DUBAI: Euromoney has considered the UAE among the safest countries in the Middle East and North Africa (Mena) region as the country has made a considerable leap in the rankings in the magazine’s index of the risks of countries for the fourth quarter of last year.
The UAE jumping five places to 31st out of 185 countries round the world as a result of its points rising to 66.21 by the end of December 2012 out of the full mark of 100 points.
The magazine, which raised the UAE back into tier two, the safest of the Mena sovereigns, said on its website that the UAE remains attractive and offers many positive elements including low-risk perceptions seen in the scores for government finances and non-payments/repatriation, the infrastructure — especially in Abu Dhabi and Dubai after years of investment — the stability of the government and the currency, the dirham, which is fixed to the dollar.
The magazine also relied on Moody’s sovereign rating of the UAE, which stood at ‘Aaa’, one of the highest sovereign ratings.
Still, Gulf safety, was the main reason for the favourable position of the Mena region last year, in comparison with other parts of the world such as Asia, Latin America and the Commonwealth of Independent States, the magazine said.
In measuring the risks, the magazine depends on the economic, political and structural conditions of each country. These include the infrastructure, demographic changes and labour market and industrial relations.
Meanwhile, the magazine said five countries in the Mena region — Egypt, Iraq, Libya, Yemen and Syria — remained largely out of bounds for investors and traders, given the ructions caused by their domestic problems, foreign policy risks and other associated economic and political factors.