UAE economy continues global rise with strong growth in early 2026

The UAE economy maintained its upward trajectory during the first months of 2026, supported by the strength of the financial and banking sector and rising foreign trade and investment indicators, according to official data and local and international reports.

The UAE has further reinforced its sustainable leadership at both regional and global levels, establishing itself as a model of stability and flexibility in addressing evolving challenges.

According to the Central Bank of the UAE (CBUAE), total banking assets increased by 1.1 per cent in February 2026 to exceed Dhs5.472 trillion, compared to Dhs5.414 trillion in January.

Total credit rose by 1.2 per cent to Dhs2.63 trillion, supported by an increase of Dhs20.6 billion in domestic credit. Bank deposits grew by 1.9 per cent to Dhs3.4 trillion, with resident deposits rising by 1.7 per cent to Dhs3.098 trillion.

The UAE’s financial sector continues to demonstrate strong stability. At the beginning of March, the capital adequacy ratio stood at 17 per cent, while the liquidity coverage ratio exceeded 146.6 per cent, remaining well above international regulatory standards.

UAE banks further strengthened their presence in Forbes’ 2026 list of the world’s best banks, which included leading national institutions such as First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Emirates Islamic, Emirates NBD and Commercial Bank of Dubai.

International rating agencies have reaffirmed the UAE’s sovereign strength. Moody’s maintained its Aa2 rating with a stable outlook following its periodic review on 30th March 2026. In parallel, S&P Global Ratings affirmed the UAE’s sovereign credit rating at AA/A-1+ for both local and foreign currencies, with a stable outlook.

S&P noted that the UAE economy is underpinned by strong fiscal and economic resilience, supported by consolidated government net assets estimated at around 184 per cent of GDP in 2026, while government liquid assets stand at approximately 210 per cent of GDP.

The UAE continues to advance its foreign trade strategy under the Comprehensive Economic Partnership Agreements (CEPA) programme, which aims to increase non-oil trade to Dhs4 trillion by 2031. During the first quarter of 2026, agreements were signed with the Philippines, Nigeria, the Democratic Republic of the Congo and Gabon.

The UAE also achieved notable international rankings, entering for the first time the list of the world’s top ten merchandise exporters, ranking ninth globally according to the World Trade Organisation.

The report indicated that the UAE’s total foreign trade reached Dhs6 trillion in 2025, marking a 15 per cent increase compared to 2024. Trade in services exceeded Dhs1.14 trillion for the first time, while non-oil merchandise trade rose by 27 per cent to Dhs3.8 trillion.

Mubadala Investment Company further strengthened the resilience of its investment portfolio, with assets reaching Dhs1.4 trillion and a cumulative return exceeding 10 per cent over five- and ten-year periods.

Meanwhile, ADNOC entered the list of the world’s 100 most valuable brands, maintaining its position as the UAE’s most valuable brand for the eighth consecutive year. Its brand value increased by 11 per cent to $21.13 billion, reflecting growth of more than 350 per cent since 2017.

Dubai also achieved its highest ranking in the Global Financial Centres Index (GFCI), advancing to seventh place, underscoring its growing prominence as a leading global financial hub.

The UAE recorded notable growth in the number of registered companies, which exceeded 1.45 million by the end of February.

In this context, Dubai Chamber of Commerce reported the addition of 2,709 new companies in March 2026. The Sharjah Economic Development Department recorded a 1 per cent increase in issued and renewed licences during the first quarter of 2026 compared to the same period in 2025. In Ajman, 1,617 new licences and 8,777 renewed licences were issued during the same period, with renewed licences increasing by 7 per cent year-on-year, reflecting a stable business environment and sustained economic activity.

At the sovereign debt level, the UAE’s dirham-denominated Treasury bonds (T-Bonds) auction for March 2026 achieved strong results, with a total issuance of Dhs1.1 billion.

The auction saw robust demand from primary dealers for tranches maturing in September 2027 and January 2031, with total bids reaching Dhs4.85 billion, equivalent to around 4.4 times the issuance size.

Earlier this month, the Ministry of Finance announced that the credit rating agency Moody’s Ratings (Moody’s) has completed a periodic review of the ratings of the United Arab Emirates (UAE) on 30 March 2026. The review reassessed the appropriateness of the current rating, which remains unchanged at Aa2 with a stable outlook, reflecting continued global confidence in the strength of the UAE’s economy and the sustainability of its fiscal policies, despite ongoing regional geopolitical tensions.

Moody’s clarified that this periodic review does not constitute a credit rating action, but reflects its ongoing assessment of the UAE’s credit profile based on recent developments and applicable methodologies.

The review highlighted several key strengths underpinning the UAE’s creditworthiness, including high per capita income, robust institutional frameworks, and effective policymaking that supports continued economic diversification and competitiveness.

WAM