Bonds and Stock Markets Uncertainty in the United Arab Emirate

Abstract

The Financial sector in the UAE is one of the largest industries in the region, but there remains a research gap in research on bonds and stocks in the UAE and how they affect the economy. This study focused on establishing the uncertainty of bonds and stock in UAE. The research was guided by one general objective and three specific objectives. The general objective guided the researcher in determining the uncertainty of stock and bonds market in the UAE and establishing the potential causes of the uncertainties. The specific objectives that guided the researcher were accessing the relationship between the volatility of stocks and bonds in the UAE and the main sources of uncertainty. The specific objectives also guided the researcher in analyzing the effects of the changes in uncertainty on bonds and stock on the economy of UAE. The study used both qualitative and quantitative research design. The data used in the study was collected from secondary sources. The researcher focused on secondary sources discussing Federal Competitiveness, the Dubai Financial Market, the Economic Intelligence Unit and the Federal Competitiveness and Statistics Authority. Information gathered from these sources focused on the Dubai Financial Market since this was the scope of the study. The findings of the research were presented using graphs and tables. The study concluded that there is no relationship between the volatilities of stock and bond market. The study also concluded that the uncertainty in stock and bonds in UAE affect the UAE economy by decreasing the investment of industries and expenditure of customers.