Key Opportunities/Drivers?? The UAE benefits from its strategic importance in the GCC region, and of the strategicimportance of the region to the world.?? The political uncertainty in much of the Middle East has left the Emirates untouched, and,consequently, it is seen as an attractive safe haven in the region. In particular, the ongoingpolitical turmoil in Bahrain should serve to benefit the UAE, especially Dubai, given that it hasbeen a key competitor of Bahrain in the financial services and tourism industries.?? The government has undertaken vast improvements in transport infrastructure over the last fewyears. Further, it has announced over US$45bn of future transport infrastructure projects. Theseprojects, especially the US$11bn Union Railway project, will connect all the emirates and leadto further integration, and increase the UAE?s attraction and competitive advantage.?? Demand for real estate will increase as the economy improves, population figures rise andtourism increases.Key Risks To Outlook?? Real estate prices across the board throughout the Emirates are falling and have further to fallbefore bottoming out.?? There is still a vast oversupply of space across the board, and throughout the Emirates.?? There is a lack of liquidity, meaning a lack of availability for project finance, especially inDubai. Weak credit also means that a pronounced recovery in non-hydrocarbon sector growthappears unlikely at this stage.?? There are ongoing concerns about Dubai?s lingering debt repayment schedule. Any further debtrestructurings by major government related entities (GREs) would do little to inspire confidencethat the UAE's financial troubles are now firmly in the past.?? Political unrest and terrorist attacks elsewhere in the Middle East have caused a reduction in thenumber of tourists visiting the region. Tourism has continued to thrive in the UAE, but this couldchange if political turmoil or terrorism threatens t

U.S. authorities Thursday charged firms in France and the United Arab Emirates for conspiring to export components for attack helicopters and fighter jets to Iran without a license.