President Donald Trump has said that the United States is considering financial support for the United Arab Emirates, including a possible currency swap arrangement, as the war with Iran puts growing pressure on the Gulf state’s economy.
“It is,” Trump told CNBC on Tuesday when asked whether a currency swap with the UAE was under consideration, calling the Emirates “a good ally.”
“They’re really led by incredible people… I mean, I’m surprised, because they are really rich,” Trump said.
“If I could help them, I would. We’re helping them much more with what we’re doing with the war,” he added, referring to the US and Israel’s war on Iran.
The comments came after reports that UAE Central Bank Governor Khaled Mohamed Balama raised the idea of a swap line during meetings last week in Washington with US Treasury Secretary Scott Bessent and Federal Reserve officials.
According to The Wall Street Journal, Emirati officials are seeking what they describe as a financial “backstop” in case the prolonged conflict with Iran pushes the oil-rich nation into a deeper economic crisis.
Oil shock and investor fears
Despite its vast wealth, the UAE has been hit hard by the fallout from the regional conflict.
Iranian strikes have reportedly damaged oil and gas infrastructure in the country, while Tehran’s blockade of the Strait of Hormuz since late February has severely disrupted UAE oil shipments — a major source of national revenue.
Officials fear that a prolonged war could damage the UAE’s standing as one of the world’s top financial hubs, draining foreign reserves and shaking investor confidence in what was long seen as one of the region’s safest destinations for capital.
If approved, a currency swap line would give the UAE Central Bank access to low-cost US dollars, helping it stabilise its currency and reinforce foreign reserves in the event of a liquidity crunch.