UAE growth accelerates in early 2026 driven by banking and trade gains
Dubai: UAE economic growth accelerated in the early months of 2026, driven by expanding banking activity, rising foreign trade flows, and sustained investment momentum, according to official data and international reports.
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Economic indicators point to a system underpinned by liquidity, capital strength, and policy continuity. The country continues to position itself as a stable and adaptive economic hub amid shifting global conditions.
New data from the Central Bank of the UAE shows total banking sector assets rose 1.1 percent in February to exceed Dh5.472 trillion, up from Dh5.414 trillion in January. Credit growth remained steady, with total credit increasing 1.2 percent to Dh2.63 trillion, supported by a Dh20.6 billion rise in domestic credit.
Sustained banking expansion
Deposits also strengthened across the system. Total bank deposits climbed 1.9 percent to Dh3.4 trillion, while resident deposits rose 1.7 percent to Dh3.098 trillion, reflecting sustained liquidity and confidence in the banking sector.
At the start of March, key stability metrics remained well above global benchmarks. The capital adequacy ratio stood at 17 percent, while the liquidity coverage ratio exceeded 146.6 percent, reinforcing the sector’s resilience and capacity to absorb external shocks.
UAE banks expanded their international recognition in Forbes’ 2026 list of the world’s best banks. The ranking included major institutions such as First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Emirates NBD, Emirates Islamic, and Commercial Bank of Dubai, highlighting the sector’s growing global standing.
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Sovereign ratings strength
Sovereign credit strength remains intact. Moody’s reaffirmed the UAE’s Aa2 rating with a stable outlook following its March 30, 2026 review. In parallel, S&P Global Ratings maintained the country’s AA/A-1+ rating for both local and foreign currencies, citing strong fiscal buffers and economic resilience.
S&P noted that the UAE’s fiscal position remains supported by substantial asset buffers, with consolidated government net assets estimated at around 184 percent of GDP in 2026 and liquid assets at approximately 210 percent of GDP. These levels continue to underpin sovereign stability and policy flexibility.
Trade expansion remains a central driver of growth. The UAE is advancing its Comprehensive Economic Partnership Agreements programme, which aims to raise non-oil trade to Dh4 trillion by 2031. During the first quarter of 2026, agreements were signed with the Philippines, Nigeria, the Democratic Republic of the Congo and Gabon, extending the country’s trade network.
Trade drives diversification
The UAE’s global trade positioning continues to improve. It entered the top ten global merchandise exporters for the first time, ranking ninth according to the World Trade Organisation. Trade data for 2025 underscores the pace of expansion, with total foreign trade reaching Dh6 trillion, marking a 15 percent increase compared to 2024.
Growth extended across sectors, with trade in services exceeding Dh1.14 trillion for the first time and non-oil merchandise trade rising 27 percent to Dh3.8 trillion. These figures highlight ongoing diversification away from hydrocarbons and deeper integration into global trade flows.
Investment activity continues to reinforce economic depth. Mubadala Investment Company reported assets of Dh1.4 trillion, with cumulative returns exceeding 10 percent over both five- and ten-year periods, reflecting sustained portfolio performance.
Financial hubs gain ground
At the corporate level, ADNOC entered the list of the world’s 100 most valuable brands while maintaining its position as the UAE’s most valuable brand for the eighth consecutive year. Its brand value rose 11 percent to $21.13 billion, representing growth of more than 350 percent since 2017.
Dubai strengthened its global financial standing, advancing to seventh place in the Global Financial Centres Index, its highest ranking to date. The move reflects continued growth in financial services and international investor activity.
Business activity across the UAE continues to expand, with the number of registered companies exceeding 1.45 million by the end of February. Dubai Chamber of Commerce reported the addition of 2,709 new companies in March alone, signalling sustained entrepreneurial momentum.
Robust debt markets
At the emirate level, the Sharjah Economic Development Department recorded a 1 percent increase in issued and renewed licences during the first quarter compared to the same period in 2025. In Ajman, 1,617 new licences were issued alongside 8,777 renewals, with renewed licences rising 7 percent year-on-year, reflecting continued business stability.
Debt markets also recorded strong investor demand. The UAE’s dirham-denominated Treasury bond auction in March raised Dh1.1 billion, with bids reaching Dh4.85 billion, equivalent to around 4.4 times the issuance size.
The auction covered tranches maturing in September 2027 and January 2031, indicating sustained confidence in sovereign instruments and broader macroeconomic stability.
