The UAE economy is based on high levels of financial and economic resilience
S&P Global Ratings has affirmed the UAE's sovereign credit rating at AA/A-1+ for both local and foreign currencies, with a stable outlook, confirming the strength of the country's financial and economic fundamentals and its ability to face regional challenges.
The UAE economy is based on high levels of financial and economic resilience, supported by large government assets that provide strong protection against external shocks, with combined net government assets estimated at 184% of GDP in 2026, while government liquid assets account for about 210% of GDP.
The report indicated that the levels of government debt in the UAE are still low compared to advanced economies, as the public debt is estimated at about 27% of GDP, while the country's public finances recorded fiscal surpluses of an average of 5.6% during the period between 2021 and 2025, with the fiscal surplus expected to continue in the coming years.
The diversification of the UAE economy is a key strength factor, with non-oil sectors accounting for about 75% of GDP, which enhances the economy's ability to cope with the volatility of global markets, in addition to the important role that government investments and sovereign funds play in supporting financial stability.
The report also pointed to the strength of the country's banking sector, which enjoys high solvency and strong external assets, with lending growth expected to continue in 2026 and 2027, supported by abundant liquidity and a stable economic environment.
The agency stressed that the large financial reserves and flexibility in economic policies give the UAE a high ability to deal with geopolitical developments, which supports the continuation of economic and financial stability in the coming years
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