Does Trump mean bad news for UAE dirham?

Close your eyes. imagine a scenario where Republican nominee Donald Trump is the leader of the so-called free world.

Would you - yes, you - want to invest your hard-earned money in 'that' America?
 
If you answered yes to that, then you, like Trump, are kind of in a minority right now.
Also read: Trump's name removed from Damac billboards in Dubai
 
For, a new survey of UAE expats by the Dubai-based Globaleye shows that respondents have been increasingly moving away from investments in the US dollar as Democrat candidate Hillary Clinton's lead over Trump narrows in the race for the White House.
 
Globaleye says that this risk-aversion is expected to continue up to the election on Tuesday, and beyond it, as the full ramifications of the result on the global economy are felt.
 
The strength of the USD is particularly important to those who earn in UAE dirhams as it is pegged to the dollar - and if dollar loses steam, the dirham suffers too.

 
"At the start of the year, we saw a lot of expats in the UAE moving into cash investments on the back of market volatility in China," said Globaleye Vice-President, Stefan Terry.
 
"We are seeing that again now as politics always stirs up a lot of emotion. This US election is really affecting investments, probably more than any other election," he said.
 
So, if the dollar (and therefore the dirham) is losing ground, which currency is it losing ground too?
 
Good question.
 
It's the British Pound that is, wonder 'o wonder, once again finding favour with the fickle investor.
 
GBP assets are being seen as particularly attractive by expatriates in the UAE, with the currency strengthening against the USD on Thursday and Friday, says Globaleye.
 
 
The firm reports that many British expatriates in the UAE believe that GBP has, for the near future, reached a low point and the time is right to invest before it starts to rally.
 
"Following Brexit, we had a significant weakening of the British Pound, which has continued until now. However, in relation to the USD, that looks to have stopped for the time being. Expatriates feel now is the time to invest in GBP," said Terry.
 
This Tuesday the world will turn to American to watch the results of the US Presidential Election - between Hillary Clinton and Donald Trump - unfold.
 
In the UAE, the personal finance ramifications are significant.
 
"On qualification criteria alone, it's hard to argue against Clinton's candidacy, whereas Trump represents the greatest unknown," Terry added.
 
"If Trump did win, the markets would likely go a little crazy in the short term. Once this volatility subsides, it wouldn't be surprising to see stocks actually doing better than they would under a Clinton presidency given how difficult it would be for him to initiate any government action.
 
"In the UAE, it is not just about who wins the election but also how that will affect individual's investments and future plans."