Price of oil and gas dubai 2016
Nevertheless, banks are still well capitalized and we would expect the government to claw back SWF assets overseas, in case of liquidity or funding problems of banks.
However, the anticipated rate hike by the Fed would have to be followed by UAE monetary authorities. Although the higher interest rate would help to somewhat reduce the relatively fast increasing inflation, the appreciation of the Dirham could hurt competitiveness of the non-oil sector, making tourism more expensive and pushing up real estate prices.
However, de-pegging the Dirham is not an option. Although oil revenues and the non-oil sector would benefit from a depreciation in the short term, investors would be spooked, which could possibly trigger substantial capital flight and cause inflation to accelerate at an even higher pace.
From a political standpoint, the UAE is one of the most stable Gulf states, with no history of terrorism, homegrown tendencies towards extremism or political disputes whatsoever. Meanwhile, the UAE will continue its careful balancing act in managing political ties with both Saudi-Arabia and Iran. Resilient, but facing challenges. Country Risk Report, Q2. The UAE consist of seven emirates. Abu Dhabi is the largest and most powerful, oil-based traditional emirate. Dubai, which lacks oil resources, has a more modern atmosphere and depends on international retail, tourism and financial services.
The other five emirates have always played a minor role. For almost four decades, oil and global finance have driven the UAE's economy. The business environment is reasonably attractive, characterized by high-quality infrastructure, a flexible labour market institutions and beneficial taxation regime.
But the state also has substantial progress to make, with investment in education and training of Emiratis as well as decreasing fiscal vulnerability as the most prominent areas of improvement.
Historically, the UAE has one of the most stable political systems in the wider Arab region. Even though the political system is inflexible and characterized by an almost complete lack of political freedom, there have been no reports of imminent upheaval since Although Khalifa bin Zayed still is president of UAE, crown prince Mohammed bin Zayed has been consolidating his power ever since the president fell ill in Did you like this article? Could you maybe inform us why you do not like this article?
Could you maybe inform us why you like this article? Do you want us to respond to your remarks? If so, please leave your email address below. As the seventh largest petroleum producer in the world, the United Arab Emirates UAE economy has long been coupled with the ebbs and flows of the hydrocarbon industry.
The plummeting global oil prices has thus affected the oil-rich nation, forcing the country to curb spending, oil companies to downsize, and prioritize and scale back projects. With the oil and gas industry in dire straits, UAE has taken steps to diversify its economy to cushion and remain resilient in face of sustained lower oil prices. Production With the proved oil reserves ranked seventh globally, the UAE is a major oil producer and exporter.
In January of , UAE produced 3. Oil production for February of was 2. January and February average was 2. Some of UAE crude oil streams includes Murban, a lightweight and sweet low sulfur crude oil, and Das, a blend of two existing streams, Umm Shaif and lower Zakum crude oil streams. The oil rich nation plans to increase crude oil production to 3. According to the U.