Capital Intelligence Ratings affirmed the UAE’s long-term foreign and local currency ratings at AA-, with a stable outlook, according to a Capital Intelligence Ratings’s report picked up by Al Etihad. The sovereign’s short-term foreign and local currency ratings were also affirmed at A1+.

Fiscal strength + solid banking sector underpin the ratings: The affirmation reflects the strength of the UAE’s consolidated fiscal and external position, its stable domestic political environment, high GDP per capita, a strong banking sector, and the government’s ongoing efforts to diversify the economy and enhance the consolidated budget structure.

The UAE’s current account balance is anticipated to record a surplus of 6.5% of GDP between 2025 and 2027, driven by increased hydrocarbon exports and more non-hydrocarbon goods and services exports, according to the report. The ratings agency also sees UAE penciling in a budget surplus of 3.6% of GDP in 2025, and an average surplus of 4% of GDP during the 2026-2027 period. These projections assume an average oil price of USD 60 per barrel, boosted by robust non-hydrocarbon revenues.

Positive outlook ahead: CI is also optimistic on the UAE’s economic growth, with expectations for the GDP to expand by an average of 4.8% during the 2025- 2027 period, according to the report. This is underpinned by strong domestic activity, the implementation of reforms and the rapid growth in non-oil sectors.

REMEMBER– S&P Global Ratings assigned the UAE a long-term credit rating of “AA,” and “A-1+” on its short-term foreign and local currency sovereign credit ratings with a stable outlook, with the agency pointing to the country’s “strong fiscal and external positions,” it said in a note in June. S&P also sees the UAE’s GDP growth hovering around 4% over 2025-2028, which it attributes to “buoyant non-oil sector activity and increasing oil production.” Fitch Ratings also affirmed the UAE’s long-term foreign-currency issuer default ratings at AA- with a stable outlook.

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