Strong sovereign credit ratings

Amid the latest crisis, the world’s three leading credit rating agencies—Moody’s, S&P Global, and Fitch—reaffirmed their confidence in the UAE and Abu Dhabi’s ability to maintain strong sovereign ratings despite regional developments. This confidence is underpinned by extensive financial buffers, large external reserves, and solid sovereign assets.

Moody’s reaffirmed the UAE’s Aa2 rating with a stable outlook, reflecting global confidence in the resilience of its economy and the sustainability of its fiscal policies despite geopolitical tensions. Key drivers include effective economic diversification policies, low federal government debt, strong financial reserves accumulated from years of budget surpluses, high per capita income, and robust institutional frameworks. 

S&P Global Ratings maintained the UAE and Abu Dhabi’s long- and short-term sovereign ratings at “AA/A-1+” with a stable outlook, citing abundant financial and external reserves that provide the country with substantial capacity to manage potential geopolitical developments. The agency also emphasized Abu Dhabi’s disciplined fiscal policy and one of the strongest financial buffers among rated sovereigns.

Fitch Ratings noted that the UAE and most GCC countries possess vast sovereign assets that serve as a protective cushion against short-term disruptions in energy revenues, while low taxation on non-oil sectors limits fiscal impact from economic fluctuations. 

Robust financial base and banking sector strength

The UAE’s strong fiscal base positions it to effectively manage regional volatility and absorb economic shocks. The banking sector continues to demonstrate remarkable resilience and stability, supported by strong non-oil economic performance expected over the next 24 months.

The country’s banking and financial sector maintains exceptionally high levels of capital adequacy (17%) and liquidity coverage (146.6%), exceeding international regulatory requirements. Total banking sector assets surpass Dh5.42 trillion, underscoring the strength of financial institutions and their ability to support economic activity under all conditions. 

Global trade leadership and exceptional growth

The UAE has further cemented its position as a global trade hub by entering the world’s top 10 goods exporters for the first time, ranking ninth globally according to the World Trade Organization.

The country recorded exceptional growth in total foreign trade, reaching Dh6 trillion ($1.63 trillion) in 2025, up from AED 5.23 trillion ($1.42 trillion) in 2024—an increase of nearly 15%. Notably, services trade surpassed Dh1.14 trillion for the first time, while non-oil goods trade reached Dh3.8 trillion.

Record-breaking real estate performance

The UAE’s real estate sector continues to perform strongly, supported by sustained investor confidence and robust demand. Developers remain optimistic about continued growth and expansion, as reflected in the steady launch of new projects and ongoing construction activity.

Abu Dhabi’s real estate market recorded an unprecedented performance in the first quarter of 2026, with transactions surging by 160.7% year-on-year to Dh66 billion across more than 13,500 deals—marking the best quarterly performance on record and reinforcing the emirate’s status as a leading global investment destination.

Dubai also achieved its strongest quarterly performance ever, with real estate transactions reaching Dh251 billion across 61,578 deals. This represents a 30% increase in value compared to the same period in 2025, alongside significant growth in both transaction volume and sales value.