UAE maintains strong credit rating with stable outlook after Moody’s review

The UAE Ministry of Finance has said the country's maintained its Aa2 credit rating with a stable outlook, following a periodic review of the country’s financial position by the credit ratings agency Moody’s Ratings.

The agency said the unchanged rating reflects continued confidence in the strength of the UAE’s economy and its fiscal policies, despite ongoing regional geopolitical tensions. It added the review was part of its routine assessment and did not constitute a formal rating action.

Moody’s highlighted several factors supporting the UAE’s credit profile, including high income levels, strong institutions and effective policymaking, alongside progress in economic diversification.

It also pointed to the federal government’s low debt levels and substantial fiscal reserves, built up over years of budget surpluses, as key strengths underpinning financial stability.

Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini said the stable rating reflects the country’s fiscal discipline and ability to maintain balanced budgets, helping it navigate regional and global challenges.

He added that ongoing efforts to strengthen financial management, improve market transparency and support non-oil growth are reinforcing the UAE’s position as a stable and attractive destination for investment.

Separately, S&P Global Ratings earlier this month affirmed the UAE’s sovereign rating at AA/A-1+ with a stable outlook, citing strong public finances and significant fiscal and external reserves.