Based on statistics, as the UAE economy has grown through the years, the UAE dirham has also appeared stronger. In the last ten years, the UAE dirham was the strongest among all other subcontinent currencies of major countries. If you want to know how the UAE dirham will maintain its supremacy over the years, continue reading.
How will the UAE dirham retain its power during the next years?
As you might know, the UAE is popular as a multicultural country and home to thousands of expatriates. So, the UAE imports a lot of raw and finished goods products from different countries, because of this diversity of nationalities. Therefore, this region’s export prices from countries like Turkey, India, and Pakistan, which contribute primarily to major exports in UAE 80%, were reduced. As a result of this export price drop, Dirham gets stronger against other major world currencies. Totaly, the UAE Dirham is stronger than the Pakistani rupee, the Indian currency, and the Chinese Yuan.
How will the UAE dirham power affect the UAE economic features?
The Head of fixed income research at the renowned Emirates NBD Research, Anita Yadav mentioned that: “The US dollar – and consequently the dirham – has strengthened against the emerging market currencies this year and this does help in reducing the import prices. However, the total inflation contains several components such as housing and education bills that do not get impacted by import prices”.
Also, Yadav indicated that the current UAE inflation is 3.1%, but we expect it to reduce in the following months and cause a sudden boost in the currency value.
Thus, this robust improvement in Dirhams value is sure to open new trade doors for UAE and reap noticeable benefits for the region’s economy instead of its current economic forces.
Such strong currency value is yet another factor that contributes to making the UAE economy an ideal fit for investment. For example, you can choose to buy an UAE off-plan project or ready-to-move projects in the UAE. Whatever you want and wherever you choose, we are here in dxboffplan to find you the best property for sale based on your budget and interest. You can ask your questions from our professional online team 24/7 for free.