United Arab Emirates: Selected Issues

International Monetary Fund

No 2025/328, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper examines United Aram Emirate’s (UAE) economic and financial resilience. The economy has demonstrated broad resilience to global policy changes, including US dollar and interest rate movements, and volatility surges. Even though closer global integration has increased exposure to shifts in external conditions, the UAE has continued to demonstrate strong financial and economic resilience. This includes broad resilience to external shocks, including movements in the US dollar, interest rates, and global volatility, with limited pass-through to domestic activity. Financial markets and capital flows have been less affected by global shocks than the regional peers and other emerging markets, reflecting strong investor confidence. The transmission of US monetary policy to domestic credit and growth has been limited in recent years, particularly during tightening cycles which coincided with periods of ample liquidity in the UAE. The impact of global and regional uncertainty on trade and tourism appears contained, with resilience further supported by expanding Comprehensive Economic Partnership Agreements and ongoing diversification efforts.

Keywords: UAE economy; AI in the UAE; NON-HYDROCARBON productivity; fiscal policy objective; staff team; Fiscal risks; Oil prices; Total factor productivity; Global; Middle East; Central Asia; East Asia (search for similar items in EconPapers)
Pages: 39
Date: 2025-12-08
New Economics Papers: this item is included in nep-ara
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=572402 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2025/328

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().