Historical Information Since the discovery of oil in the 1950s, the UAE’s economy has been highly dependent on oil exports despite many diversification attempts undertaken by the government. Therefore, global oil crises directly impact both the macroeconomic climate in the region and microeconomic indicators within the UAE (Vohra 10). There have been two occurrences of oil-price fluctuations that made a significant impact on the UAE – economic recession of 2009, and oil-price decline in 2014 (Vohra 10). Decreases in oil prices directly impact the country’s budget – when the prices were steady, the state had a surplus in its budget (Vohra 13). In contrast, during crises, the amount of budget deficit became significant. Dirham, which is the UAE’s currency, has a substantial linkage with the US dollar, and the Central Bank of the UAE (CBU) plays a significant role in maintaining steady exchange rates to USD ( CB UAE ). One US dollar buys around 3.7 dirhams – this exchange rate has not changed for many years ( CB UAE ). Crude oil and other goods on the UAE market are also sold in USD, which makes the interest rates in the country be tied to the American market (Kerr). It also indicates that the CBU is unable to influence inflation in the country significantly. However, CBU’s expansionary and monetary policies have been steadily trying to keep low official interest rates and stable prices. UAE’s fiscal policies have also been supportive – shortly after the appearance of the 2009 recession, the government bought 10 billion dollars worth of bonds from Dubai to aid liquidity. The government has also been trying to delink its expenditure from oil-price fluctuations, and investments to other sectors have been the primary method (“Less Positive Outlook for the Banking Sector.”). The real estate sector, for instance, is considered a key to the economic growth of UAE, particularly Dubai, thus making the construction sector the primary client of banks – around 30% of loans are accounted to real estate companies (“Less Positive Outlook for the Banking Sector”). Despite the attempts of the UAE government to mitigate the consequences of recessions, certain sectors have not yet recovered fully. Real estate, tourism, and public finances are among the examples. In 2015, prices for residential property fell down by 12%, affecting the profitability (“Less Positive Outlook for the Banking Sector”). Much of the projects were put on hold and the majority of loans were restructured. Despite lower prices on real estate, not many people are willing to make acquisitions because lower oil prices led to a lesser amount of money in the hands of citizens (Kerr). The value-added taxes (VAT) on common goods, imposed by the government, also had a deteriorating effect – majority of the population had to cut their expenditure because of the VAT. Banking, while being considered the industry least affected by recessions due to higher revenues because of higher interest rates, are also expected to struggle because of continuous loan restructurings and lower quality of assets (Kerr). On a national scale, the situation is worsened by constant wars in the region and UAE’s spending on the military. These factors, along with the economy’s dependence on oil prices, make the UAE less attractive to investors today. Because the economic statistics in Dubai and other emirates are not