Picture used for illustrative purposes.

Gulf Today, Staff Reporter

The UAE retained its position as the least risky country in the Middle East and Africa region, for the first quarter of 2023 compared to the previous quarter, according to the regional and global risk index issued by Global Data, which is based in London.

The index showed an increase in the degree of risk in the Middle East and Africa region, continuously for six quarters until the first quarter of 2023, which indicates a “deteriorating situation,” according to Global Data.

Saudi Arabia maintained its third rank in the list of the ten lowest-risk countries in the Middle East and Africa, followed by Qatar, fourth, Kuwait. fifth, while Bahrain maintained its ninth position.

The risk score in the Middle East and Africa region increased slightly from 54.3/100 in the fourth quarter of 2022 to 54.4 in the first quarter update of 2023, reflecting the current economic and financial landscape.

Factors such as unstable growth, subsidies, and loss-making state-owned firms, along with external challenges such as high interest rates and sharp price hikes, continue to put pressure on public finances in low- and middle-income countries, with the exception of the GCC.

The index is a unique model for rating countries' risks, and determines the current and future levels of their risks, by evaluating various qualitative and quantitative factors.

The index was formulated to help companies prepare their global business strategies, based on historical developments in the economy and their future expectations.