29 April, 2020
Faster Economic Recovery on Track Due to Key Measures
The UAE Government, along with banks, would be leading the economic recovery with a slew of impetuses and measures targeted at businesses.
According to a report released by Standard Chartered, the UAE GDP is expected to contract by 4.6% year on year, and a similar contraction ratio is also expected in the non-oil sectors. A support of nearly 17% of UAE GDP, amounting to $70Bn is to be infused in the form of liquidity by the Central Bank of UAE.
Due to the prevalent business and social conditions, the market and economic rebound is likely to hinge on preservation of business continuity and jobs, as per the Standard Chartered report. Naturally, the focus is expected to be on identifying and nurturing demand sources. In order to nurture demand, businesses must look beyond current disruptions and conditions for a longer vision, the report added.
The Government has also been supporting businesses of all sizes with a lot of flexibility in handling the employment terms. This has led to development of interest in business continuity, with attractive incentives being laid out even for new entrants. Since demand is currently on a low, the measures by the Government are expected to boost business demand and activity, and lead to sustainable growth.
These measures, coupled with the steps taken by authorities to ease the operational challenges of small and medium businesses, is expected to bring the economy back on track, as highlighted by Bilal Khan, Senior Economist of Standard Chartered.