RIYADH: Abu Dhabi’s long-term foreign-currency rating has been affirmed at “AA” with a stable outlook by Fitch, supported by the emirate’s robust fiscal surpluses, vast sovereign assets, and low debt levels.
The US-based rating agency cited Abu Dhabi’s strong balance sheet, supported by large sovereign assets and steady budget surpluses, but noted constraints such as hydrocarbon reliance, a still-developing policy framework, and weaker governance compared to peers.
This follows S&P Global’s recent assignment of a “AA/A‑1+” with a stable outlook for its foreign and local currency sovereign credit ratings to the UAE, citing the country’s strong fiscal and external positions. The agency also noted that the UAE’s sizable asset cushion would help shield it from oil price volatility and regional geopolitical tensions.
Despite these structural limitations, Abu Dhabi’s fiscal position remains one of the strongest among Fitch-rated sovereigns. At the end of 2024, government debt stood at 17.4 percent of gross domestic product, well below the peer median of 48.8 percent, and is expected to rise only marginally to 18.2 percent by 2026 due to local currency issuance aimed at supporting domestic debt market development.
