The ratings on Abu Dhabi are anchored by its strong fiscal and external positions, which give it fiscal policy flexibility. Standard & Poor’s said the exceptional strength of the government's net asset position also provides a buffer to counter the negative impact of oil price volatility on economic growth and government revenues, as well as on the external account.
The ratings are constrained by S&P’s view that the emirate has weak political institutions, lacks transparency and public accountability, and has limited timely financial and economic data, particularly regarding government assets. The ratings are also constrained by the contingent liabilities from Abu Dhabi-based government-related entities (GREs), as well as those related to the UAE more broadly. Limited monetary policy flexibility, in view of the pegged exchange rate and the underdeveloped domestic bond markets, also constrains the ratings.
S&P said, “Abu Dhabi is one of the world's wealthiest economies; we estimate GDP per capita at $109,000 in 2013. We expect real GDP growth in 2012 to be around 4.5 per cent, premised on 6.4 per cent growth in oil output, together with 4.0 per cent growth in non-oil sectors.
Read more: http://www.gulfbase.com/news/standard-poor-s-rates-emirate-of-abu-dhabi-aa-stable-a-1-/229458
The ratings are constrained by S&P’s view that the emirate has weak political institutions, lacks transparency and public accountability, and has limited timely financial and economic data, particularly regarding government assets. The ratings are also constrained by the contingent liabilities from Abu Dhabi-based government-related entities (GREs), as well as those related to the UAE more broadly. Limited monetary policy flexibility, in view of the pegged exchange rate and the underdeveloped domestic bond markets, also constrains the ratings.
S&P said, “Abu Dhabi is one of the world's wealthiest economies; we estimate GDP per capita at $109,000 in 2013. We expect real GDP growth in 2012 to be around 4.5 per cent, premised on 6.4 per cent growth in oil output, together with 4.0 per cent growth in non-oil sectors.
Read more: http://www.gulfbase.com/news/standard-poor-s-rates-emirate-of-abu-dhabi-aa-stable-a-1-/229458
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