RIYADH: The UAE’s long-term foreign-currency rating has been affirmed at “AA-” with a stable outlook by Fitch, reflecting the country’s consolidated government debt, strong net external asset position, and high gross domestic product per capita.
The US-based rating agency noted that this outlook benefits from Abu Dhabi’s sovereign net foreign assets — amounting to 157 percent of the UAE’s gross domestic product in 2024 — which rank among the highest of all Fitch-rated sovereigns.
The agency noted the ongoing regional geopolitical risks, but it assumes the conflict involving Israel, the US, and Iran will be contained and short-lived.
The report comes as Israel and Iran agreed to a ceasefire brokered by the US, which took effect on June 24, following 12 days of conflict that raised fears of a broader regional escalation.
In its commentary, Fitch Ratings stated: “A regional conflagration would pose a risk to Abu Dhabi’s hydrocarbon infrastructure and to Dubai as a trade, tourism and financial hub,”
