The "Capital Intelligence" agency affirmed the long-term sovereign rating of foreign and local currencies of the UAE at "AA-". It also affirmed the short-term sovereign rating of foreign and local currencies at “A1+” with a stable outlook.
The agency noted that the consolidation of its sovereign rating of the Emirates reflects the strength of the consolidated financial and external balances, and it is expected that these balances will remain strong throughout the period covered by the rating. Indicating that the UAE is willing to support federal institutions, in the event of financial problems, which is unlikely. According to the report, the stable internal political environment and the high per capita share of the country's GDP, continuous efforts to diversify the economy and improve the structure of the consolidated budget are all factors that have supported the strong rating of the Emirates.
The agency expressed its expectations that the external balances of the UAE will remain strong, supported in this by Abu Dhabi. In its report, the agency expected that the current account of the UAE would remain in a high surplus, with a ratio of 18.5 percent to GDP in 2022, then 14.7 percent in 2023. Compared to 11.7 percent in 2021. "Capital Intelligence" indicated that this expected rise is mainly due to the rise in oil prices and the recovery of tourism revenues after the gradual easing of restrictions on travel in various countries of the world due to the outbreak of the Corona pandemic.
Source (Emirati Gulf Newspaper, Edited)
