The central bank expected that the national economy will begin to recover in the second half of this year, with the support of the stimulus packages approved by the central bank, the federal government and local governments, indicating that the performance of the economy during January and February of this year came well, as 64,000 jobs were added New to the private sector, along with an increase of three billion dirhams in expatriate remittances to their countries of origin.
He added that the spread of the Corona virus did not affect the remittances of workers in the country towards their countries of origin, as they rose during the first quarter of this year, by a value of three billion dirhams, equivalent to a quarterly growth of 7.8%.
Economic activities
In detail, the Central Bank confirmed, in the quarterly review report for the first quarter of this year, that economic activities witnessed different movements in the first quarter of the year, as the UAE economy performed well during January and February of 2020, but this was followed by a general slowdown in Main activities amid precautionary measures related to the Corona pandemic (Covid 19).
In line with the recommendations of the World Health Organization, the UAE government has set partial restrictions to limit the spread of the virus, which has limited local economic activities, tourism and consumption.
The «Central» indicated that the recovery of economic activity is supposed to start in the second half of this year, as it is expected that the targeted economic support program by the Central Bank and the economic stimulus packages announced by the federal and local governments, will positively affect the PMI and real estate prices Employment and credit growth as soon as the virus risks are contained.
Labor market
The central bank pointed out that the negative developments in the macro economy due to the Corona virus were not reflected negatively on the labor market by the end of the first quarter of this year, as employment in the private sector increased by 1.3% on a quarterly basis, and 2% on an annual basis.
He said that the number of jobs in the private sector reached 5.1 million, as 64,000 new jobs were added in the first three months of 2020.
He continued that the spread of the Corona virus did not affect the remittances of workers in the country towards their countries of origin, as they rose during the first quarter of this year, by three billion dirhams, equivalent to a quarterly growth of 7.8%, to 41.4 billion dirhams compared to the same period in 2019, which reached 38.4 billion dirhams, indicating that exchange companies implemented a share equivalent to 31.8 billion dirhams from these transfers, while 9.6 billion dirhams were transferred through banks.
The Central report stated that the five largest countries receiving personal transfers directed abroad during the period from January to March 2020 are: India (37.8%, followed by Pakistan (11.4%), then the Philippines (7%), Egypt (6.6%), and the states United (3.6%).
The dirham is high
The report indicated that in the first quarter of 2020, the exchange rate of dirhams increased in nominal terms on an annual basis and on a quarterly basis due to the high exchange rate of the US dollar.
Against the currencies of the top 10 import partners of non-dollar-linked countries, the dirham exchange rate rose 0.1% on a quarterly basis, and by 1.2% on an annual basis.
As for the currencies of the top 10 export partners from non-dollar-linked and non-oil-exporting countries, the rise in the exchange rate was 0.4% on a quarterly basis, and 0.9% on a yearly basis.
Financial inclusion
Al-Markazi indicated that it conducted a survey of 5,134 residents, aged over 15, across the seven emirates, including students and individuals with low and middle income. The aim of the survey was to collect information that would enable the Central Bank to design and implement a comprehensive strategy aimed at enhancing the degree of financial inclusion in the UAE.
The survey collected information from individuals about their ability to access formal financial services that are necessary enablers to improve their livelihoods, such as the ability to obtain a bank account, official credit, insurance services, and access and use of money transfer services.
He pointed out that the results of the survey showed that 85% of adults, who are over the age of 15, are users of at least one official financial service, while 15% can access formal financial services, or in other words "financially excluded."
85%
Of adults in the country use at least one official financial service.
The exchange rate of the dirham increased in nominal terms during the first quarter of 2020, on an annual basis and on a quarterly basis due to the high dollar exchange rate.