Economist Grants a BBB Sovereign Rating to UAE

  • Abu Dhabi, UAE
  • 30 January 2020

The British Research Unit (The Economist Intelligence Unit), granted the United Arab Emirates, a sovereign assessment (BBB), revealing that the UAE maintained a surplus in its current accounts, indicating that the budget deficit remains slight.

According to the "Economist", the huge financial reserves and assets of the sovereign funds of the UAE are able to enhance its ability to fulfill its obligations easily, and to face the fluctuation in world oil prices. On the level of currency stability, the UAE received a BBB rating, revealing in the monthly risk assessment report, that the contraction that strengthened the UAE's external competitiveness began to improve.

The Unit gave the UAE a similar evaluation of BBB in terms of the stability of the banking sector, revealing that the financial indicators remain healthy, despite the relatively high level of non-performing loans recently. The Emirates also obtained a BB evaluation in terms of political stability, and the same evaluation in terms of the stability of the economic growth structure, indicating that the UAE is benefiting at this level from the diversification of its economy, which is the most diversified in the region.

Source (Al-Khaleej Newspaper, Edited)