S&P leaves UAE's rating unchanged amid mideast conflict risk

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S&P leaves UAE’s rating unchanged amid mideast conflict risk

March 7, 2026

NEW YORK,— The United Arab Emirates maintained its sovereign credit rating at “AA/A-1+” on Friday, with a stable outlook, the global credit rating agency S&P Global said.

The decision comes as regional tensions escalate following major military strikes by the United States and Israel on Iranian targets.

Iran’s Supreme Leader, Ali Khamenei, was killed Saturday after the United States and Israel carried out their largest military strikes on Iranian targets in decades.

Tehran condemned the strikes as illegal and responded with missile attacks on Israel and at least seven other countries, including Gulf states hosting U.S. military facilities.

Iran also targeted locations across the UAE, hitting airports, hotels, and ports, disrupting critical parts of the Gulf economy.

S&P Global said the UAE’s strong fiscal position, large external buffers, and policy flexibility should allow it to withstand the effects of regional turmoil.

The agency added that it expects threats to key infrastructure to decrease in the coming weeks and a recovery to follow, supported by the UAE authorities’ solid balance sheet.

The UAE central bank governor reassured investors on Thursday that the country’s financial sector remains robust despite the conflict, which has plunged the Gulf state into its most serious crisis since the COVID-19 pandemic.

Still, S&P warned that continued Iranian military operations could weigh on economic growth and weaken the country’s external and fiscal performance in 2026.

Financial markets reflected the tension. UAE stock exchanges ended lower on Friday, extending losses as investors faced growing uncertainty over the potential for further escalation in the Middle East conflict.

S&P Global Ratings, part of S&P Global, assesses the ability of governments, companies, and financial institutions to meet debt obligations.

The agency assigns ratings ranging from AAA to lower grades, signaling rising credit risk. Investors rely on these ratings to evaluate the safety of bonds and other debt investments.

Changes in ratings can influence borrowing costs and overall market confidence.

(With files from Reuters)