The UAE economy sustained its growth momentum in the early months of 2026, supported by a resilient banking sector and improving trade and investment indicators. Moreover, official data and international assessments continue to position the country as a stable and flexible economy amid shifting global conditions.
According to the Central Bank of the UAE, total banking assets rose 1.1% in February 2026 to more than AED5.472tn, compared to AED5.414tn in January. Additionally, total credit increased 1.2% to AED2.63tn, driven by a AED20.6bn rise in domestic credit.
Bank deposits climbed 1.9% to AED3.4tn. Furthermore, resident deposits grew 1.7% to AED3.098tn, reflecting continued liquidity strength across the system.
The financial sector also maintained solid prudential buffers. Moreover, the capital adequacy ratio stood at 17% in early March, while the liquidity coverage ratio exceeded 146.6%, remaining above international requirements.
UAE banks strengthened their global visibility through inclusion in Forbes’ 2026 list of the world’s best banks. Additionally, the list included First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Emirates Islamic, Emirates NBD and Commercial Bank of Dubai.
Ratings support fiscal resilience outlook
International credit rating agencies reaffirmed the UAE’s sovereign position. Moody’s maintained its Aa2 rating with a stable outlook following its review on 30 March 2026, while S&P Global Ratings affirmed the UAE at AA/A-1+ for both local and foreign currencies with a stable outlook.
S&P said the UAE’s outlook remains supported by fiscal strength and economic resilience. Moreover, it estimated consolidated government net assets at around 184% of GDP in 2026, while government liquid assets were projected at roughly 210% of GDP.
The UAE also continued to expand its trade strategy under the Comprehensive Economic Partnership Agreements programme, which targets non-oil trade of AED4tn by 2031. Additionally, during the first quarter of 2026, agreements were signed with the Philippines, Nigeria, the Democratic Republic of the Congo and Gabon.
The UAE entered the world’s top ten merchandise exporters for the first time, ranking ninth globally, according to the World Trade Organisation. Furthermore, the report showed total foreign trade reached AED6tn in 2025, up 15% from 2024.
Services trade exceeded AED1.14tn for the first time. Meanwhile, non-oil merchandise trade rose 27% to AED3.8tn, reinforcing diversification progress.
Investment and business activity remain strong
Mubadala Investment Company reported assets of AED1.4tn, supported by cumulative returns above 10% over both five- and ten-year periods. Moreover, the results reflected steady performance across its portfolio during volatile market conditions.
ADNOC entered the list of the world’s 100 most valuable brands and retained its position as the UAE’s most valuable brand for the eighth consecutive year. Additionally, its brand value rose 11% to $21.13bn, reflecting growth of more than 350% since 2017.
Dubai advanced to seventh place in the Global Financial Centres Index. As a result, the ranking marked its highest position to date and highlighted its growing role as a global financial hub.
The UAE also recorded continued growth in business formation, with registered companies exceeding 1.45 million by the end of February. Moreover, Dubai Chamber of Commerce reported 2,709 new companies joining in March 2026.
Sharjah recorded a 1% rise in issued and renewed licences in the first quarter compared to the same period last year. Additionally, Ajman issued 1,617 new licences and renewed 8,777 licences, with renewals increasing 7% year on year.
Strong demand for dirham-denominated bonds
At the sovereign debt level, the UAE’s March 2026 auction of dirham-denominated Treasury bonds raised AED1.1bn. Moreover, the issuance attracted strong demand from primary dealers for tranches maturing in September 2027 and January 2031.
Total bids reached AED4.85bn, equivalent to around 4.4 times the issuance size. As a result, the auction reflected sustained investor confidence in the UAE’s fiscal outlook and local debt market development.
