UAE ABS Market Outlook

the uae abs market is expected to remain resilient in the medium to long term, with an outlook of steady growth. this is due to the country’s consistent economic growth, diversified business activities, strong regulation and oversight from the government, and the continued availability of relatively low borrowing costs. according to the central bank of the uae, total asset-backed securities (abs) issued in the uae in 2017 was aed 77.3 billion. the outlook for the sector looks positive, with increased demand for mortgage and consumer loans, increased liquidity in the markets, and favorable borrowing rates. demand for asset-backed securities is expected to remain high, as companies and investors are attracted by their attractive returns and low risks associated with these investment instruments. additionally, the uae’s economic diversification is expected to continue, which is likely to increase demand for credit and abs. the uae banking sector is well regulated and well-capitalised, and is expected to remain a source of strong demand for abs. additionally, with the increased number of foreign financial institutions operating in the uae, and a liberalised foreign exchange framework, the market is expected to remain attractive to foreign investors. federal government regulations have helped to ensure a competitive environment and increase consumer confidence in the abs market. the central bank of the uae has been closely monitoring the sector in terms of risk management, transparency, and reporting. furthermore, the presence of well-reputed credit rating agencies helps to provide investors with confidence in the reliability of investments. in conclusion, the outlook for the uae abs market is expected to remain positive in the long term. with a strong regulatory and oversight environment, continued diversification of the economy, and favorable borrowing costs, the sector is expected to remain attractive to investors and issuers alike. the economic environment of the uae, coupled with government oversight, is also expected to continue to provide a secure and viable investment option in the coming years.