The Ministry of Finance confirmed that Moody’s Ratings concluded its periodic assessment of the United Arab Emirates on 30 March 2026. The evaluation reaffirmed the existing Aa2 rating with a stable outlook, signalling sustained international confidence in the country’s economic resilience and fiscal sustainability, despite prevailing regional geopolitical pressures.
Moody’s noted that the exercise does not represent a formal rating action, but forms part of its routine monitoring process, assessing the UAE’s credit profile in light of recent developments and established analytical frameworks.
The assessment identified several core strengths supporting the UAE’s credit profile, including elevated per capita income levels, strong institutional capacity, and policy effectiveness that continues to drive economic diversification and competitiveness. It further highlighted the federal government’s minimal debt exposure and solid financial standing, underpinned by significant fiscal reserves built through consistent budget surpluses.
Mohamed bin Hadi Al Hussaini stated that the outcome of Moody’s review, with the rating and outlook unchanged, reflects the UAE’s robust institutional architecture and its proven governance and policymaking capabilities.
He emphasised that the country’s fiscal strength is rooted in low sovereign debt and a sustained record of balanced budgets, enhancing its ability to withstand shifting regional and global dynamics.
He added that the stable outlook reaffirms the resilience of the UAE’s sovereign credit profile, supported by strong fiscal buffers and disciplined financial management, enabling effective navigation of ongoing regional developments.
Al Hussaini further noted that the maintained rating underscores the strength of the UAE’s fiscal fundamentals and the success of its economic strategies, which prioritise diversification, fiscal prudence, and long-term sustainability.
He also remarked that preserving strong investment-grade ratings reflects cohesive government performance and forward-looking strategic planning, reinforcing the UAE’s standing as a dependable and resilient global economic centre.
Additionally, he highlighted the Ministry of Finance’s ongoing initiatives to strengthen public financial management, stimulate growth across productive sectors, and develop the UAE dirham sovereign yield curve, enhancing transparency and boosting the country’s appeal in international capital markets.
He concluded that the review bolsters confidence in the UAE’s investment climate and demonstrates its capacity to maintain economic and financial stability across varying conditions.
The findings also point to continued advancement in expanding non-oil revenue streams and deepening economic diversification. They further acknowledge the UAE’s sound risk management practices and commitment to prudent fiscal policies, which collectively support long-term economic stability and sustainable growth.
