The world’s top three credit rating agencies – Fitch Ratings, S&P Global and Moody’s Investors Service – have assigned strong sovereign credit rating for the UAE as it continues to strengthen economic diversification and boost non-oil sector growth.
It reflects international confidence in the strength of the UAE economy and the sustainability of its fiscal policies, the Ministry of Finance said on Wednesday, state news agency Wam reported.
A sovereign credit rating measures a government’s ability to repay its debts. It gives insights into the level of risk associated with investing in the debt of a particular country.
S&P announced on June 17 that it assigned the UAE’s sovereign rating at “AA” with a stable outlook. Moody’s affirmed the UAE’s rating at “Aa2” with a stable outlook in its annual review. “Aa” ratings are considered high quality and subject to low credit risk. “Aa2” is the third-highest rating on Moody's scale. Fitch also affirmed the UAE’s rating at “AA-” with a stable outlook, on June 24.
The consensus highlights the UAE’s “advanced fiscal standing” and galvanises its position among the few countries globally with strong sovereign credit ratings from the three agencies, the ministry said.
“The affirmation of the UAE’s strong sovereign rating by the world’s top three international credit rating agencies, and their consensus on a stable outlook, reflects the deep-rooted international confidence in the resilience of our national economy and the efficiency of our fiscal policies,” said Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.
The UAE’s economy grew by 4 per cent last year, driven by a strong expansion in its non-oil sector. The country's real gross domestic product reached Dh1.776 trillion ($484.7 billion), the Ministry of Economy said this month.
The non-oil economy grew by 5 per cent annually to Dh1.34 trillion, accounting for more than 75 per cent of the country's economic activity, while oil-related activities contributed Dh434 billion to the overall economy.
The UAE Central Bank expects real GDP to expand by 4.4 per cent in 2025 and increase to 5.4 per cent in 2026, it said in a report on Wednesday. This performance is driven by the "expected robust dynamism" of non-hydrocarbon activities and a "robust increase" in the hydrocarbon sector following updated Opec+ production plans, the regulator said.
Non-hydrocarbon GDP is expected to grow by 4.5 per cent in 2025 and in 2026, while the hydrocarbon sector is projected to grow by 4.1 per cent in 2025, followed by an expansion of 8.1 per cent the following, it estimated.
Meanwhile, S&P Global Market Intelligence on Thursday released a more optimistic growth projection. It expects the Emirates’ economy to accelerate to 5.4 per cent in 2025 and 6.5 per cent the following year, supported by the output rebound in the oil sector and strength of domestic demand.
The UAE, the Arab world's second-largest economy, has been focusing heavily on diversifying away from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation. The country has introduced several reforms including longer-stay residence visas as well as new visa categories to attract more talent.
The UAE's non-oil trade hit a record Dh3 trillion last year − up 14.6 per cent year-on-year, boosted by its Comprehensive Economic Partnership Agreement programme. Deals that the Emirates has signed with nations from Colombia to Australia have contributed Dh135 billion to the country's non-oil trade, an increase of 42 per cent compared with the previous year.
The ratings confirm the UAE’s ability to diversify and boost non-oil revenue, maintain sound fiscal discipline, manage risks effectively and uphold prudent fiscal policies. All of these factors have contributed positively to economic stability and sustained growth across various sectors, the Ministry of Finance said.
The “AA-” rating reflects the UAE’s moderate consolidated government debt, strong net external asset position and high GDP per member of the population, Fitch said. This benefits from Abu Dhabi’s sovereign net foreign assets, which are among the highest of Fitch-rated sovereigns, the ratings agency added.
The Fitch report noted the elevated geopolitical risks in the region, while affirming the UAE’s strong ability to withstand short-term disruptions, supported by its substantial fiscal and external buffers.
The agency projects the UAE’s GDP to rise by 5.2 per cent this year, buoyed by a 9 per cent rise in oil production in Abu Dhabi. It estimates non-oil growth of more than 4 per cent, despite “mounting global challenges”.
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
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The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
UAE rugby season
FIXTURES
West Asia Premiership
Dubai Hurricanes v Dubai Knights Eagles
Dubai Tigers v Bahrain
Jebel Ali Dragons v Abu Dhabi Harlequins
UAE Division 1
Dubai Sharks v Dubai Hurricanes II
Al Ain Amblers v Dubai Knights Eagles II
Dubai Tigers II v Abu Dhabi Saracens
Jebel Ali Dragons II v Abu Dhabi Harlequins II
Sharjah Wanderers v Dubai Exiles II
LAST SEASON
West Asia Premiership
Winners – Bahrain
Runners-up – Dubai Exiles
UAE Premiership
Winners – Abu Dhabi Harlequins
Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens
Winners – Dubai Hurricanes
Runners-up – Abu Dhabi Harlequins
UAE Conference
Winners – Dubai Tigers
Runners-up – Al Ain Amblers
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Killing of Qassem Suleimani
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