The Ministry of Finance has announced that the credit rating agency Moody’s has completed its periodic review of the United Arab Emirates’ credit ratings as of March 30, 2026. The current credit rating has been reaffirmed at “Aa2” with a stable outlook, reflecting ongoing global confidence in the resilience of the UAE economy and the sustainability of its financial policies, despite regional geopolitical tensions.
Moody’s clarified that this review does not constitute a change in the credit rating but serves as an ongoing assessment of the country’s creditworthiness based on recent developments and established methodologies.
The review highlighted several key factors supporting the UAE’s creditworthiness, including high per capita income, robust institutional frameworks, and effective policies that continue to drive economic diversification and competitiveness. Additionally, the review noted a low level of federal government debt and strong financial standing, backed by significant financial reserves accumulated over years of budget surpluses.
Strong International Confidence
On this occasion, Minister of State for Financial Affairs, Mohamed bin Hadi Al Husseini, stated that Moody’s completion of the periodic review without altering the current rating and maintaining a stable outlook reflects the strength of the UAE’s institutional framework and its track record in governance efficiency and effective policymaking.
He emphasized that the country’s financial strength rests on its low federal government debt levels and its consistent ability to achieve balanced budgets, which enhances its capacity to navigate regional and global challenges. The stable outlook underscores the robustness of the country’s sovereign creditworthiness, supported by strong reserves and sound financial management, allowing it to effectively handle regional developments.
The Minister further stressed that maintaining the rating showcases the solid financial foundations of the UAE and the efficiency of its economic policies, which are based on diversification, fiscal discipline, and sustainability. Retaining investment-grade credit ratings reflects the integration of governmental performance and long-term strategic planning, solidifying the UAE’s status as a reliable and flexible global economic hub.
Additionally, he noted that the Ministry of Finance will continue to collaborate with relevant parties to enhance resource management efficiency, develop productive sectors, and improve the sovereign yield curve for the dirham, thereby promoting transparency and increasing the UAE’s attractiveness in global capital markets. This review reinforces confidence in the country’s investment environment and confirms its ability to maintain financial and economic stability under various conditions.
Ongoing Diversification Efforts
This review indicates the UAE’s ongoing progress in expanding non-oil revenues and advancing its economic diversification agenda. It also highlights the efficiency of the risk management framework and the nation’s commitment to prudent financial policies that support economic stability and sustainable growth.
Moody’s noted that the UAE’s creditworthiness remains resilient despite regional geopolitical tensions, underpinned by substantial financial reserves and robust institutional structures.
In this context, S&P Global confirmed on March 6, 2026, that it retains its sovereign rating for the UAE at ‘AA/A-1+’ for both local and foreign currencies, with a stable outlook. This rating is based on the strength of the unified financial position of the government and abundant financial and foreign reserves, providing flexibility in policies to address geopolitical developments and economic challenges, thereby bolstering investor confidence and reinforcing the UAE’s stature as a stable and attractive destination for global capital.