The UAE’s ambassador to the United States has moved to dismiss suggestions that the country requires outside financial backing, after reports emerged that Abu Dhabi had entered into discussions with Washington over a potential currency swap agreement.
“Any suggestion that the UAE requires external financial backing misreads the facts,” Yousef Al Otaiba, Ambassador of the UAE to the US, Minister of State said in a statement.
Al Otaiba pointed to the scale of the UAE’s financial position as evidence of its strength.
UAE holds $2 trillion in sovereign assets, says Ambassador
“The UAE is one of the world’s most financially resilient economies, underpinned by more than $2 trillion in sovereign investment assets, more than $300 billion in foreign currency reserves held by the UAE’s central bank, and a banking sector with approximately $1.5 trillion in deposits,” he said.
The ambassador’s statement came after the Wall Street Journal reported that the UAE had started discussions with the United States over a currency swap agreement, in a move aimed at building a financial safety net against scenarios of stress in global markets.
The report said the step comes amid rising geopolitical and economic risks that could pressure liquidity and global financing flows.
Currency swap agreements are tools that give central banks flexibility to handle sudden market disruptions. They provide emergency liquidity when needed and bolster confidence in the financial system. Analysts note that such arrangements do not necessarily signal an imminent crisis, but rather a step to boost readiness and protect markets from volatility.
The mere start of these discussions is viewed as a step that reinforces confidence and supports financial stability, the Wall Street Journal said.
Al Otaiba also welcomed the broader context in which the discussions are taking place, expressing appreciation for Washington’s recognition of the depth of ties between the two countries.
“We very much appreciate President Trump’s recognition of the UAE as one of America’s most important economic & trade partners. That recognition reflects the depth of a relationship built on mutual interest, mutual investment & long-term strategic confidence,” he said.
He said the UAE had already committed more than $1 trillion to the U.S. economy, with a pathway for that figure to grow considerably.
“The UAE and the United States will continue to prosper together for decades to come, not because one depends on the other for support, but because both benefit from one of the world’s most important economic partnerships,” Al Otaiba said.
