Dubai: The UAE government received an Aa2 rating in creditworthiness - which is the highest sovereign rating in the region - with a stable outlook for the national economy by the international rating agency, Moody's.
“International rating agency Moody's has given the UAE government an Aa2 rating for creditworthiness, the highest sovereign rating in the region with a stable outlook for the national economy,” His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the news via tweet.
Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, confirmed that this new classification reflects the strength and resilience of the country's economy and its ability to overcome various challenges - especially in light of the exceptional circumstances that the world is witnessing due to the COVID-19 pandemic.
“This rating has proved beyond any doubt the solid foundations of the nation’s public finances,” said Sheikh Hamdan bin Rashid.
He affirmed the success and effectiveness of the proactive policies and measures taken by the federal government to deal with the effects of the pandemic, to continue achieving economic targets and pushing forward comprehensive and sustainable development, making the UAE a model to be followed globally.
Sheikh Hamdan bin Rashid praised the efforts of the various teams in the federal government and praised their tireless endeavors to build, develop and anticipate the demands of vital sectors in accordance with the vision of the wise leadership, and with the aim of placing the UAE amongst the ranks of developed countries and global competitiveness map - noting that the already UAE continues to hold leading positions in different international competitiveness indices.
In its report on the sovereign credit profile of the UAE, Moody’s indicated that the UAE’s credit strength is supported by the country’s credit strength and the high per capita GDP, and the country's internal stability and strong and broad international relations. The agency also mentioned that the UAE has demonstrated strong institutional effectiveness by spearheading reforms and diversifying its revenue base.
As for the outlook for the national economy, the agency indicated that it was supported by the stable outlook on the sovereign rating, as well as the upside potential from continuing diversification efforts. That, in addition to its compliance to emergency commitments associated with government and geopolitical tensions.
Fitch has recently set the UAE sovereign rating at (AA-), with a stable outlook. This rating is among 18 indicators that reflect the creditworthiness of federal government institutions and their ability to formulate necessary policies for sustained growth.