Fitch Ratings has affirmed Abu Dhabi’s credit rating at AA with a stable outlook. According to the agency, this reflects the continued strength of the emirate’s financial position, the resilience of its economy, and its ability to meet its financial obligations under various economic conditions.

The rating signals a low level of risk and long-term stability in fiscal and economic policies.

Fitch added that this rating is based on the strength of the emirate’s substantial sovereign assets, which form a fundamental pillar of its financial stability, along with low levels of public debt relative to the size of the economy.

This provides the government with broad financial flexibility and the ability to handle potential pressures without affecting overall stability. It also reflects efficiency in resource management and in directing resources toward supporting growth.

It revealed that the economy in Abu Dhabi is witnessing increasing diversification in income sources, with notable growth in non-oil sectors, especially tourism, financial services, industry, and infrastructure. This contributes to a gradual reduction in oil dependency and enhances long-term economic sustainability. Additionally, it supports a more attractive and competitive investment environment.

It pointed out that Abu Dhabi Investment Authority plays a crucial role in supporting the emirate’s financial stability through its extensive global investments, which generate stable returns and provide an additional source of strength to the economy. It also enhances the emirate’s ability to withstand global economic fluctuations and consistently maintain its financial position.

Expectations confirm continued financial surpluses in the coming years, supported by efficient public spending management and the flexibility of the local economy, along with the ongoing implementation of developmental and strategic projects.

The financial situation is expected to remain robust thanks to large financial reserves that provide additional protection against any external shocks.

According to Fitch, the affirmation of the AA rating reflects confidence in Abu Dhabi’s strong economy and financial stability and reaffirms its position as one of the most stable economies in the region.

It also enhances its attractiveness to foreign investments and supports continued long-term economic growth.