Analysts see potential for UAE dirham growth tied to shifting trade patterns and regional integration
The head of Zenit Bank’s analytical department, Vladimir Evstifeev, suggests that demand for the United Arab Emirates dirham could rise as Russia pivots its trade flows toward Asia. This shift is expected to strengthen economic ties with the UAE and create opportunities for deeper financial engagement between the two economies. Market watchers note that the dirham offers broad access to a major regional economy while keeping exposure largely tied to the US dollar without additional sanction risk. Over many years, the dirham’s value against the dollar has been stabilized through policy choices and the UAE’s robust economic fundamentals, contributing to a perception of steadiness that could prove attractive in a transcontinental trade realignment. The prospect of closer relations between Russia and the UAE under Eastward trade reorientation may position the UAE as a pivotal hub for parallel imports, which, in turn, could elevate demand for the dirham inside Russia. This view reflects a careful balance between currency stability, regional cooperation, and practical trade needs. [citation]
According to a finance expert, establishing an accessible investment framework for the Emirati dirham would be a strategic move. A gradual approach is advised, given current market shares for this currency. In the initial phase, the dirham could account for roughly five to ten percent of a diversified currency portfolio, with the potential to rise to fifteen to twenty percent as payment and settlement infrastructure develops further. This approach allows for controlled exposure while market participants observe the evolution of cross-border payment networks and liquidity availability. [citation]
In a related context, historical movements in the ruble-dollar exchange rate have highlighted the influence of external market forces on currency values. For instance, the ruble had notable volatility in response to trading results on major exchanges, underscoring the importance of robust infrastructure, risk management, and diversified currency strategies within national and regional financial ecosystems. [citation]