RIYADH: Fitch Ratings has affirmed Abu Dhabi’s long-term issuer default ratings at “AA” with a stable outlook, citing the emirate’s high gross domestic product per capita, very strong fiscal and external metrics, and low government debt.  
 
The ratings agency said Abu Dhabi’s government debt remains among the lowest of Fitch-rated sovereigns, while its sovereign net foreign assets rank among the highest. However, the rating is constrained by the emirate’s heavy reliance on hydrocarbons, a relatively weak but improving economic policy framework, geopolitical risks and governance indicators that lag behind those of its peers, according to the agency. 
 
Abu Dhabi economy expands on non-oil growth  

Abu Dhabi’s economic expansion has been supported by growth in non-oil activities. The emirate’s GDP grew 7.7 percent year on year in the third quarter of 2025 to 325.7 billion dirhams ($88.7 billion), while its non-oil economy expanded 7.6 percent, accounting for 54 percent of total output, according to the Statistics Centre – Abu Dhabi.  
 
The broader UAE economy is also expected to maintain its growth momentum, with the International Monetary Fund projecting real GDP growth of 7.7 percent in 2027 in its October 2026 projections. 

The figures come as the US-Iran war adds geopolitical and economic uncertainty across the region. 

The newly released statement said: “The Stable Outlook reflects the resilience of oil export revenue during the US-Iran war, which is allowing a continued increase in fiscal and external buffers.” 

Key rating drivers 

Fitch said Abu Dhabi’s rating is supported by its exceptionally strong fiscal and external position, including low government debt, substantial sovereign net foreign assets, projected budget surpluses and resilient oil revenues.  
 
The agency estimated the emirate’s sovereign net foreign assets at 300 percent of GDP at the end of 2025, while government debt stood at 19.3 percent of GDP.  
 
However, the rating is constrained by the emirate’s reliance on hydrocarbons, geopolitical risks, contingent liabilities linked to government-related entities and a relatively weak, though improving, economic policy framework. 

UAE’s country ceiling to apply to Abu Dhabi  

Fitch is withdrawing Abu Dhabi’s separate Country Ceiling, as it will no longer maintain an individual ceiling for the emirate.  

The UAE’s Country Ceiling, currently rated “AA+”, will continue to apply to Abu Dhabi. The agency added that the withdrawal will not affect the applicable Country Ceiling for issuers based in Abu Dhabi, as the emirate’s ceiling had previously been aligned with that of the UAE.