The UAE has retained its status as the lowest-risk country in the Middle East and Africa (MEA) region for the first quarter of 2023 compared to the previous quarter, according to GlobalData Regional and Global Risk Index (GCRI).

Saudi Arabia maintained its third rank in the GCRI’s lowest-risk MEA nation top 10 list, followed by Qatar and Kuwait at fourth and fifth regional ranks, respectively. On the other hand, Bahrain maintained its ninth position on a regional level.

The GCRI risk score in the MEA region has increased continuously for six quarters until Q1 2023, signalling a “deteriorating situation”, said London-based data and analytics firm GlobalData.

Factors such as unstable growth, subsidies, and state-owned enterprises operating at a loss, along with external challenges such as interest rate hikes and price surges, continue to put pressure on public finances in low and middle-income countries, except for the GCC, it added.

Given the region’s rich resources, GlobalData said economies needed to prioritise attracting higher investments, as they can significantly contribute to overall economic advancement.

The risk score for the MEA region rose slightly from 54.3 out of 100 in Q4 2022 to 54.4 in the Q1 2023 update, reflecting the current economic and financial landscape. 

(Editing by Seban Scaria seban.scaria@lseg.com)