• 1-800-526-8630U.S. (TOLL FREE)
  • 1-917-300-0470EAST COAST U.S.
  • +353-1-416-8900REST OF WORLD

Country Risk Service United Arab Emirates Updater

  • ID: 2101604
  • July 2015
  • Region: United Arab Emirates
  • 20 Pages
  • The Economist Intelligence Unit

The sovereign risk rating remained at BBB in April, supported by progress made in debt restructuring since the Dubai debt standstill in 2009 and by large sovereign wealth fund assets. Nevertheless, debt-financing needs continue to weigh on the sovereign risk rating and lower oil prices in 2015-16 are negative for the fiscal balance, export revenue and economic growth.

The UAE dirham will be susceptible to fluctuations in the US dollar, to which it is pegged. The strengthening dollar raises the question of whether the peg will undermine competitiveness, but there is little risk of the dirham being de-pegged. The oil price slump will erode the previously large current-account surplus in 2015-16.

Banks' profits picked up strongly in 2013-14, with slower growth in provisioning for non-performing loans and faster loan growth. But the outlook for banks is not without challenges, owing to still high debt exposure to government-related entities; tighter domestic lending regulations initiated by the Central Bank; and the impact of lower oil prices on liquidity and economic activity.

Note: Product cover images may vary from those shown

Country Risk Service United Arab Emirates Updater

Risk assessment
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk

Definitions
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Overall country risk

Central scenario for 2015-19: Political stability

Central scenario for 2015-19: Election watch

Central scenario for 2015-19: International relations

Central scenario for 2015-19: Policy trends

Central scenario for 2015-19: Fiscal policy

Central scenario for 2015-19: Monetary policy

Central scenario for 2015-19: Economic growth

Central scenario for 2015-19: Inflation

Central scenario for 2015-19: Exchange rates

Central scenario for 2015-19: External sector

Key risk indicators

Ratings summary

Quarterly indicators

International assumptions summary

Economic structure

Public finances

Exchange rates, interest rates and prices

Financial sector

Current account

International liquidity

Foreign payment and liquidity indicators

External trade

External financing requirement

External debt stock

External debt service

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

RELATED PRODUCTS

Our Clients

Aol, Inc. Accenture PLC. Unilever N.V. Nestle S.A. KPMG Roland Berger Strategy Consultants