Moody's credit rating agency revealed that the huge financial reserves of the United Arab Emirates would contribute to reducing the impact on its economy due to the sharp decline in global oil prices, which reached 60% since the end of last year.
The agency estimated the value of the UAE's reserves of liquidity at about $147 billion in exchange for financial obligations not exceeding $22 billion, which strengthens its financial position in the face of the decline in oil prices.
According to the agency, the UAE's success in diversifying the base of the economic growth contributed greatly to reducing its dependence on oil economically, which also contributes to reducing the economic impact of the sharp decline in oil prices.
The agency expects that the UAE will increase its oil production this year by about 8%, indicating that the UAE is one of the few oil producing countries that have the ability to raise production without the need for additional investment.
Moody's announced that the oil balance price in the UAE is the lowest at the level of oil producing countries, where it is less than $30 a barrel, and the balance price is the one at which the state’s budget stabilizes without a deficit or surplus.
Source (Al-Khaleej Newspaper-UAE, Edited)