The United Arab Emirates is a stable country in terms of politics and economics but needs to continue

to diversify further away from oil activities.

• Political risk (LOW): Strong government has ensured the country was not touched by the Arab

Spring but its spat with Qatar may raise tensions.

• Economic risk (MEDIUM): Diversification away from the oil sector so far has protected the UAE

against the impact of the fall in crude prices; Iran offers new export opportunities.

• Financial risk (LOW): Its large foreign asset reserves and fiscal surplus will protect it from falls in export

revenues and a slowing in credit growth. The status of GREs has raised question marks.

• Commercial risk (MEDIUM): The UAE is seen as a safe place to invest and has been praised by the

WTO. Business reforms under the IMF programme should improve commercial conditions.