Moody’s confirms UAE credit rating at Aa2, outlook stable

Moody’s review highlights UAE’s key strengths

Moody’s highlighted several factors supporting the UAE’s creditworthiness, including high per capita income, robust institutional frameworks, effective policymaking that promotes economic diversification and competitiveness, and the federal government’s very low debt burden backed by substantial fiscal reserves from years of budget surpluses. The agency noted that this review is part of its ongoing assessment of the UAE’s credit profile and does not constitute a formal credit rating action.

Government officials comment on the rating

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said the unchanged rating and stable outlook reflect the UAE’s strong institutional framework, fiscal discipline, and effective governance. He emphasised that the country’s fiscal strength, combined with its balanced budgets and substantial fiscal buffers, ensures resilience amid regional and global challenges.

Fiscal strength and economic policies

Al Hussaini highlighted that the stable outlook confirms the UAE’s sovereign credit profile remains robust, supported by economic policies focused on diversification, fiscal sustainability, and risk management. He also noted the Ministry of Finance’s ongoing efforts to enhance public financial management, develop productive sectors, and strengthen the UAE dirham sovereign yield curve, increasing transparency and reinforcing investor confidence.

S&P confirms UAE sovereign rating

S&P Global Ratings separately affirmed the UAE’s sovereign rating at AA/A-1+ for both local and foreign currencies with a stable outlook on 6 March 2026. The agency cited the government’s consolidated financial position, substantial fiscal and external reserves, and policy flexibility to navigate geopolitical and economic challenges while maintaining investor confidence.