Abu Dhabi, UAE – S&P Global Ratings has affirmed the UAE’s sovereign credit rating at AA/A-1+ in both local and foreign currencies, with a stable outlook. The agency affirmed the strength of the country’s financial and economic fundamentals and its ability to withstand regional challenges.
Strong financial and economic resilience
The agency explained in its report that the UAE economy is based on high levels of financial and economic resilience. It is also supported by a large volume of government assets, which provide strong protection against external shocks.
The agency estimated the consolidated net government assets at approximately 184% of GDP in 2026. Meanwhile, government liquid assets are estimated at around 210% of GDP, reflecting the strength of the country’s financial position.
Low debt levels and financial surpluses
The report noted that government debt levels in the UAE remain low compared to advanced economies, with public debt estimated at around 27% of GDP.
The country’s public finances also recorded an average surplus of 5.6% between 2021 and 2025, and these surpluses are expected to continue in the coming years.
Economic diversification and strength in the banking sector
The agency affirmed that the diversification of the UAE economy is one of its key strengths, with non-oil sectors constituting approximately 75% of GDP. This enhances the economy’s resilience to global market volatility.
The report also highlighted the significant role of government investments and sovereign wealth funds in supporting financial stability. Furthermore, the banking sector enjoys high capital adequacy and strong external assets.
The agency anticipates continued growth in banking sector lending during 2026 and 2027. This growth will be supported by ample liquidity and a stable economic environment.
High capacity to cope with geopolitical developments
The report noted that the UAE’s substantial financial reserves and flexible economic policies give it significant capacity to manage geopolitical developments in the region.
The agency affirmed that these factors support the country’s continued economic and financial stability in the coming years. They also bolster investor confidence in the UAE economy.
