Dubai: Joe Biden is set to become the 46th president of the United States after a nail-biting wait for the US election results. With Biden securing 290 electoral votes ahead of the 270 seats required for the win much of the suspense and drama has ended and the world is ready to accept the Biden presidency.
Reacting to the outcome of the US election results, UAE business leaders and analysts expressed optimism on a new era of strong business relations between the US and UAE.
Founder and chairman of Danube Group, Rizwan Sajan:
“That business ties between the US and UAE will continue unabated, with minimal disruption. The best thing about the relationship is the consistency as both countries’ ideology and ethics correspond when it comes to business and peace. I reckon that both nations are going to keep the status quo in regard to business and work towards contributing to each other’s economy.”
Vijay Valecha, Chief Investment Officer at Century Financial:
“Due to its status as the largest economy of the world, US elections do have its ramifications. More so, for GCC nations, due to the debate around clean energy that is happening in the current election. A Joe Biden Presidency will be positive in the short term on account of a large stimulus program as well as infrastructure investments which can boost energy consumption and economic growth.”
Linus Benjamin Bauer, founder of Bauer Aviation Advisory:
"The presidential candidate Biden has a little more to say on aviation in general but it is mainly wrapped up in environmental proposals. For instance, his ambitions for intermodal transportation methods (e.g. rail) could undermine domestic air travel and thus have a negative impact on UAE carriers’ current and future partnerships with US carriers (e.g. regional hybrid carriers JetBlue and Alaska Airlines)"
Jerry Chiang, analyst from Rystad Energy:
"Biden could help to de-escalate trade tensions in China and elsewhere, and may provide a more predictable, moderating influence on global issues and economies in the Middle East. Biden’s previous discussions on continuing American energy independence and focus on green energy may not necessarily lend well to increased reliance on Gulf crudes as a policy matter. Normalized relations with countries like Iran under Biden could open up more opportunities for participation by US firms and other actors.
Anita Yadav, CEO of Global Credit Advisory Ltd.:
"Markets abhor uncertainty. The fact that there is a clear election result in itself is a good thing. That said, president Joe Biden's policies are yet to be tested and do leave an element of uncertainty which will keep markets slightly anxious in the short term. Direct impact on the UAE from the US election is mainly through the impact of the election result on the US economy and therefore on oil prices as well as on strength of the US dollar given the currency pegs in the region. President Biden is seen to be slightly more socialistic than Trump. That in turn may mean more taxes and higher fiscal stimulus in the US which in turn will probably cause a slight weakening of the dollar. Dollar weakness would be good for the UAE as Dirham assets will become more attractive to international investors. Also, Biden's presidency may be less confrontational on Chinese trade wars which in turn may be good for the global economy and therefore support higher oil prices.”
Scott Cairns, MD, Creation Business Consultants:
"Joe Biden's presidency will lead to a redirection towards green energy and a push away from O&G - leading to a drop in oil prices. Tech in the UAE and GCC will be in high demand especially for renewable energy. We should see a warming of relations with Canada, the EU and Australia. China relations will remain difficult, prompting businesses to move from HK to safer havens such as the UAE."
Anna Tutova, CEO of crypto consultancy Coinstelegram:
"Biden doesn’t seem to be a supporter of cryptocurrencies, but his supporters hope that he will lead many tech reforms. UAE is much more ahead in terms of blockchain and crypto adoption than US. If Biden’s administration implements more supporting regulations on crypto, it will impact only positively in terms of crypto adoption by other countries."
Cyril Widdershoven, founder at consultancy Verocy:
"Biden’s approach to US shale oil and gas, and possibly conventional too, could be a major boost in the coming years for the call on OPEC/GCC based oil production. US will be rejoining Paris Agreement, which will push for more implementation of energy transition, and could mean two things: more investments and need for solar, wind and other renewable technology, where maybe GCC investments and production could assist."