UAE Economy Shows Growth in Early 2026
- 09.05.2026
- Posted by: Uwe Hohmann
- Categories: Dubai, Middle East
The UAE has opened 2026 on solid footing. Across banking, trade, investment and business formation, the numbers point in one direction: up. For business owners in the country, or considering setting up here, the latest data offers real reassurance that the UAE remains one of the most attractive places in the world to do business.
Here is what the first few months of the year tell us, and what it means for your business.
More Companies, More Licences, More Activity
The number of registered companies in the UAE surpassed 1.45 million by the end of February 2026. That figure alone speaks about the country’s appeal as a business destination.
In March 2026, the Dubai Chamber of Commerce reported 2,709 new company registrations. The SEDD (Sharjah Economic Development Department) recorded a 1 per cent year-on-year increase in issued and renewed licences during Q1 2026. In Ajman, 1,617 new licences were issued alongside 8,777 renewals, with renewals up 7 per cent year-on-year.
This steady growth in company formation is a clear sign that confidence among entrepreneurs and investors remains high, not just in Dubai, but across the UAE.
Banking Sector: Bigger, Stronger, More Stable
The UAE’s financial system continues to grow at a steady pace. According to the CBUAE (Central Bank of the UAE), total banking assets crossed AED 5.47 trillion in February 2026, up 1.1 per cent from January alone. Total credit expanded by 1.2 per cent to AED 2.63 trillion, driven by a AED 20.6 billion increase in domestic lending. Bank deposits also climbed, rising 1.9 per cent to reach AED 3.4 trillion.
What stands out beyond the growth figures is the underlying stability. The capital adequacy ratio stood at 17 per cent at the start of March, while the liquidity coverage ratio exceeded 146.6 per cent, both well above international regulatory benchmarks. In practical terms, this means UAE banks are not just growing; they are growing on a strong foundation.
Strong Demand for UAE Government Bonds
At the sovereign debt level, the March 2026 auction of dirham-denominated T-Bonds (Treasury Bonds) resulted in a total issuance of AED 1.1 billion. Demand was strong: total bids reached AED 4.85 billion, roughly 4.4 times the issuance size. Investors competed for tranches maturing in September 2027 and January 2031, a clear sign of market confidence in the country’s fiscal outlook.
Sovereign Ratings Reaffirmed
International confidence in the UAE’s fiscal position remains firm. Moody’s maintained its Aa2 rating with a stable outlook following its periodic review. S&P (Standard & Poor’s) Global Ratings also affirmed the country’s sovereign credit rating at AA/A-1+ for both local and foreign currencies, again with a stable outlook.
S&P highlighted the UAE’s fiscal resilience, noting that consolidated government net assets are estimated at around 184 per cent of GDP (Gross Domestic Product) in 2026, while government liquid assets stand at approximately 210 per cent of GDP. These are remarkable figures by any global standard and reflect a level of fiscal strength that very few countries can match.
For businesses, strong sovereign ratings translate into a stable currency, reliable banking infrastructure and continued access to international capital markets. It is the kind of environment where long-term planning becomes easier.
Foreign Trade Records
The UAE’s trade agenda is moving forward rapidly. Under the CEPA (Comprehensive Economic Partnership Agreements) programme, which targets non-oil trade of AED 4 trillion by 2031, agreements were signed during Q1 2026 with the Philippines, Nigeria, the Democratic Republic of the Congo and Gabon. Each agreement opens new corridors for goods and services, creating opportunities for businesses based in the UAE to access wider markets.
The WTO (World Trade Organisation) recognised this momentum, reporting that the UAE entered the list of the world’s top ten merchandise exporters for the first time, ranking ninth globally.
Looking at the full-year 2025 figures, total foreign trade reached AED 6 trillion, a 15 per cent increase compared to 2024. Trade in services crossed AED 1.14 trillion for the first time, while non-oil merchandise trade rose by an impressive 27 per cent to AED 3.8 trillion.
For companies in import and export, logistics, or professional services, these figures underline why the UAE continues to be a strategic center for international commerce.
Comprehensive UAE Business Solutions
The early 2026 data paints a consistent picture. The UAE’s economy is holding steady and expanding across multiple fronts. Company formation continues to rise, banking remains stable, trade is growing, and new agreements are opening up new markets.
Our comprehensive services are designed to support you every step of your business journey in the UAE:
- Company Formation: We guide you through all aspects of setting up your company, whether in a free zone or on the mainland, ensuring you choose the best option for your business.
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- Accounting: Our team ensures your business stays compliant with local financial regulations, which is crucial for maintaining good standing in Dubai’s business community.
- Tax: We help manage Dubai’s tax environment, ensuring your business remains compliant while optimizing your tax position.
- Compliance and AML: We help ensure your business remains compliant with UAE laws and regulatory requirements while assisting in the implementation, maintenance, and training of AML (Anti-Money Laundering) procedures in line with national and international standards.
- Business Consulting: Leveraging our deep understanding of Dubai’s market, we provide valuable insights and help you develop effective strategies to succeed.
Visit our services page to learn more about everything we do.
