The British research group "The Economist Intelligence Unit" revealed that the risk assessment in the UAE has been stable at positive levels. EIU granted UAE a BB credit rating in terms of sovereign stability, currency stability, banking sector, political risks and economic structure.
According to the agency, the pandemic had its negative effects, but the rich base of wealth and sovereign assets, in addition to the UAE's easy access to low-cost financing from global financial markets, helped alleviate pressures on the state's external reserves, and helped to maintain good and comfortable coverage of imports, and also contributed to reducing pressure on the local currency.
According to the assessment of sovereign risks, the huge financial buffers of the UAE, according to the agency, have contributed to alleviating the severe consequences of the "Covid-19" pandemic on the economy, on levels of consumer demand and on global oil prices.
At the level of the banking sector, the agency indicated that the pandemic had undoubtedly had an impact on the level of bank profitability. It also led to an increase in the level of non-performing loans to total loans. The group accords a “BB” rating in terms of the stability of the banking sector.
The group emphasized that the UAE enjoys political stability with high government effectiveness, which is clearly reflected in the speed and strength of its response in the face of the "Covid-19" pandemic, in addition to the speed and effectiveness of the distribution of the vaccine and the vaccination program, and pointed out that the return of relations with Qatar contributes to strengthening stability in the region.
Source (Al Khaleej Emirates Newspaper, Edited)
