Capital Intelligence Ratings affirmed the long-term sovereign rating of foreign and local currencies in the UAE at AA-; With a stable rating outlook.
The agency said that fixing the UAE's rating reflects the strength of the country's consolidated financial and external balances, while it expected them to remain strong throughout the forecast period, explaining that the oil-rich Emirate of Abu Dhabi will be ready To support federal institutions in the event of any potential financial hardship.
The agency noted that the country's stable internal political environment, high GDP per capita, and ongoing efforts to diversify the economy and improve the unified budget structure support the ratings.
The agency expects the UAE's current account to remain in surplus very high, reaching 18.5% of GDP in 2022 and about 14.7% in 2023, compared to 11.7 % in 2021.
This is mainly due to the sharp increase in global hydrocarbon prices and the recovery of tourism revenues following the gradual lifting of travel restrictions related to the COVID-19 pandemic.
