Potential Impact of New Tariffs being Imposed by Donald Trump on the UAE and GCC – Saxo Bank

Hamza Dweik, Head of Trading and Pricing (MENA), Saxo Bank“The imposition of tariffs has the potential to significantly impact the UAE and GCC countries, even if they’re not directly targeted. Given their reliance on oil exports, any global economic slowdown triggered by these tariffs could lead to a drop in oil prices, straining their economies. Additionally, the UAE’s currency peg to the US dollar means that fluctuations in dollar value can directly influence purchasing power and inflation rates, particularly if imported goods become more expensive. Sectors like electronics, automobiles, and construction may feel the pinch as costs rise, ultimately affecting consumer spending and possibly pushing inflation upward. To navigate these challenges, the UAE and GCC countries might consider diversifying their trade partnerships and focusing on unaffected regions, all while working to reduce their oil dependence for long-term stability.”

Last Updated on 3 days by News Desk 1