Fitch Ratings Confirms UAE’s Credit Rating at ‘AA-‘ with Stable Outlook
Fitch Ratings has reaffirmed the United Arab Emirates’ credit rating at ‘AA-‘, projecting it to be a leader in economic growth within the Gulf region by 2026.
According to the report titled “Middle East and North Africa Country Outlook 2026” released by Fitch, the UAE’s economic performance will hinge on a combination of increased oil production and sustained momentum in diversifying its non-oil sectors.
Fitch anticipates that the UAE will experience the fastest economic growth in the region by 2026, alongside Saudi Arabia. The forecast includes an expected growth of 6.8% for Abu Dhabi, while Ras Al Khaimah is projected to achieve a remarkable growth rate of 7.7%, driven by new investment projects.
A significant factor in the UAE’s financial strength is the balance between oil revenue and non-oil activity.
In terms of economic diversification, government-related entities play a crucial role in funding development and investment spending in the UAE, with the government focusing on enhancing their balance sheets. Ongoing government initiatives, alongside spending from government-related entities and private investment, will continue to be the primary drivers of robust growth in the non-oil sector across the Gulf Cooperation Council countries.
This favorable assessment comes as Abu Dhabi retains its ‘AA’ rating, and Ras Al Khaimah maintains an ‘A+’ rating, both with a stable outlook. Fitch emphasizes that the ratings for these countries reflect their resilience in the face of recent regional geopolitical tensions, showcasing the UAE’s adaptability and innovation within a fluctuating global environment.