29 June, 2021
UAE on Robust Recovery after Dh395 Billion Lifeline
Since the start of the pandemic, the UAE government has spent a total of Dh395 billion for initiatives and economic support – in a bid to ensure the country’s solid recovery.
The country would achieve a GDP of 3.6% by the end of 2021, as per the UAE Central Bank. The International Monetary Fund is expecting the country to register an economic growth of 3.1% in 2021 and 2.6% the following year.
Government revenues from economic activities has increased 115% in Q4 of 2020, as compared to Q3 of FY 2020. In the first quarter of 2021, revenues continued to increase by 13%, versus Q4 of FY 2020. Additionally, there was a 4% increase in the number of newly registered companies in 2020 in comparison to 2019.
The UAE ranked 1st in the region and 9th in the world as the most competitive nation, according to the International Institute for Management Development.
The UAE cabinet in August of 2020, greenlighted a series of initiatives to support the different economic sectors. The employment of the 33 initiatives was divided into three stages, with the first being providing urgent support for the economy and its business sectors, the second to offer corresponding support for said industries in order to ensure a rapid economic recovery. Lastly, the third stage will have comprehensive backing to key sectors.
The government has completed 80% of the first stage, more than 25% of the second, and is continuing to implement their plan to fully complete 100% by the end of 2021.
It is surprising to note that in spite of the pandemic, numerous industries experienced growth in 2020 as compared to 2019, namely: agriculture and fishing (6.9%), health and social support (6.7%), IT and communications (4.3%), education (2.8%), and social security (1.7%). Work permits issued in Q1 of 2021 had reached pre-COVID levels, with over 540,624 new work permits issued, and over a million registered in 2020.
In addition, 13,500 new companies will receive Dh30 billion in financial support from Emirates Development Bank (EDB) by 2025. This is all in an effort to fund vital sectors and help boost the overall economy.
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