S&P Global Affirms UAE's Strong Financial Position

Sep 5, 2026

81 min

Sep 5, 2026 13:31

S&P Global: UAE possesses a solid financial shield against shocks

## UAE's Credit Rating and Economic Stability

S&P Global Ratings has maintained the United Arab Emirates' 'AA/A-1+' credit rating with a stable outlook, highlighting the country's robust financial buffers. These include significant sovereign wealth fund assets and foreign exchange reserves, which provide a strong defense against global economic fluctuations.

## Banking Sector Resilience

The UAE's banking sector is noted for its stability, with a strong net foreign asset position of approximately $247 billion as of mid-2026. This strength is attributed to improved asset quality and reduced exposure to high-risk sectors, such as hospitality and real estate. The Central Bank of the UAE's regulatory measures further bolster the sector's resilience.

## Hydrocarbon and Economic Growth

The UAE's economic outlook is supported by plans to increase hydrocarbon production, especially following its exit from OPEC in May 2026. This move allows for a gradual rise in oil output, projected to reach 5 million barrels per day by 2029. This expansion is expected to drive GDP growth and maintain fiscal surpluses.

## Infrastructure and Export Capacity

The UAE is enhancing its export capacity through infrastructure projects like the West-East Pipeline, set to double ADNOC's export capabilities by 2027. These developments, along with expanded port facilities, are expected to support long-term growth in the hydrocarbon sector.

## Fiscal Strength and Future Prospects

The UAE's fiscal position remains strong, with low government debt and high liquid assets. The government's strategic initiatives, such as the issuance of Treasury Sukuk, aim to deepen local capital markets and promote financial inclusion. S&P suggests that successful implementation of these measures could lead to an improved credit rating in the future.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents

LinkedIn X Facebook WhatsApp Telegram