Abu dhabi: S and P Global Ratings affirmed its 'AA/A-1+' long- and short-term foreign and local currency sovereign credit ratings on the UAE with a stable outlook. The stable outlook reflects the agency's view that the UAE's large fiscal and external buffers should provide space for policy maneuvering during adverse geopolitical developments or unfavorable hydrocarbon sector dynamics, including disruption in oil production or exports.
According to Emirates News Agency, the ratings on the UAE remain supported by the government's strong fiscal and external positions. The agency estimates that the government's consolidated net asset position, projected at 184% of GDP in 2026, provides a significant fiscal and economic buffer against external shocks. Government liquid assets are calculated to be about 210% of GDP.
Additionally, the UAE's general government debt is estimated to be very low, at about 27% of GDP in 2026. The consolidated fiscal balance has averaged a surplus of 5.6% over the period from 2021 to 2025. Non-oil sectors constitute about 75% of GDP, enhancing the economy's ability to withstand global market volatility, alongside the important role played by government investments and sovereign wealth funds in supporting financial stability.
The report notes that the UAE's banking sector has demonstrated strong resilience and financial soundness over the past few years. It is likely to benefit from the performance of the UAE's non-oil economy over the next 12-24 months. Solid loan growth is expected to continue in 2026-2027, supported by ample liquidity in the banking system amid anticipated monetary policy easing.
The S and P affirmed that the stable outlook reflects the view that the UAE's large fiscal and external buffers should provide space for policy maneuvering during adverse geopolitical developments.