29 December, 2020
UAE GDP to Grow by 3.6% in 2021
The UAE Government estimates forecast a 3.6% growth in the economy for the year 2021.
According to media reports, the non-oil GDP of UAE would grow by a 3.6% rate in 2021, after a slight contraction observed in 2020. The Central Bank of UAE pegs the contraction at 4.5% for 2020, with stimulus packages totaling to AED 388 Billion having already been infused into the economy through various initiatives.
In the first phase of the review, 15 initiatives were analyzed for progress, of which 46% was found to have a complete implementation. Major initiatives implemented so far include bankruptcy law amendments, promoting investment through commercial company law amendments, reducing taxes and fees in the tourism sector, allocation of grants to the tourism establishments, enhancing flexibility in the labor market, and many more.
Minister of Economy Abdulla bin Touq Al Mari heads the committee for oversight of the implementation of initiatives in this direction.
The next focus according to the committee is to measure the impact and effectiveness of these initiatives, while also contributing to the accelerated growth of the economic recovery.
The committee placed focus on the achievements under six major tracks – the opening of new markets both locally and internationally, empowering the new economy and developing priority sectors, promoting tourism, providing financial support and facilitating lending, stimulation of innovation and the attraction and retention of talent.
The committee also added that the recovery of vital sectors has been strongly aided by stimulus packages and these have contributed to business continuity.