Political Stability Index

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UAE political stability index (-2.5 weak; 2.5 strong): The World Bank was used for the purpose of this research study, as it has provided political stability data for the UAE from 1996 to 2015 (United Arab Emirates Political stability - data, chart 1996-2015, n.d).The above graph displays data for only three years from 2012-2015, as five years is an appropriate set of data to look at from the year 2018, with this data placed in perspective, we can show a trend and predict what the political stability would look like in the future. The UAE was strong between 2012 and 2013 at approximately 0.87 points then; it decreased to approximately to 0.765 between 2014 and 2015. Due to the governments continuous efforts to battle corruption. The DMI…show more content…
“For the foreign currency control, the UAE has no restrictions or regulations on foreign exchange” (United Arab Emirates - Currency and Banking - IPR Country, n.d). This is good news for the foreign investor as there are no restrictions on the foreign exchange rate. As the result, UAE will attract more foreigners to invest within the country or have more foreigners to move to the UAE for work. Mubarak Rashid Khamis Al Mansouri, UAE’s Central Bank Governor, made a statement mentioning that “fixing and safeguarding the official exchange rate of the Dirham falls by law within the purview of the central bank’s board of directors, and that the policy of the fixed peg of the Dirham against the US Dollar will remain in place” (Nagrai, 2016). The UAE currency exchange rate had been fixed around 3.6725 per 1 US Dollar since 2000’s and will remain the same, as it has been stable in the economy for multiple years. Economic indicators highly recommend the government to keep the currency exchange rate at a fixed peg of the Dirham against the US Dollar since it is doing well. Furthermore, with the community not being democratic, the government will not change their decision on this system unless there is a boom in the economy. UAE is experiencing growth in the economy by having both imports and exports to rely on resources such as oil and gas. “UAE has seventh
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