30 May, 2021
UAE Economy Exceeds Expectations
The UAE Ministry of Finance has expressed positive results on the performance of the economy.
Abdulla bin Touq Al Mari, Minister of Economy said that the performance of UAE Economy for 2020 was well past the expectations, and the economy is on track for a recovery in 2021.
The preliminary results of the UAE’s economic performance for 2020 revealed that the country’s macroeconomic indicators had seen a relatively limited decline in gross domestic product and in the non-oil GDP last year by 6.1% and 6.2%, respectively, compared to 2019. This is a comparatively low decline considering that the slump in major global economies reached several times lower.
The Minister added that 2020 presented a strong challenge to the society and also to the business community in general. No country was fully able to come out of it yet, and the UAE was no different as it was vulnerable too. With foreign trade, tourism, FDI and logistics being key contributors to the UAE economy, naturally the effect was felt in 2020 due to relatively lower performance in 2020.
However, in 2021, the tables were turned through a large scale turnaround strategy adopted by the Government.
The vision and proactive approach by the Government led to announcement of stimulus packages that aided the business community. The pandemic effect on key sectors was softened and some sectors were able to recover in full. The GDP for non-oil sector reached AED 1.005 Trillion for 2020.
One other strong point was the consistent performance of UAE also on competitiveness rankings. The Agility Emerging Markets Competitiveness Rankings placed UAE at #1 in the GCC. All individual sub-indices saw the UAE being ranked as #1 in the GCC.
In terms of tax indices, the UAE consistently ranked in the Top 10, indicating a strong regulatory framework. The World Economic Forum ranked UAE as #3 due to its low consumption taxes.
All the above indices led to a strong performance in 2020 and a positive outlook is in place for 2021.
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