S&P Global Ratings affirmed the UAE sovereign credit rating at AA with a stable outlook, citing strong fiscal reserves and economic resilience.

ABU DHABI: The UAE sovereign credit rating has been affirmed at ‘AA/A-1+’ by S&P Global Ratings, with the agency maintaining a stable outlook for the country’s economy.

S&P said the UAE sovereign credit rating continues to be supported by strong fiscal and external positions, giving the government flexibility to respond to geopolitical tensions or volatility in global energy markets. According to the agency, the country’s substantial fiscal buffers and external reserves provide significant protection against potential economic shocks.

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The ratings agency estimated the UAE government’s consolidated net asset position will reach about 184 percent of gross domestic product in 2026. Government liquid assets are also expected to remain extremely high, at around 210 percent of GDP. These reserves provide a strong financial cushion that supports the UAE sovereign credit rating and strengthens investor confidence.

Public debt levels remain relatively low compared with many advanced economies. S&P estimates the UAE’s general government debt will stand at roughly 27 percent of GDP in 2026. The country has also maintained strong fiscal discipline, with consolidated fiscal balances averaging a surplus of 5.6 percent between 2021 and 2025.

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Another key factor supporting the UAE sovereign credit rating is the country’s diversified economy. Non-oil sectors now account for about 75 percent of national GDP, helping reduce exposure to fluctuations in global oil prices. Investments by government entities and sovereign wealth funds also play a major role in maintaining financial stability and supporting long-term economic growth.

The report also highlighted the resilience of the UAE banking sector. S&P said banks have demonstrated strong financial soundness in recent years and are expected to benefit from continued expansion in the non-oil economy.

The agency expects solid loan growth to continue between 2026 and 2027, supported by strong liquidity levels in the banking system and a potential easing of monetary policy conditions.