The United Arab Emirates is a stable country in terms of politics and economics but has been affected by repercussions from the Qatar blockade and OPEC’s quota caps.
Economic risk (MEDIUM): The economy looks set for a sustainable 3% growth rate. The decision by the two largest emirates to inject fiscal stimulus reduces the risk of a deeper downturn.
Political risk (MEDIUM): There is little sign of a likely end to the diplomatic dispute between the UAE and Qatar, given the latest legal action taken by each side.
Financial risk (LOW): Large foreign asset reserves and a fiscal surplus will protect the UAE from falls in export revenues as the government looks to eliminate public deficits by 2020.
Commercial risk (MEDIUM): The UAE is rated the 13th best investment destination by UNCTAD. A new investment law should reach the statute books by the final quarter of 2018.