The UAE is in discussions with the U.S. for a potential financial lifeline, as reported by the WSJ

(SeaPRwire) –   The United Arab Emirates has initiated discussions with the United States regarding a potential financial safety net should the conflict with Iran escalate and deepen the country’s crisis, as reported by the Wall Street Journal, which cited unnamed U.S. officials.

According to the report, UAE Central Bank Governor Khaled Mohamed Balama proposed the establishment of a currency swap line during meetings in Washington last week with Federal Reserve and U.S. Treasury representatives, including Treasury Secretary Scott Bessent.

The officials informed the Journal that Emirati leadership noted they have managed to evade the most severe economic consequences of the conflict thus far, though they may still require a financial contingency plan.

The WSJ noted that these talks highlight the UAE’s mounting concerns that the war could jeopardize its economy and its status as a global financial hub, potentially leading to a depletion of foreign currency reserves and an exodus of capital. The Journal added that Emirati officials have not yet submitted a formal request for a swap line.

The ongoing conflict has damaged the UAE’s energy infrastructure and disrupted oil exports via the Strait of Hormuz, severing a vital source of dollar revenue.

In a Sunday appearance on ABC’s This Week, Reem Al Hashimy, the UAE’s minister of state for international cooperation, stated that the nation has been targeted by over 2,800 missiles and drones since the commencement of the U.S.-Israeli war with Iran on Feb. 28.