- The short-term effects of the market plunge is that UAE residents will see their dirhams decrease in value against other currencies.
According to Jon Richards, chief executive at compareit4me.com, the short-term ramifications of the market plunge is that UAE residents will see their dirhams decrease in value against other currencies.
However, in the medium term, he said it could affect UAE residents' ability to secure credit."When markets are jittery, it's always bad for securing credit - and the shock news that Donald Trump has been elected president of the United States has caused severe market turmoil. Banks in the Middle East could respond to this news by tightening their credit approvals until they work out how the global economy is going to go once Trump is in office," he said.
He said the problem is that no-one knows what's going to happen - the idea that Trump would actually be elected was unthinkable before Election Day, so there are no plans in place to deal with the fallout.
"Banks want more certainty when they give out credit, and until they get that, residents in the UAE may have a harder time securing loans, credit cards or mortgages," he said.
Samer Chehab, COO at compareit4me.com, added that expats in the UAE could find themselves in a tricky position; in particular, he said American expats may find life more difficult once the outspoken business tycoon takes his place in the Oval Office.
"And who knows what might happen if American business interests are threatened in the region? There are plenty of American companies in the Gulf employing tens of thousands of American expats. What happens to those jobs if the business relationships between the US and Gulf countries turn sour? It's definitely worrying, so we'd advise American expats to put any big spending plans on hold until it's clear that their ability to work in the Gulf is safe."
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