Eurasia Grp Says UAE Faces "Fat Tail" Risk On Econ Crisis

The United Arab Emirates, the world's fifth-largest owner of oil reserves, faces growing political uncertainty from the effects of the global financial crisis, according to U.S.-based Eurasia Group.

The influential think-tank ranks the oil-rich emirates amongst a list of 10 states including Pakistan, Russia, Mexico and Argentina that could face a "fat tail" political crisis from the impact of the current economic downturn.

"The weakness of existing federal institutions and personalization in U.A.E. politics exposes Emirati leaders' inability to respond in unison to the current crisis," Eurasia Group said in the report entitled "Fat Tails in an Uncertain World."