The UAE economy has demonstrated significant upward momentum in the first few months of 2026, driven by a resilient financial sector, expanding foreign trade, and rising investment indicators. Official data confirms the nation’s growing stability and reinforces its position as a key global economic hub, offering a strong foundation for the region’s startups and investors.
Quick Facts
- Banking assets exceeded AED 5.47 trillion
- Sovereign credit rating affirmed at AA
- Non-oil trade target set at AED 4 trillion
Financial Sector Fortitude
The country’s banking and financial sector is a core pillar of this growth. According to the Central Bank of the UAE (CBUAE), total banking assets climbed 1.1% in February 2026 to reach AED 5.472 trillion. This was accompanied by a 1.2% increase in total credit to AED 2.63 trillion and a 1.9% rise in bank deposits, which now stand at AED 3.4 trillion.
The sector’s stability is further underscored by a capital adequacy ratio of 17% and a liquidity coverage ratio exceeding 146.6%, both well above international regulatory standards. Major national institutions, including First Abu Dhabi Bank (FAB), Emirates NBD, and Abu Dhabi Commercial Bank (ADCB), also secured spots on Forbes’ 2026 list of the world’s best banks.
Global Confidence and Sovereign Strength
International rating agencies have reaffirmed their confidence in the UAE’s economic management. Moody’s maintained its Aa2 rating with a stable outlook in its March 2026 review. S&P Global Ratings similarly affirmed the UAE’s sovereign credit rating at AA/A-1+ for both local and foreign currencies, also with a stable outlook.
S&P highlighted the country’s strong fiscal and economic resilience, supported by consolidated government net assets estimated at 184% of GDP and liquid assets at approximately 210% of GDP for 2026. This financial strength is also reflected in the high demand for the UAE’s dirham-denominated Treasury bonds, with the March 2026 auction seeing bids 4.4 times the issuance size.
Expanding Global Trade Footprint
The UAE is aggressively pursuing its foreign trade strategy through the Comprehensive Economic Partnership Agreements (CEPA) programme, which aims to boost non-oil trade to AED 4 trillion by 2031. In the first quarter of 2026 alone, new agreements were signed with the Philippines, Nigeria, the Democratic Republic of the Congo, and Gabon.
This strategy is yielding results. The World Trade Organisation recognized the UAE as one of the world’s top ten merchandise exporters for the first time, ranking it ninth globally. Total foreign trade reached AED 6 trillion in 2025, a 15% increase from the previous year, while non-oil merchandise trade jumped 27% to AED 3.8 trillion.
A Magnet for Business Growth
The positive macroeconomic climate is translating into a vibrant business environment on the ground. The total number of registered companies in the UAE surpassed 1.45 million by the end of February 2026.
Individual emirates are also reporting strong activity. The Dubai Chamber of Commerce added 2,709 new companies in March 2026. Sharjah recorded a 1% increase in issued and renewed business licences in Q1 2026, while Ajman saw a 7% year-on-year increase in renewed licences during the same period, signaling sustained economic activity and a stable business environment.
About the UAE Economy
The United Arab Emirates has one of the most diversified economies in the Middle East. While historically reliant on oil and gas, it has successfully transitioned towards a knowledge-based economy focused on trade, tourism, logistics, and financial services. It serves as a major global hub for business and investment, supported by a pro-business regulatory environment and world-class infrastructure.
Source: Zawya
