- April 11, 2021
- Posted by: Waqas Siddiqui
- Category: Business & Economy
Abu Dhabi Government Aims to Boost Economy Amid Covid-19 Pandemic
There are two major challenges that the Abu Dhabi government is currently facing, in the post-pandemic market which includes supporting businesses that are currently operating in Abu Dhabi and promoting the Emirate as an investment destination despite the lockdowns and restrictions that have been placed due to the Covid-19 outbreak. Nevertheless, Abu Dhabi has taken agile and effective actions to address these challenges.
The government allocated AED 3 billion (USD 816.8 million) credit guarantee scheme to Small and Medium-sized Enterprises (SMEs) through the Ghadan 21 Accelerator Programme and introduced several relief funds, subsidies and waivers to support the businesses in Abu Dhabi. The swift response to the pandemic from authorities, residents and businesses, provided the Abu Dhabi Investment Office (ADIO) an opportunity to showcase the resilience of the local economy and society.
Abu Dhabi Investment Office Initiatives
Along with the financial incentives and public incentives deployed under the Ghadan 21 Accelerator Programme, the role of ADIO and other organizations working towards economic development is to identify gaps and opportunities in the business ecosystem and to connect people from the public and private sectors, and across different industries. Abu Dhabi is currently focusing on improving areas that collide with the interest of national security, development priorities and the competitive advantages found in Emirate.
Some of its major focus includes innovation in agriculture, ICT (Information & Communications Technology), financial services, health and biopharmaceuticals, and tourism. Transformation in these fields is being boosted by ADIO’s AgTech Incentive Programme, launched in 2020, with ADIO providing competitive financial and non-financial support to innovative businesses that allow them to deliver impactful solutions. Success in these sectors will contribute to economic diversification and increase the trade activity in Abu Dhabi.
Likewise, Abu Dhabi is fostering the public-private partnership (PPP) which was formalized in 2020, considering the commercial and financial impact that the partnership will have on the economy. The PPP framework will have more focus on sustainability rather than the return on investment, making sure that the parties involved in this partnership generate social dividends in terms of contributing to sovereign wealth, providing an efficient and effective service for citizens, and ensuring environmental sustainability.
Creating Sustainable Business Environment
The investors are confident in the government’s commitment in providing an effective environment for the businesses to grow in terms of infrastructure, safety, subsidies and other waivers. On the other hand, the UAE government has also provided a clear path to acquiring UAE citizenship for international investors who excel at investing in key sectors. With an eye to the future, Abu Dhabi’s development strategy continues to focus on inclusive growth, with a particular attention on expanding opportunities for younger generations.
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