RIYADH: Fitch Ratings affirmed the UAE’s long-term issuer default ratings at ‘AA-’ with a stable outlook, citing strong external assets, low government debt and resilience in oil export revenues despite the regional war.
In its latest report, the rating agency said Abu Dhabi’s sovereign net foreign assets were estimated at 180 percent of UAE gross domestic product in 2026, among the highest levels of Fitch-rated sovereigns. The country’s strong credit profile is also underpinned by its high GDP per capita and substantial fiscal and external buffers.
The affirmation comes amid heightened regional tensions that have disrupted shipping through the Strait of Hormuz and weighed on business confidence and investment across the Middle East.
In July, Fitch affirmed Saudi Arabia’s ‘A+’ sovereign credit rating with a stable outlook, citing strong fiscal buffers and external finances despite regional conflict and temporary trade disruptions.
“The Stable Outlook reflects demonstrated resilience of oil export revenues during the Iran war, which largely offsets the immediate negative impact of the war, as well as abundant fiscal and external buffers, and our expectation that individual emirates will bear the cost of the war rather than the federal government,” Fitch said.
Fitch said the UAE’s strengths are balanced by relatively weak governance indicators compared with rating peers, elevated geopolitical risks, heavy reliance on hydrocarbon revenues and significant leverage…
