A report by the British research group The “Economist Intelligence Unit” showed the stability of the UAE economy and gave it a sovereign risk assessment (BBB), indicating a positive surplus in the current accounts of the UAE, explaining that the short term financing requirements are large and may result in a limited deficit in the financial balance during the current and next years.
According to the report, a large part of the financial commitments to Dubai have already been paid in 2018, announcing the UAE's full ability to meet its financial obligations and financing the growth thanks to its huge sovereign wealth of assets which help it to cope with the consequences of the decline in world oil prices.
EIU gave the UAE a “BBB” rating in terms of currency stability, revealing the contribution of higher average oil prices and interest rates to increased foreign exchange earnings. At the level of the banking sector, it granted a “BBB” valuation. The group also gave the country a stable assessment “BB” of the economic structure due to the diversification of the economic growth base and efforts to reduce dependence on oil.
Source: Al Khaleej newspaper, Edited
