Capital Intelligence Ratings (CI) has affirmed the United Arab Emirates’ long-term foreign and local currency ratings at AA, with a stable outlook, underscoring the country’s robust fiscal health, solid external position, and strong economic fundamentals. The short-term foreign and local currency ratings have also been affirmed at A1+, according to a CI report cited by Al Etihad.
The affirmation reflects the UAE’s consolidated fiscal strength, a stable domestic political environment, a high GDP per capita, a sound banking system, and continued efforts at economic diversification.
The report highlights that “the UAE’s current account balance is expected to post a surplus of 6.5% of GDP between 2025 and 2027,” supported by strong hydrocarbon exports and a rise in non-oil goods and services.
Fiscal Strength Drives Confidence
CI projects the UAE will maintain a budget surplus of 3.6% of GDP in 2025, rising to an average of 4% of GDP during 2026–2027, based on an assumed average oil price of USD 60 per barrel and increased non-hydrocarbon revenues.
The UAE’s strong fiscal framework, prudent public finance management, and enhanced budget structures across federal and emirate-level governments continue to drive investor confidence, CI noted.
Optimistic Growth Forecast
The ratings agency expects the UAE’s GDP to grow at an average annual rate of 4.8% between 2025 and 2027, driven by accelerating reforms, robust domestic demand, and rapid expansion in non-oil sectors.
Credit Strength Affirmed Across Agencies
The CI update aligns with assessments from other major rating agencies. In June, S&P Global Ratings affirmed the UAE’s long-term sovereign rating at “AA” with a stable outlook, citing strong fiscal and external buffers. S&P anticipates GDP growth to average 4% through 2025–2028, supported by momentum in the non-oil sector and rising oil output.
Similarly, Fitch Ratings reaffirmed the UAE’s long-term foreign-currency issuer default rating at AA, with a stable outlook.
These consistent ratings reflect global confidence in the UAE’s macroeconomic stability, reform-driven growth agenda, and resilient financial system.
