Post by : Badri Ariffin

In the opening months of 2026, the UAE's economy showcased a remarkable growth trajectory, buoyed by a strong financial sector and increasing foreign trade and investment levels.

Data from the Central Bank of the UAE revealed that total banking assets grew by 1.1 percent in February 2026, climbing to over AED 5.472 trillion from AED 5.414 trillion in January. Total credit also saw a 1.2 percent rise, reaching AED 2.63 trillion, largely due to a notable uptick in domestic lending.

Bank deposits demonstrated robust growth, increasing by 1.9 percent and reaching AED 3.4 trillion. Particularly, resident deposits grew by 1.7 percent to AED 3.098 trillion, indicating heightened confidence in the banking landscape.

The financial sector remains stable, with a capital adequacy ratio of 17 percent and a liquidity coverage ratio exceeding 146.6 percent, surpassing international regulatory standards.

Moreover, UAE banks have scaled their global footprint, with top institutions like First Abu Dhabi Bank and Abu Dhabi Commercial Bank recognized among the world’s finest in Forbes’ 2026 rankings.

Global credit rating agencies affirmed the UAE's solid economic standing, with Moody’s maintaining an Aa2 rating and S&P Global Ratings endorsing the country’s AA/A-1+ rating for local and foreign currencies.

S&P noted the UAE’s strong fiscal health, anticipating consolidated government net assets will reach around 184 percent of GDP in 2026, with liquid assets estimated at about 210 percent of GDP.

Through its Comprehensive Economic Partnership Agreements (CEPA) programme, the UAE is expanding its global trading presence. In the first quarter of 2026, new agreements were formed with nations such as the Philippines, Nigeria, and the Democratic Republic of the Congo.

The nation also celebrated a significant milestone by entering the top ten merchandise exporters globally, ranking ninth according to the World Trade Organisation.

Total foreign trade hit AED 6 trillion in 2025, marking a 15 percent increase from 2024. Service trade reached AED 1.14 trillion, while non-oil merchandise trade soared by 27 percent to AED 3.8 trillion.

Investment activity remains robust, with Mubadala Investment Company reporting an asset value of AED 1.4 trillion and returns exceeding 10 percent over five and ten-year periods.

Additionally, ADNOC has bolstered its global brand recognition, ranking among the world's top 100 most valuable brands, with its brand value surging by 11 percent to US$21.13 billion since 2017.

Dubai has further solidified its international financial stature, climbing to seventh place in the Global Financial Centres Index, reinforcing its position as an essential global financial hub.

Business activity in the UAE remains lively, with over 1.45 million registered companies recorded by the end of February 2026. The Dubai Chamber of Commerce noted the establishment of 2,709 new companies in March alone.

Other emirates are also experiencing steady growth, with Sharjah observing a 1 percent rise in business licences during the first quarter and Ajman issuing 1,617 new licences alongside 8,777 renewals, reflecting stable economic conditions.

On the sovereign debt front, strong investor interest was evident during the UAE's dirham-denominated Treasury bonds auction in March 2026, where the government issued AED 1.1 billion in bonds, garnering bids totaling AED 4.85 billion, approximately 4.4 times the offered amount.

In summary, the UAE's economic performance in early 2026 underscores its resilience, strong financial foundation, and expanding global influence.

#world news #Global News #UAE News #Finance News