US President Donald Trump has said Washington is considering financial assistance for the United Arab Emirates, including a potential currency swap arrangement, as the ongoing conflict with Iran places mounting pressure on the Emirati economy.
Speaking to CNBC, Trump confirmed that discussions about a swap line are underway and described the UAE as a strong ally. He added that the United States would support the Gulf nation if economic conditions worsen, signaling a willingness to intervene financially if needed.
Meanwhile, the proposal reportedly emerged during recent meetings in Washington between UAE Central Bank Governor Khaled Mohamed Balama and US officials, including Treasury Secretary Scott Bessent. Emirati authorities are seeking a financial safety net to stabilize their economy amid prolonged uncertainty.
Furthermore, the conflict has disrupted critical energy flows. Iran’s blockade of the Strait of Hormuz and reported strikes on infrastructure have affected oil exports, a key revenue source for the UAE. As a result, investor confidence has weakened, raising concerns about the country’s position as a leading financial hub.
If implemented, a currency swap would allow the UAE to access US dollars at lower cost, helping maintain liquidity and strengthen foreign reserves during potential market stress. However, US officials remain cautious, noting that such arrangements typically support economies whose instability could impact the American financial system.
Additionally, regional leaders warn that recovery will take time even if hostilities end soon. Consequently, the war’s economic impact continues to ripple across Gulf economies, forcing governments to prepare for prolonged financial strain.
