Pandemic Crisis: The Resilience of The UAE Economy

The UAE is much more resilient than their GCC counterparts and their economy will overcome the current pandemic crisis with the help of new age technologies, analysts argued Sarwant Singh, managing partner of Frost & Sullivan. Singh said the UAE fares better when it comes to recovery, as witnessed in previous recessions, despite this time, the prospects appear worrying. Covid-19 is having a very severe impact on some of the key sectors of hospitality, retail, real estate and aviation in the UAE. Therefore, I believe that the UAE does not necessarily have an edge over its peers in the GCC region this time around, and future economic policies will provide evidence of its speed of recovery. Future policies currently point towards a more aggressive push towards diversification – a trend that will gain momentum across the GCC overall. The UAE’s focus on next generation growing sectors such as edutech, fintech, healthcare technology, hitech manufacturing and their commitment to building a circular economy will help to successfully overcome this recession by attracting new FDI,” Singh added. To support businesses and the economy in general, the GCC governments have allocated 2% to 30% of GDP in economic stimulus packages. The business environment in the region will undergo a transformation that will have a far-reaching impact on economic and social trends. Furthermore, as digital penetration increases over the next decade, the non-oil sectors of the GCC – retail, healthcare, education, mega-event projects and renewable energy – will continue to dominate economics, Frost & Sullivan always said. Saeed Mohammed Al Tayer, chief executive officer and CEO of Dubai Electricity and Water Authority, said at a recent virtual press conference that “The only industry that has suffered a setback has been restaurants. But apart from that, a Good momentum of growth was seen in other sectors.” Frost & Sullivan says that signs of an economic recovery in the GCC will be visible from the second quarter of next year and the region will see impressive growth through 2030.

Elaboration by IICAUE on source: Khaleej Times