It ranked first in the region and the Arab world, and ninth globally in competitiveness indicators
Government support, increased spending, and international confidence support the continued recovery of the UAE economy in 2021
In the coming year, the UAE economy is expected to witness a rapid recovery of momentum and commercial, industrial and financial activity for the state.
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Over the past 20 years, the UAE has established a financial and economic structure capable of withstanding in the face of crises, so it smoothly overcame a financial crisis that struck the world in 2008, and succeeded in absorbing the effects of the Corona pandemic, thus preserving its position as a regional trade center, and a preferred destination for business and residence. .
The UAE ranked first in the Arab world in the indicator of economic recovery from the effects of the "Covid-19" epidemic, which was published by the "Horizon" research group.
According to the results of the index, which covers 122 countries, the UAE came at the forefront of the Arab countries, supported by many factors and elements of power, foremost among which is the strong institutional system, the high digital capabilities of various sectors, in addition to the high educational level of the population.
In the coming year, the UAE economy is expected to witness a rapid recovery of momentum and commercial, industrial and financial activity for the state, thanks to government support plans, increased public spending and international confidence in the UAE economy, which has strengthened its position on global competitiveness indicators, and ranked first regionally and in the Arab world and ninth globally.
local production
In detail, the Central Bank expected the growth of the UAE's GDP to 2.5% in 2021, which is an indication of the significant improvement that the national economy will witness, despite the slowdown that controls global economies.
In a recent report, the Central Bank confirmed that the increase in GDP growth for next year is driven by the growth of 3.6% in non-oil GDP.
He explained that the growth of non-oil GDP will be supported by higher public spending, accelerated credit growth, improved employment rates, as well as the relative stability of the real estate market, in addition to strengthening the state of recovery in confidence with the organization of the Expo 2020 Dubai.
Financial situation
Central Bank Governor Abdul Hamid Muhammad Saeed Al-Ahmadi said: “The Central Bank affirms its commitment to support the financial system of the UAE, and to take the necessary measures to accelerate the recovery of the economy from the repercussions of the (Covid-19) epidemic. Banks are from companies, small and medium enterprises and individuals, and we are confident that this initiative comes to protect the economy from the impact of the epidemic, and puts us in an ideal position to recover, once the epidemic is completely eliminated. ”
For his part, the Undersecretary of the Ministry of Finance, Yunus Al-Khoury, told "Emirates Today", "The UAE has financial and economic assets that have helped it a lot in the past years, and it is expected that this will continue during the coming period," stressing that "the government has a good and continuous financial position." In financing capital spending on basic projects within the budget, including infrastructure projects and the Union Railroad ».
He added that «the 2021 budget, announced by the Council of Ministers, reflects the stable economic situation of the UAE, despite the circumstances of the (Corona) pandemic and its effects on the economies of other countries. Therefore, the next year is expected to witness continued growth and development in all sectors," stressing that "the priorities of the UAE government are represented. In ensuring the best use of government resources and implementing effective financial policies, ”indicating that the budget was developed according to best practices using the latest technologies, with its main focus on achieving the highest standards of quality of life for citizens and residents.
Al-Khoury emphasized that “things are currently good, and there are plans and projects that are being implemented according to the schedule set for them,” pointing out that the greatest focus in spending in the 2021 budget will be on the social development sector, with the aim of raising the standard of living and providing a decent life for citizens and residents in the country. Distributing programs, projects and initiatives that would enhance the education sector in the country, improve the quality of health care, and provide the highest levels of medical services.
In December 2020, the UAE government received an "Aa2" rating in creditworthiness, which is the strongest sovereign rating in the region, with a stable outlook for the national economy, by the international rating agency (Moody's), in a new step that reflects the success of the country's financial and economic vision and policies. And the strength and stability of its economic, financial and credit sectors.
Ninth place
Regionally, for the fourth consecutive year, the UAE tops the countries of the Middle East and North Africa region in the Global Competitiveness Yearbook 2020 report, issued by the Global Competitiveness Center of the International Institute for Administrative Development in Lausanne, Switzerland, which ranked the country ninth in the world among countries The most competitive in the world, thus remaining the only Arab country that has succeeded in securing its position within the Big 10 Club, in the Global Competitiveness Yearbook Report, for four consecutive years, since it joined the top 10 list in 2017.
Federal budget
The UAE government has approved the federal budget for 2021, with expenditures amounting to 58 billion and 113 million dirhams, to reflect the strength of the national economy, and the abundance and sustainability of resources to finance development, economic and social projects.
The federal budget aims, in accordance with its objectives and the initiatives under it, to raise living standards and provide a decent life for citizens and residents of the UAE.
In addition to the huge financial stimulus packages that were adopted to alleviate the effects of the "Covid-19" crisis by the concerned authorities, represented by the Central Bank of the United Arab Emirates, the Ministry of Finance, federal and local governments, and they will help support small and medium-sized companies, individuals, and private sector companies Affected by the pandemic, and facilitate the economic recovery process in the medium term.
The Central Bank has extended the period of implementation of the main elements of the economic stimulus package amounting to 256 billion dirhams, which it launched under the name of the targeted comprehensive economic support plan, until the end of June 2021.
Banking, the UAE owns the largest Arab banking sector, with assets estimated at 3.2 trillion dirhams, while the total liquidity volume in the country reaches one trillion and 807 billion dirhams.
Tourism and Travel
Within a few years, the UAE was able to strengthen its position on the travel and tourism map, to become one of the most important and largest global tourist destinations, and during 2019 it was able to achieve growth levels that reached 6.2%, compared to the global sector growth rate that did not exceed 4%.
The tourism sector in the country witnessed successive developments, moving from a desert area without tourists to about 27 million visitors by the end of last year, and from (zero) a contribution to the gross domestic product to nearly 180 billion dirhams.
The contribution to the GDP is expected to increase to reach 234 billion dirhams by 2027, which summarizes the development and growth witnessed by the tourism sector.
To view the UAE economy figures in the Global Competitiveness Indicators,
please click on this link.
Oil discoveries
During the current year, the UAE announced new discoveries of unconventional oil resources that can be recovered in land areas, estimated at 22 billion barrels of oil, in addition to an increase in conventional oil reserves by two billion barrels of oil in the Emirate of Abu Dhabi, despite the market conditions and challenges, which With a decline in oil prices, ADNOC was able to attract foreign direct investments worth 47.1 billion dirhams ($ 12.8 billion) to the UAE this year, bringing the total foreign direct investment that ADNOC has attracted since 2017 to 157 billion dirhams (42.66 billion dirhams). Dollars).
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