S&P Global Ratings has affirmed its ‘AA/A-1+’ long- and short-term foreign and local currency sovereign credit ratings on the United Arab Emirates with a stable outlook, reflecting the country’s strong fiscal position, substantial external assets, and continued economic resilience supported by diversified growth initiatives.
The stable outlook reflects the view that the UAE’s large fiscal and external buffers provide room for policy maneuvering during adverse geopolitical developments or unfavorable hydrocarbon sector dynamics, including potential disruptions to oil production or exports.
The AA/A-1+ ratings continue to be supported by the government’s strong fiscal and external positions. The UAE’s exceptional consolidated net asset position, estimated at about 184 percent of GDP in 2026, provides a significant fiscal, external and economic buffer against external shocks, while government liquid assets are estimated at around 210 percent of GDP.
General government debt remains very low, estimated at about 27 percent of GDP in 2026, while the consolidated fiscal balance recorded an average surplus of 5.6 percent over the 2021–2025 period.
Non-oil sectors account for roughly 75 percent of GDP, strengthening the economy’s ability to withstand volatility in global markets. Government investments and sovereign wealth funds also play an important role in supporting financial stability.
The UAE’s banking sector has demonstrated strong resilience and financial soundness in recent years and is expected to benefit from the continued expansion of the country’s non-oil economy over the next 12–24 months. Solid loan growth is projected to continue in 2026–2027, supported by ample liquidity in the banking system and anticipated monetary policy easing.
The stable outlook reflects the expectation that the UAE’s strong fiscal and external buffers will continue to support AA/A-1+ economic stability and policy flexibility in the face of potential external shocks.
