S&P Global Ratings has affirmed the sovereign credit rating of the United Arab Emirates at AA / A-1+ for both local and foreign currencies, maintaining a stable outlook. This decision underscores the strength of the country’s financial and economic fundamentals, as well as its capability to tackle regional challenges.
The agency highlighted in its report that the UAE’s economy is characterized by high levels of financial and economic resilience, bolstered by substantial government assets that provide robust protection against external shocks. By 2026, the combined net government assets are estimated to reach approximately 184% of the GDP, while liquid government assets are projected to be around 210% of GDP.
Additionally, the report noted that government debt levels in the UAE remain relatively low compared to advanced economies, with total government debt estimated at about 27% of GDP. Furthermore, the state’s public finances recorded average surpluses of around 5.6% during the period from 2021 to 2025, with continued surpluses expected in the coming years.
The diversity of the UAE’s economy is also seen as a significant strength, with non-oil sectors accounting for about 75% of GDP. This diversification enhances the economy’s ability to withstand fluctuations in global markets, along with the vital role played by government investments and sovereign wealth funds in supporting financial stability.
The report also pointed to the strength of the banking sector, which boasts high capital adequacy and strong external assets. Lending growth is anticipated to continue in 2026 and 2027, supported by ample liquidity and a stable economic environment.
S&P emphasized that the substantial financial reserves and flexibility in economic policies equip the UAE with a significant capacity to respond to geopolitical developments, thereby supporting ongoing economic and financial stability in the years ahead.