According to the quarterly review report issued by the Central Bank.

“Credit non-payment risk” for the Abu Dhabi and Dubai governments is the lowest in the Middle East

“Central”: The premiums for credit default swaps have decreased around the world.

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In its recent quarterly review report, the Central Bank confirmed that the premiums for credit default swaps for the Abu Dhabi government decreased by 1.8 basis points, to reach 42.9 basis points, while the premiums for credit default swaps for the Emirate of Dubai decreased by 14.3 basis points, to reach 93.5 basis points, at the end of the second quarter of 2021, making the “credit default swaps premiums” for the governments of Abu Dhabi and Dubai the lowest in the Middle East and Africa.

According to international financial standards, the premiums for credit risk swaps are the premiums paid by lenders to insure against borrowers’ default, noting that these premiums witnessed a further decline globally during the second quarter of 2021, compared to their levels recorded in 2020, as a result of Expand the easing of restrictions related to the emerging coronavirus (Covid-19) pandemic.

And the “premiums for credit default risk swaps” had reached high levels, as a result of the conditions imposed by the pandemic on all countries.

It is noteworthy that the positive indicators shown by the "credit risk swaps premiums" for each of the governments of Abu Dhabi and Dubai were supported by a strong return to economic and commercial activities in the country, most of which returned to record growth rates that preceded the "Covid 19" pandemic.

With continued activity in all sectors, a further decline in the “credit default swaps premiums” for the governments of Abu Dhabi and Dubai is expected until the end of 2021.

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