Fitch Ratings affirmed the United Arab Emirates' Long-Term Issuer Default Rating at AA- with a Stable Outlook.
The rating reflects low consolidated government debt, strong net external asset position, and high GDP per capita.
Fitch expects a gradual reopening of the Strait of Hormuz from July 2026. Oil prices will average $87 per barrel.
Real GDP is projected to shrink 4.8% in 2026. Dubai's GDP could fall close to 7%.
The budget surplus will remain at 4.5% of GDP in 2026. Government debt will rise to 27% of GDP.
Central Bank data showed a 9% drop in foreign exchange reserves to $277 billion.
Abu Dhabi's sovereign net foreign assets stand at 164% of UAE GDP.
