Moody's credit rating agency has awarded the UAE a strong credit rating — the second such global assessment in as many weeks, after Fitch did the same three weeks ago — reinforcing the country's creditworthiness as stronger than the challenges it faces.
Moody's affirmed the country's credit rating at Aa2, maintaining a stable outlook.
The affirmation reflects high per capita income and diversification of the domestic economy, which supports the UAE's capacity to absorb shocks, the strength of its institutions, and the effectiveness of its policies — all of which underpin continued progress in economic diversification and a low government debt burden.
The agency explained that its decision to maintain a stable outlook reflects its expectation that the federal government's credit position will remain solid despite the geopolitical conditions in the region, even as disruption to trade flows through the Strait of Hormuz persists.
Moody's noted that the federal government possesses wide fiscal buffers that enable it to weather economic volatility, supported by strong external accounts and ample foreign reserves. This was reflected in the decision to maintain the country's credit rating ceiling at the highest possible level — Aaa — for both local and foreign currency.
Despite the prevailing geopolitical challenges in the region, Moody's affirmed that the UAE's credit position will remain solid, benefiting from alternative oil export routes via the Habshan–Fujairah pipeline, as well as continued government efforts to expand non-oil revenue sources and enhance the country's attractiveness to foreign investment and global talent.
Fitch had rated the UAE's creditworthiness at the end of last month at AA- with a stable outlook, a move reflecting the national economy's ability to withstand geopolitical pressures in the region, supported by solid fiscal and external fundamentals.