- Financial Strength, Expanding Trade and Rising Investment Reinforce Global Leadership
DUBAI: The United Arab Emirates economy continued its strong upward trajectory during the opening months of 2026, driven by the robust performance of the banking and financial sector, accelerating foreign trade, and rising investment activity, according to official data and international reports.
The UAE has further strengthened its position as a regional and global economic leader, emerging as a model of stability, resilience, and flexibility in responding to changing global challenges while sustaining long-term growth.
Banking Sector Reaches New Milestones
According to Central Bank of the UAE, total banking assets rose by 1.1 percent in February 2026 to surpass AED5.472 trillion, compared to AED5.414 trillion in January.
Total credit expanded by 1.2 percent to AED2.63 trillion, supported by an increase of AED20.6 billion in domestic credit. Bank deposits also climbed by 1.9 percent to AED3.4 trillion, with resident deposits increasing by 1.7 percent to AED3.098 trillion.
The UAE banking sector continues to demonstrate exceptional strength, with the capital adequacy ratio standing at 17 percent in early March, while the liquidity coverage ratio exceeded 146.6 percent—well above international regulatory benchmarks.
UAE Banks Gain Global Recognition
The country’s leading financial institutions further enhanced their international reputation after being featured in Forbes 2026 list of the world’s best banks. Recognised UAE institutions included First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Emirates Islamic, Emirates NBD and Commercial Bank of Dubai.
Strong Sovereign Ratings Reflect Economic Confidence
Global rating agencies reaffirmed the UAE’s sovereign strength, with Moody’s maintaining its Aa2 rating with a stable outlook in March 2026. Meanwhile, S&P Global Ratings affirmed the UAE’s AA/A-1+ sovereign rating for local and foreign currencies, also with a stable outlook.
S&P highlighted the UAE’s strong fiscal and economic resilience, supported by consolidated government net assets estimated at around 184 percent of GDP in 2026, while government liquid assets were estimated at approximately 210 percent of GDP.
Foreign Trade Expansion Accelerates
The UAE continues to advance its ambitious foreign trade strategy through the Comprehensive Economic Partnership Agreements Programme, which targets non-oil trade worth AED4 trillion by 2031.
During the first quarter of 2026, new agreements were signed with Philippines, Nigeria, Democratic Republic of the Congo and Gabon, further expanding the UAE’s global commercial reach.
The UAE also entered the world’s top ten merchandise exporters for the first time, ranking ninth globally according to the World Trade Organization.
Record Trade Performance in 2025
The country’s total foreign trade reached AED6 trillion in 2025, marking a 15 percent increase compared with 2024. Trade in services exceeded AED1.14 trillion for the first time, while non-oil merchandise trade surged by 27 percent to AED3.8 trillion.
Investment Giants Drive Future Growth
Mubadala Investment Company further strengthened its global investment portfolio, with total assets reaching AED1.4 trillion and cumulative returns exceeding 10 percent over five- and ten-year periods.
Meanwhile, ADNOC joined the list of the world’s 100 most valuable brands, retaining its status as the UAE’s most valuable brand for the eighth consecutive year. Its brand value rose by 11 percent to US$21.13 billion, representing growth of more than 350 percent since 2017.
Dubai Rises as Global Financial Powerhouse
Dubai achieved its highest-ever ranking in the Global Financial Centres Index, advancing to seventh place worldwide and reinforcing its status as one of the world’s leading financial hubs.
Business Environment Continues to Thrive
The UAE recorded strong growth in business activity, with the number of registered companies surpassing 1.45 million by the end of February 2026.
Dubai Chamber of Commerce announced the addition of 2,709 new companies in March alone. Meanwhile, Sharjah Economic Development Department reported a 1 percent rise in issued and renewed licences during the first quarter, while Ajman issued 1,617 new licences and renewed 8,777 licences, with renewals increasing 7 percent year-on-year.
Strong Demand for UAE Sovereign Debt
At the sovereign debt level, the UAE’s dirham-denominated Treasury bonds auction for March 2026 recorded strong investor confidence, with a total issuance of AED1.1 billion.
Demand from primary dealers was particularly strong for tranches maturing in September 2027 and January 2031, with total bids reaching AED4.85 billion—around 4.4 times the issuance size.
A Global Model of Sustainable Growth
With powerful fundamentals, world-class infrastructure, prudent leadership, and ambitious economic diversification strategies, the UAE continues to set new benchmarks for sustainable growth, innovation, and competitiveness on the global stage.
BY: The Times Union
