Sunday 24 April 2016

UAE economy headed for soft landing amid low oil prices | GulfNews.com

UAE economy headed for soft landing amid low oil prices | GulfNews.com:

"The UAE economy is expected to weather the turbulence from low oil prices that resulted in decline in government revenues and budget deficits, according to Bank of America Merrill Lynch (BofAML).

“We continue to think that the UAE is headed for a soft landing, with a less pronounced cycle than in 2008. Challenges and downside risks are likely to increase if oil prices remain low. Macro buffers including adequate banking sector capital and liquidity, lower exposure to foreign bank funding, and lower build-up of debt and real estate-related leverage are likely to mitigate vulnerabilities, in our view,” said Jean-Michel Saliba an economist with BofAML.

BofAML’s assessment follows a recent report from Institute of International Finance (IIF) that said the UAE economy will sustain strong economic growth in 2016 despite the economic headwinds from prolonged slump in oil prices."



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