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 sustainable 3% growth. The rise in oil prices to a four year high will help the UAE drive through its diversification away from hydrocarbons.
Political risk (MEDIUM): The bilateral meeting between US President Trump and Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince, raises hopes of an end to the Qatar dispute.
Financial risk (LOW): Its large foreign asset reserves and fiscal surplus will protect it from falls in export revenues as the government looks to eliminate the public deficit by the end of the decade.
Commercial risk (MEDIUM): The UAE is rated as the 13th best investment destination by UNCTAD. It is focusing efforts on raising the use of arbitration in business disputes.