UAE's Economic Momentum Grows in 2026

Post by : Bianca Suleiman

Throughout the initial months of 2026, the UAE experienced robust economic growth, fueled by a vigorous financial sector and a surge in foreign trade and investment activities.

As revealed by the Central Bank of the UAE, total banking assets saw a growth of 1.1 percent in February 2026, reaching AED 5.472 trillion, up from AED 5.414 trillion in January. Total credit similarly rose by 1.2 percent to AED 2.63 trillion, largely propelled by significant domestic loan increases.

Bank deposits recorded a notable 1.9 percent growth, hitting AED 3.4 trillion, with resident deposits rising by 1.7 percent to AED 3.098 trillion, indicative of heightened confidence in the banking framework.

The financial sector remains stable, showcasing a capital adequacy ratio of 17 percent and a liquidity coverage ratio surpassing 146.6 percent—well above international standards.

Banks in the UAE have bolstered their global presence, with leading institutions such as First Abu Dhabi Bank and Emirates NBD recognized in Forbes’ 2026 best bank rankings.

Global credit agencies reaffirmed the UAE’s positive economic standing. Moody’s retained its Aa2 rating with a stable outlook, while S&P Global Ratings confirmed the AA/A-1+ ratings for local and foreign currencies.

S&P highlighted the UAE’s strong fiscal stance, predicting that consolidated government net assets would reach around 184 percent of GDP by 2026, with liquid assets estimated at approximately 210 percent of GDP.

The UAE continues to broaden its global trade reach through its Comprehensive Economic Partnership Agreements (CEPA) initiative, signing new pacts with countries including the Philippines and Nigeria in early 2026.

Additionally, the UAE has made history by entering the top ten merchandise exporters worldwide, now ranking ninth according to the World Trade Organisation.

In 2025, total foreign trade rose by 15 percent to AED 6 trillion, with trade in services surpassing AED 1.14 trillion and non-oil merchandise trade increasing by 27 percent to AED 3.8 trillion.

Investment remains robust; Mubadala Investment Company reported assets of AED 1.4 trillion, yielding returns of over 10 percent over five and ten years.

ADNOC has further enhanced its global brand valuation, making it into the list of the world’s 100 most valuable brands, with its brand value climbing to US$21.13 billion.

Dubai is also establishing itself as a significant global financial center, advancing to seventh place in the Global Financial Centres Index.

Business sentiment across the UAE remains strong, with a total of over 1.45 million companies registered by the end of February 2026, and Dubai Chamber of Commerce reporting 2,709 new company registrations in March.

Other emirates have also shown steady progress, with Sharjah seeing a 1 percent increase in business licences and Ajman issuing 1,617 new and renewing 8,777 licences.

At the sovereign debt level, the UAE's dirham-denominated Treasury bonds auction in March 2026 experienced strong investor interest, with AED 1.1 billion in bonds issued amid total bids reaching AED 4.85 billion.

In summary, the early 2026 economic landscape of the UAE showcases its strength, resilience, and expanding global influence.

#Global News #World News #UAE News #Finance News