The UAE’s credit rating continues to be strong despite geopolitical tensions, with the country’s investment minister seeing more opportunities for investors as projects open up.
The UAE Minister of Investment, Mohamed Hassan Alsuwaidi, said that as the country opens its doors for more projects, it will create more “lucrative” and “interesting’ opportunities for investors, though he admitted that it means project costs will go up.
“If you’re doing a project with the (Dubai) government, you have a sovereign bank kind of relationship,” he said, adding that making a 6 per cent return is “high quality in my view.”
“If you can make a long-term high single or low double for the long term with high certainty, I’d take that anyway,” he added.
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The minister said the world’s cost of capital is growing , but that he thinks the UAE’s credit rating as a country continues to be strong.
Credit ratings agency S&P Global noted Dubai’s recovery will take on a “V-shape” in 2027 after the economy retracts, with the agency expecting disruptions from the war continuing until next year.
Source: Khaleej Times