The United Arab Emirates is a stable country in terms of politics and economics but has been affected by repercussions from the Qatar blockade.
Economic risk (MEDIUM): Diversification away from the oil sector so far has protected the UAE against the impact of the fall in crude prices but growth forecasts have been pared back.
Political risk (MEDIUM): The UAE’s alliance with Saudi Arabia has cast doubt over the future of the Gulf Cooperation Council just as their spat with Qatar has raised tensions.
Financial risk (LOW): Its large foreign asset reserves and fiscal surplus will protect it from falls in export revenues and a vibrant and prudent banking sector continues to support economic development.
Commercial risk (MEDIUM): The UAE is seen as a safe place to invest and has been praised by the WTO. The new tax procedures will improve clarity within the business tax system.