UAE Aa2 Rating with Stable Outlook Unchanged Following Moody's Ratings Periodic Review

• Review highlights strength of fiscal fundamentals, robust institutions, and resilience amid regional developments

H.E. Mohamed bin Hadi Al Hussaini:

The unchanged rating reflects the strength of the UAE’s fiscal fundamentals and the effectiveness of its economic policies, which are built on diversification, fiscal discipline and sustainability.

Abu Dhabi, UAE, 04 April 2026

The Ministry of Finance announced that the credit rating agency Moody’s Ratings (Moody’s) has completed a periodic review of the ratings of the United Arab Emirates (UAE) on 30 March 2026. The review reassessed the appropriateness of the current rating, which remains unchanged at Aa2 with a stable outlook, reflecting continued global confidence in the strength of the UAE’s economy and the sustainability of its fiscal policies, despite ongoing regional geopolitical tensions.

Moody’s clarified that this periodic review does not constitute a credit rating action, but reflects its ongoing assessment of the UAE’s credit profile based on recent developments and applicable methodologies.

The review highlighted several key strengths underpinning the UAE’s creditworthiness, including high per capita income, robust institutional frameworks, and effective policymaking that supports continued economic diversification and competitiveness. It also underscored the federal government’s very low debt burden and strong financial position, supported by substantial fiscal reserves accumulated over years of budget surpluses.

Strong international confidence

H.E. Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said that the completion of Moody’s periodic review, with no change to the current rating and a stable outlook, reflects the UAE’s strong institutional framework and its track record of effective governance and policymaking.

His Excellency noted that the UAE’s fiscal strength is anchored in the federal government’s very low debt burden and its consistent track record of maintaining balanced budgets, reinforcing its resilience amid evolving regional and global challenges.

He added that the stable outlook confirms that the UAE’s sovereign credit profile remains robust, supported by substantial fiscal buffers and prudent financial management, enabling the country to effectively navigate ongoing regional developments.

Al Hussaini further emphasised that the unchanged rating reflects the strength of the UAE’s fiscal fundamentals and the effectiveness of its economic policies, which are built on diversification, fiscal discipline and sustainability.

He added that maintaining strong investment-grade ratings is a testament to the government’s integrated performance and long-term strategic planning, further reinforcing the UAE’s position as a reliable and resilient global economic hub.

His Excellency also highlighted the Ministry of Finance’s continued efforts to enhance public financial management, support the growth of productive sectors, and advance the development of the UAE dirham sovereign yield curve, contributing to greater transparency and strengthening the country’s attractiveness in global capital markets.

He noted that this review reinforces confidence in the UAE’s investment environment and underscores its ability to maintain financial and economic stability under various conditions.

Continuing the path of diversification

The latest review reflects the UAE’s continued progress in expanding non-oil revenues and strengthening its economic diversification agenda. It also recognises the country’s effective risk management framework and its commitment to prudent financial policies, which support economic stability and sustainable growth.

Moody’s indicated that the UAE’s credit profile remains resilient despite regional geopolitical tensions, supported by substantial fiscal reserves and strong institutional backing.

Meanwhile, S&P Global Ratings affirmed on 6 March 2026 the UAE’s sovereign rating at AA/A-1+ for both local and foreign currencies, with a stable outlook, citing the strength of the government’s consolidated financial position and substantial fiscal and external reserves, which provide policy flexibility to navigate geopolitical developments and economic challenges, while reinforcing investor confidence and the UAE’s position as a stable and attractive destination for global capital.