Most notably the recovery of tourism and oil and the launch of Expo 2020 Dubai.
10 reasons to support the recovery of the UAE economy in 2021
The UAE is dealing with the Corona pandemic with a successful dynamic, which is well received by all countries of the world.
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Economists expected that the year 2021 will witness a remarkable economic recovery and a strong rebound for the UAE economy, supported by the positive indicators shown by the performance of the economic sectors during the past period and global economic indicators, with the start of the distribution of Corona vaccines.
Experts told Emirates Today that there are more than 10 indicators of the recovery of the local economy, among them the UAE’s success in the experience of dealing with the pandemic and its readiness, the continued recovery of oil prices, the return of tourism and the organization of exhibitions, and the launch of the Expo Dubai. They pointed to government stimulus packages, the return of air traffic and travel, and the start of distributing vaccines in countries around the world, including the UAE.
They explained that there are indications that the global economy is recovering, which will positively affect the local economy, including positive Chinese economic data, increased demand for oil from Asian countries, and the outcome of the US presidential elections, as well as a recovery in the banking sector.
The economic landscape
In detail, the CEO of Salt Financial Consulting and the economist, Tariq Qaqish, said that “the economic scene in the coming year 2021 depends greatly on developments in dealing with the (Covid-19) pandemic, and the world's ability to respond to its repercussions, especially with the emergence of The new strain ».
He added that the UAE has been dealing with the pandemic from the beginning, with a successful dynamic, which is well received by all countries of the world, and in itself it is one of the indicators of economic recovery.
He explained that the tourism sector has witnessed a clear recovery during the past period, which is a good indication of the return to normal life, pointing to the UAE’s announcement of its license to distribute the vaccine, which enhances the healthy environment and the beginning of the disease’s decline, indicating that companies and businesses have returned in a tangible way within the framework of implementing procedures. Precautionary combating the outbreak of the pandemic.
Qaqish stated that the last period witnessed stimulus packages from the government, which contributed greatly to confronting the crisis caused by "Corona", which is a good indicator that confirms the state's ability and willingness to deal with crises, indicating that the matter at the beginning of the pandemic was confusing, but the preparations are now more An ability to absorb the pandemic, in terms of the availability of medicines and vaccines, and the preparations of medical teams and hospitals, pointing out that the economic support plans for small companies and the measures taken by the Central Bank will have a tangible impact on a full recovery during the next year.
Qaqish expected a reversal in the economic situation towards recovery, and achieving a positive growth rate of no less than 2% supported by the return of tourism, the continuation of travel and aviation and the organization of Expo 2020 Dubai, as well as the rise in oil prices, calling for the establishment of a direct fund to support successful companies Stalled during a temporary period until the return of profitability, in a way that helps and supports these companies and their continuity in promoting the growth of the local economy.
International Economy
For his part, the regional director of ACM Capital, the financial expert, Wael Hammad, said, "The UAE is part of the world, and its economy is significantly affected by the global economy," stressing that the whole world is expected to recover during the next year, with the support of several indicators, Among them are the encouraging Chinese data, improved oil prices, and the remarkable demand for oil from Asian countries, led by China.
He added: “Although the emergence of a new strain of (Corona) virus has affected global markets, and we have seen investors resort to safe havens, there is a positive aspect that is the start of distributing the vaccine, which will also be suitable for dealing with the new strain, according to the statements of the World Health Organization.” .
He pointed out that the vaccine distribution plans indicate that it will be available to all segments immediately, which means that signs of recovery will appear before the middle of next year.
The economy recovered
And Hammad added: “The biggest indicator of the global economic recovery is China, which is starting to shake off the dust of the pandemic, with the emergence of encouraging economic data in China and the improvement of oil prices, and the stimulus packages that began alongside the efforts of central banks, to help economies absorb the repercussions of the pandemic.
The political situation in the United States and the results of the presidential elections for President-elect Joe Biden give indications of the start of stability that coincides with the start of the distribution of vaccines and the gradual return of consumption.
He emphasized that the UAE economy is diversified and does not depend on oil only, and this is a positive thing with the start of the recovery of the tourism and industry sectors, noting that the UAE's handling of the pandemic is a success story that will also enhance the ability of its economy to achieve its goals during the next year.
Key indicators
For his part, a member of the advisory board at the "Chartered Securities and Investment Institute", financial analyst Waddah Al-Taha, said, "The main indicators confirm that there is a gradual recovery during the next year, and the rate of economic growth in the UAE during the next year will range between 2 and 3%, especially if There was cohesion mainly in oil prices, which is the sector that substantially participates in the GDP.
Al-Taha indicated that the overall economic performance in the UAE during 2021 will be better than 2020.
He said, "The recovery depends greatly on the heart of the economy, which is the banking activity, as we see efficient dealing from the central bank, especially with good levels of liquidity, and the value of assets that reached more than 3.2 trillion dirhams," indicating the importance of strengthening support for small and medium-sized companies to enhance Its capabilities to surpass the current stage.
10 indicators of economic recovery
1- The UAE’s success in dealing with the pandemic.
2- The oil price recovery continues.
3- The return of the tourism movement and the organization of exhibitions.
4- The launch of the exhibition «Expo 2020 Dubai».
5- Governmental stimulus packages.
6- The return of air traffic and travel.
7- Start distributing vaccines in countries around the world, including the UAE.
8- Global economic recovery.
9- Deciding the outcome of the US presidential elections.
10- Recovery of the banking sector.
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