A Donald Trump presidency in the United States could have far-reaching ramifications for personal finance in the Gulf, according to the financial experts at compareit4me.com, a financial comparison site.
With the controversial Republican nominee victorious in this week’s United States Presidential Election, markets around the globe have tumbled – $3 trillion has been wiped off the value of global stocks.
At the time of release, the United States dollar, which many of the Gulf’s currencies are tied to – had fallen by 3% against the Japanese yen and by 2.1% against the euro.
According to Jon Richards, CEO at compareit4me.com,
the short-term ramifications of the market plunge is that UAE residents will see their dirhams decrease in value against other currencies. However, in the medium term, he said, it could affect UAE residents’ ability to secure credit.
“The problem is that no-one knows what’s going to happen – the idea that Trump would actually be elected was unthinkable before Election Day, so there are no plans in place to deal with the fallout. Banks want more certainty when they give out credit, and until they get that, residents in the UAE may have a harder time securing loans, credit cards or mortgages.”
Samer Chehab, COO at compareit4me.com, says
Trump came out with mad policy ideas in the run-up to the election, and if he enacts any of them as President, it could spell bad news for American expats in the Gulf. For example, Trump’s idea of limiting Muslims’ access to the United States would be disastrous for US-Gulf relations – the Gulf countries could retaliate by making it more difficult for American citizens to travel in the region, or by placing credit restrictions on them.