The sluggish Emirati economy faces new challenges

Significance

This partly reflects the February 16 decision of DP World to delist its shares, which dominated the Nasdaq Dubai, but also comes amid other troubling recent economic developments for the United Arab Emirates (UAE), including the continued decline in the Dubai and Abu Dhabi real estate markets and the mounting impact of COVID-19 coronavirus.

Impacts

• If successful, Expo Dubai could provide a short-term boost for the suffering real estate market and hospitality sectors.
• The natural gas find still needs realistic appraisal but might help the UAE move away from being a net gas importer.
• DP World’s removal from the Nasdaq Dubai will reinforce arguments for the creation of a unified UAE equities market.