A joint report of the Department of Economic Development in Abu Dhabi and the Khalifa Fund for Enterprise Development, entitled: "The impact of (Covid-19) on small and medium-sized companies in the UAE", confirmed that the UAE's ability to face its financial obligations is still very strong and completely stable, which supports confidence that it will be able Overcoming the situation caused by the emerging Corona Virus (Covid-19) crisis, without major damage or losses.
Food security
The report, which "Emirates Today" obtained a copy of, stated that the UAE will succeed in gradually mitigating the effects of "Covid-19", expecting the UAE to continue investing in the food security and healthcare industries, and increase its investments in these two sectors during the coming period.
The report pointed out that consumers will deal with caution, economically and socially, until the end of this year, while the economy is expected to improve gradually, at a time when companies and businesses return to their normal operations gradually, before returning to their operations completely next year.
The report pointed out that the SME sector will face some difficulties after Coved-19, indicating that some companies that have been able to mitigate the effects of the crisis will adapt to the changes more quickly, compared to other companies that have suffered low staff and dealers and financial flows.
Travel and events
According to the report, the travel sector will gradually return to some destinations, with many precautionary health measures taken, pointing out that the UAE has already announced the return of flights to some destinations during last May.
The report expected that public meetings and events would resume normally during the first quarter of next year, pointing out that some sectors such as sports, entertainment, tourism, travel and retail need additional time to return to normal conditions and work at full capacity.
Abu Dhabi Economy
For his part, the head of the Abu Dhabi Department of Economic Development, Chairman of the Khalifa Fund for Enterprise Development, Mohamed Ali Al-Sharafa Al-Hammadi, said in the introduction to the report that Abu Dhabi’s economy was able to maintain its strength and efficiency and respond quickly to the effects of the crisis, thanks to the long-term strategic vision that focuses on diversifying the economy , Increasing the share of non-oil economic sectors in GDP, and supporting the private sector and small and medium-sized enterprises as catalysts for growth.
He stressed that the Abu Dhabi government is aware of the big role of the Khalifa Fund in supporting the capabilities of small projects, and preparing them for the post-"Covid-19" stage, especially those projects related to innovation and technology, and the transfer of knowledge in light of future global economic trends.
Motivation initiatives
He added that the economic packages and stimulus initiatives launched by Abu Dhabi since the beginning of the crisis were aimed at mitigating the effects of the “Covid-19 crisis” on the emirate’s economy, at the level of individuals and companies, ensuring continued financial growth, continuing the economic gains of the emirate, reducing the cost of living, and providing financial support for projects And individuals affected by the current conditions.
He mentioned that the initiatives for small and medium enterprises, under the umbrella of the Khalifa Fund for Enterprise Development, aim to ensure the continuity of these projects, and included delaying the installments of 496 projects for a period of three months, in addition to granting short-term loans to projects facing difficulties.
Purchasing power
The head of the Abu Dhabi Department of Economic Development, Muhammad Ali Al-Sharafa Al-Hammadi, pointed out that the purchasing power decreased by 10% compared to 2019, which was attributed to the decrease in the purchasing power of individuals working in the private sector and sectors affected by the "Covid-19 crisis" in particular, as a result of low wages Unpaid leave and unemployment.
496
Projects whose financing installments were postponed 3 months.