UAE Economy Strengthens with 1.1% Banking Asset Growth in Early 2026

The UAE economy has shown resilience and growth in the early months of 2026, buoyed by a robust financial and banking sector alongside increasing foreign trade and investment metrics. This information is corroborated by official data and various local and international reports, which emphasize the nation’s stability and adaptability in navigating emerging challenges.

Banking Sector Growth

According to the Central Bank of the UAE (CBUAE), total banking assets rose by 1.1% in February 2026, surpassing AED 5.47 trillion, compared to AED 5.41 trillion in January. This growth is indicative of a healthy banking environment, with total credit increasing by 1.2% to AED 2.63 trillion, largely driven by a domestic credit surge of AED 20.6 billion.

Bank deposits also reflected positive trends, growing by 1.9% to AED 3.4 trillion. Resident deposits alone saw a 1.7% increase, exceeding AED 3 trillion. The financial sector’s stability is further underscored by a capital adequacy ratio of 17% and a liquidity coverage ratio exceeding 146.6%, both of which remain well above international regulatory benchmarks.

Recognition and Ratings

UAE banks have solidified their positions in the global financial landscape, as evidenced by their inclusion in Forbes’ 2026 list of the world’s best banks. Notable institutions such as First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Emirates Islamic, Emirates NBD, and Commercial Bank of Dubai were highlighted.

International credit rating agencies have reaffirmed the UAE’s sovereign strength. Moody’s maintained its Aa2 rating with a stable outlook following a review on March 30, 2026. Concurrently, S&P Global Ratings confirmed the UAE’s sovereign credit rating at AA/A-1+ for both local and foreign currencies, also with a stable outlook. S&P emphasized that the UAE economy is supported by strong fiscal and economic resilience, with consolidated government net assets estimated at approximately 184% of GDP in 2026 and government liquid assets around 210% of GDP.

Trade and Investment Initiatives

The UAE continues to advance its foreign trade strategy through the Comprehensive Economic Partnership Agreements (CEPA) program, aiming to elevate non-oil trade to AED 4 trillion by 2031. In the first quarter of 2026, the UAE signed agreements with countries including the Philippines, Nigeria, the Democratic Republic of the Congo, and Gabon.

The UAE has also made significant strides in international trade rankings, entering the top ten merchandise exporters globally for the first time, securing the ninth position according to the World Trade Organization. The total foreign trade for the UAE reached AED 6 trillion in 2025, marking a 15% increase from 2024. Notably, trade in services exceeded AED 1.14 trillion for the first time, while non-oil merchandise trade grew by 27% to AED 3.8 trillion.

Investment Portfolio Resilience

Mubadala Investment Company has further enhanced the resilience of its investment portfolio, with total assets reaching AED 1.4 trillion and a cumulative return exceeding 10% over five- and ten-year periods. Meanwhile, ADNOC has maintained its status as the UAE’s most valuable brand for the eighth consecutive year, entering the list of the world’s 100 most valuable brands. Its brand value increased by 11% to US$21.13 billion, reflecting a growth of over 350% since 2017.

Business Growth and Licensing

Dubai has achieved its highest ranking in the Global Financial Centres Index (GFCI), moving up to seventh place, highlighting its increasing prominence as a global financial hub. The number of registered companies in the UAE surpassed 1.45 million by the end of February 2026. The Dubai Chamber of Commerce reported the addition of 2,709 new companies in March 2026. The Sharjah Economic Development Department noted a 1% year-on-year increase in issued and renewed licenses during the first quarter of 2026. In Ajman, 1,617 new licenses and 8,777 renewed licenses were issued in the same period, with renewed licenses increasing by 7% year-on-year.

Sovereign Debt Performance

At the sovereign debt level, the UAE’s dirham-denominated Treasury bonds (T-Bonds) auction for March 2026 yielded strong results, with a total issuance of AED 1.1 billion. The auction attracted robust demand from primary dealers for tranches maturing in September 2027 and January 2031, with total bids reaching AED 4.85 billion, approximately 4.4 times the issuance size.

Source: www.arnnewscentre.ae

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Published on 2026-04-18 10:35:00 • By the Editorial Desk