"Fitch", the credit rating agency, revealed the strength of the recovery momentum for the UAE economy, and gave it a stable future outlook that reflects the country's financial solvency and the size of its assets and financial resources.
The agency noted in its report that there are several factors that contribute to alleviating pressures on the credit assessments of the region's economies at this stage, including the improvement in international oil prices. The agency expects that the momentum of recovery and the strong growth of the UAE economy will continue to raise at a rate of 5.4 percent next year and about 2.9 percent in 2023.
The agency expects the UAE's current account surplus to jump from 5.7 percent of GDP in 2020 to 9.8 percent this year, to rise to 10.9 percent next year and 10.2 percent of GDP by 2.23. According to the agency, the rise in financial assets with low levels of government debt supports the credit assessment of the UAE and its future outlook, as the agency expects the government debt rate to rise as a percentage of GDP, and to continue rising to 39% by 2024 with Abu Dhabi's preference for debt over asset monetization.
“Fitch” also expected the economy to record a budget surplus of 1.4 percent of GDP this year, about 1.2 percent next year, and 0.5 percent by 2023.
Source (Al Khaleej Newspaper-UAE, Edited)
