
United Arab Emirates Risk July 2018
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 decision by two emirates to inject fiscal stimulus reduces the risk of a deeper downturn.
Political risk (MEDIUM): There is little sign of a likely to end to the diplomatic dispute between the UAE and Qatar, given the latest legal action taken by each side.
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. New legislation replaces bank guarantees for private sector labour recruitment with a low-cost insurance policy that will reduce costs for employers.