Standard & Poor's predicts that the financial conditions of banks operating in the UAE will remain stable throughout 2026, supported by the continued strength of economic activity, credit growth, and improved liquidity, despite expectations of a slight decline in profitability compared to previous years. For 2026, Standard & Poor's expects the stability of asset quality to continue, with a limited decrease in profitability. The agency explained that UAE banks achieved strong performance in 2025, benefiting from robust credit growth, lower provisioning requirements, and rising interest margins, which translated into strong profitability levels. Additionally, liquidity improved due to deposits growing faster than lending.
