Abu Dhabi’s economic growth will average 2.5 per cent over 2019-2022, said S&P Global Ratings in a new report, forecasting a gradually rising real GDP growth, on the back of recovering oil production and a revival in investment.

“We expect regional geopolitical tensions will, on balance, have a limited impact on Abu Dhabi, and expect continued domestic stability,” S&P said in the report.

Abu Dhabi's key rating strength comes from its large stock of fiscal buffers, it added.

Abu Dhabi's fiscal position is underpinned by significant oil production volumes and impacted by oil price movements, notwithstanding government efforts to increase non-oil revenue and subdue spending.

“We project that Abu Dhabi Investment Authority's (ADIA's) assets will average above 250 per cent of GDP over 2019-2022,” said S&P.

“We expect the Central Bank of the United Arab Emirates (UAE) will maintain the peg of the dirham to the US dollar, backed by a large level of foreign reserves and assets,” it added. – TradeArabia News Service