Fitch Grades U.A.E. at AA- in First Rating

The transcript discusses the influence of Abu Dhabi on the UAE's credit rating, highlighting the lack of explicit support but noting other factors like GDP per capita and low debt levels. It explores the UAE's intention to issue federal bonds to develop a yield curve rather than for urgent financing needs. The role of IDEA in the federal budget is examined, emphasizing its abstract role as a backstop. The UAE's debt ceiling is analyzed, considering the collective debt of the Emirates and government-related enterprises. Finally, the potential impact of a vaccine on economic growth is considered, with uncertainties remaining high.

What is one reason for the high credit rating of the UAE?

• Explicit support from Abu Dhabi

• Full claim on Abu Dhabi's assets

• High level of national debt

• High GDP per capita

What is the primary reason for the UAE's intention to issue a federal bond?

• Increasing foreign investments

• Urgent financing need

• Developing a yield curve

• Reducing national debt

What role does IDEA play in the UAE's federal budget?

• Primary source of revenue

• Major investor in infrastructure

• Abstract backstop for Abu Dhabi

• Direct financial contributor

What is the UAE's debt ceiling as a percentage of GDP?

• 9.7%

• 5%

• 20%

• 15%

How does the UAE's overall debt situation affect its creditworthiness?

• It solely depends on Abu Dhabi's assets

• It has no effect

• It improves creditworthiness

• It is considered along with federal and Emirates' debts

What is the expected economic growth rate for the UAE next year?

• 4%

• 2%

• 1%

• 3%

What factor could potentially alter the UAE's economic growth forecast?

• Increase in oil prices

• Arrival of a vaccine

• Decrease in public spending

• Rise in real estate prices