International rating agency S&P Global Ratings has affirmed the United Arab Emirates' long- and short-term foreign and local currency sovereign credit ratings at 'AA/A-1+'. The outlook on the ratings remains 'stable'. According to experts, the country's significant fiscal and external buffers provide space for policy maneuvering amid adverse geopolitical developments or hydrocarbon market fluctuations.
The agency noted that the UAE's general government debt remains very low. It is estimated to reach about 27% of GDP in 2026. The consolidated fiscal balance averaged a surplus of 5.6% over the period from 2021 to 2025.
The oil sector is no longer the sole driver of the economy, as non-oil sectors now constitute about 75% of GDP. This significantly enhances the economy's ability to withstand global market volatility. Government investments and sovereign wealth funds also play an important role in maintaining financial stability.
The UAE's banking sector has demonstrated strong resilience and financial soundness over the past few years. Over the next 12-24 months, it is likely to benefit from the strong performance of the UAE's non-oil economy.
"Our ratings on the UAE remain supported by the government’s strong fiscal and external positions. Our estimate of the exceptional strength of the government's consolidated net asset position, estimated at 184% of GDP in 2026, provides a significant fiscal, external, and economic buffer to external shocks."
"We calculate government liquid assets at about 210% of GDP. We expect solid loan growth to continue in 2026-2027. This will be supported by ample liquidity in the banking system amid expected monetary policy easing."
