It may not be the next global recession but Brexit cannot be ignored in the region
For many, the events of the morning of June 24 were a rude awakening. A British exit from the European Union an outcome deemed inconceivable only hours before had become a reality.
The pound plunged to its lowest level against the dollar since 1985, global stock markets tumbled, British Prime Minister David Cameron announced his resignation and the political infighting that followed all but reflected a country divided. Some 51.9 per cent voted ‘leave’ to 48.1 per cent who voted ‘remain’.
Meanwhile, Gulf investors, many of which have invested heavily in United Kingdom assets, looked on nervously with no successor to Cameron expected until October and a lack of clarity surrounding the date and terms of Brexit.
In the Gulf Cooperation Council, governments moved quickly to dismiss concerns that their economies would be heavily affected.
Saudi Arabia said it had already made some adjustments to assets denominated in sterling and euros in anticipation of the vote. A move described as a “precautionary stance” by Saudi Arabian Monetary Authority Governor, Ahmed Al Kholifey.
“For the banking sector, we expect that the impact will be limited, because it is less exposed to the two aforementioned currencies’ movements,” he told the Saudi Press Agency.
Elsewhere, the United Arab Emirates said the affect on its financial institutions would be similarly small.
“Due to the limited interconnectedness between the UAE and UK financial systems, there are only a few channels through which uncertainty about future UK and EU relations could affect the UAE financial institutions,” the UAE Central Bank said in a statement.
Others too suggested the region had little reason to worry.
Denne historien er fra July 2016-utgaven av Gulf Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 2016-utgaven av Gulf Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Green lights
It hasn’t even been a full year that Stellantis, one of the world’s biggest auto companies, has been in existence. Still, its wheels are spinning furiously. Here’s what it has in store for the region
Purpose through corporate responsibility
Every organisation must deeply reflect about whether they are leaving behind a legacy or a liability, says Abdulaziz AlSowailim, EY MENA chairman and CEO
Analysing the layers of a coconut
When we have a sense of clarity as to our purpose in life, then we institute the correct practices and habits around us, and set realistic and achievable results
DUNES TO DOMINION
FOR A COUNTRY RICH IN TRADITION AND DRIVEN BY AMBITION, THE UAE’S JOURNEY DURING THE PAST 50 YEARS HAS BEEN UNPRECEDENTED. WHAT’S IN STORE FOR THE NEXT 50?
Building strong
International investors are boosting Dubai’s residential property market, which has rebounded strongly from the Covid crisis, writes Aarti Nagraj
CHASING THE AMERCIAN DREAM
FOR SHAI ZAMANIAN, THE US IS A LAND OF LIMITLESS POSSIBILITIES, AN AVENUE HE AIMS TO OPEN FOR FAMILIES WORLDWIDE VIA IMMIGRATION. HERE’S HOW HE IS BRINGING HIS GOAL TO FRUITION
OBITUARY: JOCELYN HENDERSON (1921-2021)
THE GRANDE DAME OF ABU DHABI – THE WIFE OF A FORMER DIPLOMAT – PASSED AWAY IN THE UAE CAPITAL AGED 100
THE DIGITAL DISRUPTORS
IN THE COMING YEARS, THE GCC IS EXPECTED TO PLAY A SIGNIFICANT ROLE IN SECTORS SUCH AS HEALTHCARE, MANUFACTURING, EDUCATION AND RETAIL, WHICH WILL HELP BOOST THE GROWTH OF ITS NON-OIL ECONOMY
Signed, sealed, delivered
Nicolas Baretzki, CEO of Montblanc, partnered with one of the world’s most recognisable luxury brands, Ferrari, earlier this year. Here’s where the partnership, and the German company as well, is headed next
UP, UP AND AWAY
AS THE FIRST IN-PERSON AIRSHOW TO TAKE PLACE SINCE THE OUTBREAK OF THE PANDEMIC, THE EVENT SAW SEVERAL DEALS ANNOUNCED
