The British research unit, the “Economist Intelligence Unit”, confirmed the risk assessments given to the UAE in December thanks to the continued momentum of the recovery of economic activities and the positive growth of the economy in the current year. The Economist granted a rating of "BBB" to the UAE in terms of sovereign stability, supported by the remarkable and continuous recovery in international oil prices, which reflected positively on the UAE's economic growth prospects and the financial situation.
According to a recent report issued by the agency, the financial position of the UAE is contented, and the level of public debt measured to GDP continues to decline. The UAE also has easy and quick access to global capital markets, and its huge foreign assets are among the factors that contribute to reducing risk.
The UAE maintained the BBB assessment in terms of currency stability, as the decision to stabilize the assessment is attributed to the strong recovery of exports and the rise in foreign reserves, as a result of the rise in global oil prices, as the country’s growing foreign asset base contributes to maintaining the import cover at comfortable levels, and reduces the pressure on the local currency.
Source (Al Khaleej Newspaper-UAE, Edited)
