#UAE stable while most emerging markets are set to incur revenue losses: Moody's | ZAWYA MENA Edition

UAE stable while most emerging markets are set to incur revenue losses: Moody's | ZAWYA MENA Edition:

The UAE has ample capacity to adjust to new economic realities while most emerging market sovereigns are set to suffer long-lasting loss of revenues owing to the ongoing coronavirus crisis, according to a new report.

Only the governments will have an ability to boost credit growth, and both Abu Dhabi and the UAE have Aa2 stable outlook on “fiscal policy effectiveness,” Moody’s Investors Service said in its latest report. 


The “fiscal policy effectiveness” is a combination of a government’s capacity to adjust to a change in economic circumstances by raising additional revenue and an overall assessment of a sovereign's institutions and governance strength.

Other countries are not in a privileged state as the UAE as majority of emerging markets (EMs) are likely to record budget deficits in 2020 and face constraints in cutting spending amid the pandemic, amplifying the importance of revenue generation, said the report, adding that EM fiscal revenue will stay below pre-crisis levels amid a slow and halting global recovery.