Why UAE residents don't have to worry about economic crises

Let me start with one of my favourite quotes by Francis Bacon: “Read not to contradict and confute, nor to believe and take for granted, nor to find talk and discourse, but to weigh and consider.”

The pandemic taught us that the world tends to move quickly when new crises take centre-stage. The matter I want to highlight today is the United States’ Federal Bank’s strategies to counter inflation — and the effects they are having on developing and under-developed nations. Although some experts are concerned that a US interest rate hike could lead to a worldwide economic crisis, it’s important to note that economic forecasts are never specific, and many different factors can influence the global economy.

Away from all that, consider yourself lucky if you live in the UAE — because you don’t need to worry about economic crises. For long, the UAE has understood that no country is free of financial challenges, and our government has taken several measures to decrease the impact of the US Federal Reserve’s interest rate hikes on our economy.

These measures include maintaining the currency peg to provide stability and predictability for businesses and investors in the country, diversifying the economy, and insulating the country’s economy from the negative impacts of fluctuations. In addition, the UAE government has worked to manage its debt levels and maintain a strong credit rating, which can help to ensure that the country can access affordable borrowing if needed in the face of changes in global interest rates. Also, the UAE government has invested heavily in infrastructure projects, which can help to attract international businesses and make the country more resilient in the face of economic shocks.

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