The United Kingdom’s historic decision to leave the European Union has triggered panic in and shocked global markets as the sterling fell to its lowest value since before 1985. The sterling tumbled, the Prime Minister announced that he will step down and the UK’s FTSE 100 stock index lost 3 percent of its value that day.
Own a business in the UAE and wondering how you might be affected as a result of Britain’s shocking exit from the EU?
There’s no need for immediate panic for Brits in the UAE. But, we won’t blame you for feeling jittery, so with no further ado, here are some of the immediate consequences of Brexit for the UAE:
The good news is that there has been limited interconnectedness between the UAE and UK financial systems. The UAE dirham is pegged to the US dollar and there are only few areas through which instability of and uncertainty about future UK and EU relations could affect the UAE economy. So, business-wise, the UAE seems quite well-equipped to handle the Brexit shock.
Every change brings with it opportunity as well as challenges. No one knows quite how this will all pan out, so brace yourself.
And remember the popular British meme:
Henri was born and raised in Lebanon and studied at University of Saint Joseph. He is an avid fan of extreme sports and RC car racing. He is fluent in French and Arabic, he has traveled extensively throughout the region and Europe for both for leisure and business.