The UAE government achieves a sovereign credit rating - AA - and has a stable outlook
The UAE obtained a sovereign credit rating - AA - with a stable outlook by the international agency "Fitch", in a step that reflects the creditworthiness of the federal government institutions and their distinct ability to formulate the necessary policies to continue growth, while maintaining the highest standards that ensure the discipline of the country's credit performance. , Backed by a plethora of strengths.
The UAE’s obtaining a strong credit rating at this important time reflects the country's great ability to overcome economic challenges, and the government's success in developing innovative economic, financial and monetary policies that enabled it to overcome the current conditions imposed by the spread of the Corona pandemic, especially since the report relied on 18 indicators that measure the economic and financial fields. And banking and monetary, in addition to those designated to measure the performance of the balance of payments and foreign trade.
His Highness Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, affirmed that the country's strong credit rating has many elements behind it, on top of which is the effectiveness of strategies and policies for the economic, financial and credit sectors, in addition to government institutions with strong and disciplined performance, and His Highness said: “You adopt The UAE is an advanced method and an integrated approach to managing public money, and through the governance of all dimensions of the financial, monetary and credit systems, in a manner that ensures the disciplined and conscious interpretation of the provisions of the law, and contributes to raising the efficiency of financial performance, rationalizing public spending and optimal use of financial allocations in a way that helps maximize resources and improve their management. .
His Highness added: “Government work teams in the relevant ministries and bodies are keen to draw financial budgets that are capable of achieving the boundless Emirati ambition, and within an integrated and realistic framework in order to contribute to achieving economic goals, to continue the comprehensive and sustainable development process, and to meet the needs of citizens and all those on the land of the state. And raising their standard of living, taking into account preserving the strength of the state budget and the balance in government spending, and keeping the size of public debt at its lowest levels.
His Highness Sheikh Hamdan bin Rashid Al Maktoum indicated that the UAE was one of the first countries in the region in the serious pursuit of diversifying the economic system and preparing for the post-oil phase, relying on its large financial capabilities, abundant oil reserves and advanced infrastructure, and His Highness said: “I mocked The UAE government is the elements of strength that the country possesses to enhance the pillars of a sustainable economy, supported by its strong foreign relations and a wide network of partners around the world, which have made the UAE a global destination for money and business, and a destination for investors and major global institutions and companies.
The international credit reports issued by major international agencies since the beginning of this year reflect the resilience of the UAE economy despite the many challenges that have swept the global economy.
The credit strength of the UAE economy is evident in many indicators such as its high per capita gross domestic product, low public debt rates, and the efficiency of the tools and means of managing public money and balanced government spending.
During the past years, the government in the UAE was able to exploit its comparative advantages, on top of which are the large oil reserves and high sovereign assets to build an impenetrable dam wall that strengthened the ability of the UAE economy and increased its ability to face difficulties and challenges, and the state occupied a distinguished position Among the most promising economies, in light of its firm desire to diversify the economic portfolio and supply it with new and innovative sectors and fields, such as investing in advanced technology, space and the future.
The data estimates the total combined assets of sovereign funds in the UAE at $ 1.3 trillion (4.76 trillion dirhams), while the country has large oil and gas reserves.
Fitch's rating, which comes as a supplement to other classifications issued by prestigious international bodies at the beginning and middle of this year, reflects the confidence of international institutions, especially those concerned with the credit rating, in the strength of the UAE economy, and its ability to achieve a rapid and strong recovery from the repercussions that accompanied the spread of the new Corona virus in the world. As the national economy showed great strength and flexibility that made it praised by many global economic organizations and institutions.
The classification highlights the effectiveness and balance of the economic and financial policies pursued by the UAE government, which has set a clear goal for itself to be one of the fastest economies to recover from the repercussions of the pandemic, which required the provision of support packages to help companies and economic entities of various sizes, while the federal authorities concerned with sectors are keen Economic and financial, to provide all the necessary elements for the continuation of the growth rates that have always been one of the basic features of the UAE economy over the past years.
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