Fitch Ratings has affirmed the UAE’s sovereign rating at AA- with a stable outlook.
This affirmation, according to a recent statement issued by the agency, reflects the continued strength of the country’s economic and financial fundamentals, along with the ability of the UAE economy to maintain stable levels of sovereign risk.
Strong economic fundamentals and stable public debt
Fitch noted that the rating reflects the strength of the UAE’s public finances, supported by flexible economic policies, strong reserves, low consolidated government debt in the UAE, strong net external assets, and high GDP per capita.
The report also highlights the country’s ability to absorb global economic shocks, given the increasing diversification of income sources, particularly in non-oil sectors.
It also benefits from the net sovereign foreign assets of the Emirate of Abu Dhabi (AA/Stable Outlook), which amount to about 164 percent of the UAE’s GDP in 2025, and are among the highest globally among countries rated by Fitch.
A non-oil economy supports stability
The rating confirmation comes at a time when the UAE economy continues to strengthen the contribution of non-oil sectors to growth, including tourism, logistics, trade, and technology.
Rating agencies estimate that this economic diversification is a key factor in supporting medium-term stability and reducing vulnerability to fluctuations in global oil prices.
The agency expects the UAE to continue achieving a consolidated budget surplus of 4.5 percent of GDP in 2026, despite public spending rising by about 20 percent.
moderate government debt
Fitch Ratings expects the UAE’s consolidated government debt to rise to 27 percent of GDP in 2026, compared to 24.3 percent at the end of 2025, a level well below the AA rating average of 50.3 percent.
