Gulf Economies Retain Top Ratings Amid Regional Conflict

Fitch Ratings and S&P Global Ratings have maintained their high sovereign credit ratings for Qatar and the UAE, despite ongoing regional conflict. Fitch affirmed Qatar's Long-Term Issuer Default Ratings at 'AA' and removed the country from Rating Watch Negative, but maintained a negative outlook due to risks to liquefied natural gas exports and infrastructure.

Fitch expects Qatar's economy to contract 18.8 percent in 2026 due to lower LNG production, but expects a sharp economic rebound as LNG flows normalize and production begins from the North Field expansion.

S&P Global Ratings affirmed the UAE's long- and short-term foreign- and local-currency sovereign credit ratings at 'AA/A-1+' with a stable outlook, citing the country's substantial financial and external buffers.