The debt crisis in UAE :explaining the causes -

Abstract

This project investigates the causes that led the United Arab Emirates to fall into a very serious debt crisis during 2009. Several variables of interest are considered in order to test the effect of each variable on the total debt of the UAE. The ordinary least squares multiple linear regression is used. After several tests and adjustments, the significance of each variable is tested. This project concludes that the money supply variable (M1) was the sole variable that had an effect on total debt. This could be explained by the fact that the size of the debt demanded was too high for local banks to handle.