Dubai, Sharjah more vulnerable to slowdown in non-oil sector: Moody's | ZAWYA MENA Edition:
The slowdown in the non-oil sector is likely to affect Dubai and Sharjah more than the UAE capital Abu Dhabi whose reliance on the sector is non-significant, Global ratings agency Moody's said in a report.
"Dubai and Sharjah's revenues are more vulnerable to slowing macroeconomic conditions, as their revenue bases are reliant on government fees, fines and to a lesser extent, tax revenues," said Thaddeus Best, a Moody's Analyst and the report's author.
"For Dubai in particular, lower growth and counter-cyclical fiscal policy are aggravating already elevated debt levels, despite the generally more cautious fiscal stance adopted by the authorities since the 2009 debt crisis," he added.
By contrast, Abu Dhabi is more insulated as its non-oil revenues are relatively small compared to hydrocarbons and investment income from the Abu Dhabi Investment Authority (ADIA), which comprise the vast majority of government revenues.
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