Thursday 19 November 2015

Soft landing projected for the UAE amid declining revenues | GulfNews.com

Soft landing projected for the UAE amid declining revenues | GulfNews.com:

"A decline in oil prices for more than 17 months have resulted in a sharp contraction in government revenues across the GCC, with many countries facing the prospect of economic slowdown and rising fiscal deficits, according to Bank of America Merrill Lynch.

But the degree of impact varies from country to country, the bank added. In the region, the UAE is better positioned to deal with the current situation as it holds substantial reserves and the economy is relatively more diversified than its GCC peers, said Jean-Michel Saliba, Mena (Middle East and North Africa) economist, Bank of America Merrill Lynch.

“In our view, the UAE economy is likely to soft land this year. The near-term direct impact of lower oil prices on UAE is more muted than for GCC peers. However, the indirect impact through lower regional and domestic liquidity, real estate, external sector and indebtedness would be more pronounced if oil prices remain low for long,” said Saliba."



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