S&P Affirms UAE Sovereign Credit Rating at AA with Stable Outlook
Standard & Poor’s Global Ratings has affirmed the sovereign credit rating of the United Arab Emirates at AA / A‑1+ for both local and foreign currencies, maintaining a stable outlook and highlighting the country’s strong financial and economic fundamentals as well as its ability to navigate regional and economic challenges.
The agency noted that the UAE’s economy benefits from high financial resilience, supported by substantial government assets estimated at around 184 percent of GDP in 2026, with liquid government assets totaling approximately 210 percent of GDP, providing a strong buffer against external shocks.
The report also emphasized that government debt levels remain low compared to advanced economies, with public debt estimated at around 27 percent of GDP, while fiscal surpluses averaged 5.6 percent between 2021 and 2025, with expectations for continued surpluses in the coming years.
Economic diversification was highlighted as a key strength, with non‑oil sectors accounting for roughly 75 percent of GDP, reducing the economy’s vulnerability to global market fluctuations.
Government investments and sovereign wealth funds play a pivotal role in supporting financial stability and enhancing the UAE’s capacity to withstand challenges.
The report further underscored the resilience of the banking sector, which maintains strong capitalization and robust external assets, with lending expected to continue growing through 2026 and 2027 due to abundant liquidity and a stable economic environment.
Despite regional geopolitical tensions, S&P noted that the UAE’s large financial reserves and policy flexibility provide a high capacity to absorb potential shocks, reinforcing economic and financial stability.
This credit rating affirmation reflects the UAE’s ongoing efforts to diversify its economy, reduce reliance on oil, promote financial inclusion, and ensure sustainable long‑term growth, positioning the country to confidently face regional and global financial challenges.
