United Arab Emirates 

United Arab Emirates country policy

Policy established 20 December 2011

• The country ceiling is 1500 mln euro
• Early warning signal 1150 mln euro
• - of which was used as at 2012-02-29 599 mln euro

Country class: 3

Abu Dhabi: geen beperkingen; Dubai: particuliere kopers: case-by-case; overheidskopers: garantie van de federale overheid VAE, van de overheid van Abu Dhabi, ILC of bankgarantie.(onvoorwaardelijk.
andere Emiraten: case-by-case

Overheidsdebiteuren in Ajman, Fujairah, Ras-al-Khaimah en Umm-al-Qaiwain: onherroepelijk accreditief, bankgarantie, betalingsgarantie Minister van Financiën VAE of centrale Bank VAE

Abu Dhabi: no restrictions; Dubai: private buyers: case-by-case; public buyers: G'tee federal government UAE or government Abu Dhabi, ILC or bank guarantee (unconditional); other Emirates: case-by-case

Public buyers in Ajman, Fujairah, Ras-al-Khaimah en Umm-al-Qaiwain: ILC, bank guarantee, g'tee MoF UAE or central bank UAE.

United Arab Emirates country facts

Atradius Dutch State Business Economic Research
Country Report last updated :  27 Oktober 2011   
Country :  UNITED ARAB EMIRATES 

Political Situation

Stable

Head of state
The ruler of Abu Dhabi: Sheikh Khalifa bin Zayed al-Nahyan.

Form of government
The Supreme Council of Rulers, comprising the unelected seven Emirs. The Federal National Council of 40 members only acts as an advisory body.

Internal Economic Situation
Recovered From The 2009-Recession

General situation
The economy is totally reliant on the hydrocarbon sector. After the 2009-recession, moderate recovery balancing between higher oil prices/production and public sector measures to reduce state spending on large-scale projects. In Dubai solid growth in trade, retail sales and tourism in 2011 is more than compensating for the retrenchment in the construction/real estate sector. After the severe drop since their peak in 2008 (>-50%), prices on this market are gradually bottoming out. UAE-inflation has reached a low of 0.1% in Sept 2011; a very extensive subsidy system is disguising the real inflation pressure. The takeover of the Dubai Bank by the Dubai government was urged because of heavy losses in 2009/’10 after the debt restructuring of Dubai’s government-related entities (GRE’s). Despite these problems, the banking sector is well capitalised. 

 
External Economic Situation
Very Strong

Main sources of foreign exchange
Oil and gas (32%), re-exports (45%).

Main foreign markets
Asia (32%), Middle East (11%) and EU (11%).

Main expenses of foreign exchange
Consumer goods (53%), capital goods (36%).
 
Balance of payments 
Higher oil prices and exportvolume have increased the already large trade and current account surpluses. Increased service income due to tourism and financial services, hit by unrest in Bahrain, and the huge overseas assets. But also substantial private remittance outflows.