UAE - UAE: Risks Are High Despite Steady Economic Expansion

• UAE is an around $44 million fund with a portfolio cramming 32 United Arab Emirates equities from the MSCI All UAE Capped Index.
• The Emirates' economy is growing at a healthy pace, with inflation kept at bay.
• The dirham is pegged to the U.S. dollar, so more interest rate hikes mimicking the Fed's suit seem inevitable.
• I appreciate the fund's low correlation with the U.S. market, together with a seemingly adequate valuation with a P/E of ~14.6x.
• Still, there are weaknesses that weigh on the overall profile and make UAE only a Hold.

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