Business & Economy
UAE Economic Activities to Recover in 2021
Industry experts forecast that the UAE economic recovery will strengthen further in the second half of 2021, primarily because of the successful vaccination drive, economic stimulus plans, visa reforms and other government policies to facilitate the growth of business in UAE. The non-oil sector will continue to drive economic recovery as the government successfully implemented measures to contain Covid-19 pandemic in the country. As a result, the UAE based businesses, investors and consumers have regained their confidence and are now looking ahead for a promising future.
The economic activities are improving and are expected to reach pre-Covid 19 conditions in the next six months. The AED 7.1 billion (USD 2 billion) stimulus package that was announced by the Dubai government since the outbreak of Covid-19 pandemic played a key role in reviving economic activity in the Emirate. According to the data published by the Central Bank of UAE, the country’s economy is expected to see a growth of 2.4% and 3.8% in 2021 and 2022, respectively.
UAE Business Growth Opportunities
Apart from UAE, the outlook for most Middle Eastern countries also looks positive in the second half of 2021, however the economic growth and sustainable recovery in the coming month in the Middle East region will depend on controlling and keeping the coronavirus levels low. Key events such as EXPO 2020 in Dubai and 2022 FIFA world cup in Qatar will play a vital role in reviving the economy of the Middle East.
The region’s economies are in an ideal position to capitalise on the emerging growth opportunities. Dubai is preparing itself in full swing to give final touches to EXPO 2020 which is to happen in October 2021. In addition the tourist activities are also expected to pick up with the opening of international borders. The increasing oil demand also provides a positive sign for the revival of the global economy. The controlled situations of Covid-19 pandemic in China, Europe and the US will help resume international traffic in coming months and positively contribute to the development of UAE’s economy.
Investment Opportunities in Dubai & UAE
UAE’s economy was resilient and bounced back strongly from the Covid -19 pandemic last year. UAE’s economy is on track to post 2.4% GDP growth in 2021 because of the timely measures to contain the pandemic. The government implemented stringent preventive measures and accelerated the vaccination rate to increase the recovery from the Covid-19 pandemic. It has also increased the investor and consumer confidence and Dubai is expected to attract fresh investments into all sectors, especially Food & Beverage (F&B), Real Estate & Construction, Healthcare, Renewable Energy, e-Commerce and Service Innovation. The foreign investors are also actively investing in the retail and maritime sectors, reflecting their confidence in the UAE economy to provide an effective environment for the businesses to grow.
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UAE Records Positive Economic & Commercial Activities – 2021
UAE has started seeing positive signs of economic recovery from May 2021 onwards recording a strong growth since the start of the pandemic. It has also recorded a solid recovery of key sectors that support the national economy. Some of the key sectors are expected to witness growing demand in the forthcoming months. Statistics from the Federal Competitiveness and Statistics Centre (FCSC) reported increases in price indexes covering seven major sectors that constitute the UAE’s Consumer Price Index (CPI). The CPI for the culture and entertainment sector led this category with its index points rising to 106.36 (CPI) in May 2021, compared to 103.68 (CPI) in April 2021.
UAE Key Sector Growth
The Clothing and Footwear segment within the UAEs retail sector recorded the second-largest growth in CPI to 115.02 points in May compared to 114.03 points during the same reporting period in April 2021. Similarly, the food and beverage segment recorded 107.57 (CPI) in May compared to 106.82 (CPI) in April (2021). The other goods and services sector rose to 115.75 (CPI) from 114.77 (CPI) for the same time period.
The Hotel, Restaurants & Catering (HORECA) segment within the Food Sector raised to 115.85 (CPI) in May 2021 from 115.09 (CPI) in April 2021 while the Healthcare sector increased to 106.31 (CPI) from 106.17 (CPI) and the Transport & Services sector reached 110.80 (CPI), from 110.33 (CPI).
Real Estate Sector Growth
The Dubai property market has started gaining momentum and has seen significant growth over the past few months. A total of 2,020 real estate and properties transactions were valued at AED 4.5 billion (USD 1.25 billion) in total during the first week of May 2021, according to a report published by Dubai Land Department (DLD). The DLD weekly report mentioned that among the 2,020 properties that were sold, 119 were plots with a total value estimated at AED 845 million (USD 230 million), while 1,321 were apartments and villas which were sold for AED 2.25 billion (USD 600 million).
Investment Opportunities in UAE & Dubai
The Dubai government has implemented stringent preventive measures and accelerated the vaccination rate to increase the recovery from the Covid-19 pandemic. The recovery plan that focuses on Dubai’s success in combating the Covid-19 pandemic and starting the recovery phase in record time showcased the government’s commitment towards providing the best environment in the world, reinforcing Dubai’s competitiveness as a global destination for investment over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all sectors. The FDI (Foreign Direct Investors) are also actively investing in the retail and real estate sectors, reflecting the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. With the upcoming EXPO 2020 in October this year, Dubai is expected to be a major investment destination in the Post Covid-19 situation.
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UAE Hospitality & Tourism Sector is Expected to see an Accelerated Growth
The hospitality and tourism sector in UAE is expected to accelerate its growth and strengthen in 2021, as a result of the push to mass coronavirus vaccinations and the easing of travel restrictions in some countries. Reports from ‘Hoteliers’ suggested that UAE had the second highest Hotels occupancy rate after China in 2020 despite the pandemic. Similarly, the Department of Culture and Tourism (DCT) in Abu Dhabi also expects that the hotel occupancy rates will increase to at least 80% in 2021, from 70% in 2020.
With Abu Dhabi being confident about a substantial recovery in the tourism sector by the year 2021, the Emirate now focuses on providing high-quality and exciting experiences with health, safety & well-being as the top priority. Abu Dhabi has taken all the necessary precautions to welcome the increasing numbers of tourists in a safe environment. Currently Abu Dhabi DCT has a Green List of 14 countries, regions and territories that can travel to the Emirates. The committee constantly reviews the countries based on Covid-19 developments globally, planning to expand the green list and anticipates a growing number of countries to be added to it in the near future.
UAE Tourism – Growth Factors
The UAE is in a strong position to capture target markets as they reopen its borders. On similar lines, Dubai’s focuses on tapping into the conferences business, boost leisure events and start a new global marketing campaign in May 2021 to showcase the emirate as a summer destination for families. According to the statistics from Dubai Tourism, the Emirate hosted more than 810,000 international tourists in the first two months of 2021 compared to 3.27 million visitors in January and February of 2020. Last year, Dubai had 5.1 Million visitors, which was one-third of the number of visitors in 2019.
Some of the major growth drivers for the tourism industry include the Dubai Expo, the UAE’s 50-year celebrations, and a surge in domestic tourists. Once the key source markets of Saudi Arabia, the UK and Germany re-open, the rebound in leisure travel to the UAE will see a significant increase in its numbers. The Israel market will also be a huge opportunity following the normalisation of relations with the UAE, given the spending power and interest from both Israeli residents and travellers to Israel.
Growth in UAE Hospitality & Tourism Sector
Overcoming Covid-19 situation and a mass push for the corona vaccines will be a key to accelerate the growth of the tourism sector in the country. The UAE government has successfully rolled-out the Covid-19 vaccines with over 52.46% of the UAE population being vaccinated already. Other initiatives to help the growth in the local economy such as extension of freeze on government fees to support the local economy & businesses and the announcement of UAE citizenship has also boosted the interest level among tourists to visit UAE. The overall market shows significant potential for the growth in the Hospitality & Tourism sector in the forthcoming years.
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Dubai Records Foreign Direct Investment of AED 24.7 Billion in 2020
The Dubai Investment Development Agency, a part of Dubai Economy estimated that the Emirate recorded a Foreign Direct Investment (FDI) of AED 24.7 billion (USD 6.7 billion), across 455 projects for the year 2020. These FDI projects initiated in Dubai during 2020 exceeded the annual average projects over the past five years, which was estimated to be 441. Among the FDI projects, it was estimated that more than 50% were Greenfield projects wherein, the investors created a new brand at a new facility in Dubai. In addition, Dubai ranked first in the Middle East and North Africa (MENA) region and fourth globally in attracting FDI during this period and also achieved more than 2% of the global market share in Greenfield FDI projects for the previous year. Furthermore, approximately 18,325 new jobs were created as a result of these investments.
The FDI capital from reinvestment projects was estimated to be AED 1.6 billion in (USD 440 million), 2020, as per the data from Dubai FDI Monitor. Dubai ranked first in the MENA region in reinvestment FDI projects and 11th globally. Similarly, Dubai startups attracted an estimated AED 2.4 billion (USD 650 million), in FDI capital through 31 investments in 2020. The share of FDI projects in strategic sectors reached 57% and accounted for 91% of estimated FDI capital flows, reaching AED 22.5 billion (USD 6 billion). Around 76% of all strategic FDI projects in 2020 were invested in the technology sector with a total amount of AED 11.2 billion (USD 3 billion).
Dubai Foreign Direct Investment – Country & Sector
The United States was the top source country for FDI, accounting for 21% of FDI capital and 22% of FDI projects, followed by France (16%), Japan (11%), the UK (7%), and Germany (6%) made up the rest of the top five source countries for FDI capital into Dubai in 2020. The top five source countries accounted for 60% of the total FDI capital flows. The top five sectors with FDI flows were accommodation and food services (40%), electric power generation (13%), information services (8%), healthcare & social assistance (4%), and retail & whole trade (4%). The FDI capital in the top five sectors accounted for 69%.
Read: UAE an Attractive Destination for Investment Over Next 3 Years
Investment Opportunities in Dubai
The people-centric plan focuses on Dubai’s success in combating the Covid-19 pandemic and starting the recovery phase in record time showcased the government’s commitment towards providing the best environment in the world, reinforcing Dubai’s competitiveness as a global destination for investment over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all the sectors. The FDI capital inflow during the year 2020, reflects the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. Dubai expects a significant increase in the FDI inflow in the forthcoming years with the futuristic strategies planned by the government.
Research Konnection is one of the top consulting companies in Dubai and UAE. We are rated as the best Business Plan Consultants in Dubai and New Business Setup Consultants in Dubai. Contact us for Market Research Services and Feasibility Study Services in UAE. …April 17, 2021
UAE an Attractive Destination for Investment Over Next 3 Years
The United Arab Emirates (UAE) rose to 15th position globally in 2021, up by four positions compared to the previous year on the Kearney’s Foreign Direct Investment Confidence Index (FDICI). The rankings were calculated based on the market research survey conducted by Kearney of 500 senior executives of the world’s leading corporations. The survey questionnaire asked questions related to companies’ likelihood of making a direct investment in a market over the next three years. Interestingly, global business executives stated that UAE is likely to attract the most investment in the next three years in the Middle East.
Despite the Covid-19 pandemic, UAE was one of the five countries that achieved a higher ranking in 2021 on the FDICI index. Some of the scales in which UAE ranked high were; government incentives for investors, enabling environment, technological infrastructure and innovation. Optimism levels regarding the economic outlook for the UAE scored higher in relative terms than those documented last year, placing it among the top five countries in terms of net optimism. The UAE along with Brazil and China were also named as the only three emerging markets on FDICI.
Foreign Direct Investment in Post-Pandemic Economy
The 2021 FDICI rankings displayed a high level of uncertainty about the timeline in which the global economy will recover from the post-Covid situation. In addition to the fall in confidence about the global economic recovery, the overall scores for the top-25 countries have fallen significantly when compared with previous years. Only 57% of investors interviewed were optimistic about the three-year global economic outlook, while more than 72% were confident about it in the year 2020, in a survey conducted before the pandemic began. Investors are more cautious regarding FDI globally as the majority of the countries are still going through economic recovery. The ranking reveals a significant fall in overall optimism about the global economy since pre-pandemic levels in 2020; however, investor optimism about the Middle East and North Africa (MENA) region generally remained stable.
Foreign Direct Investment in UAE
Overcoming Covid-19 situation will be a key to economic recovery and the improvement in FDI inflow. The UAE government has taken several measures to control the Covid-19 outbreak and accelerate the pace of economic recovery. Some of the major initiatives taken by the government include the successful roll-out of Covid-19 vaccines (52.46% of the UAE population is vaccinated), extension of freeze on government fees to support the local economy and businesses, announcement of UAE citizenship and Dh 30 Bn Strategic Programme to Boost the UAE Economy and Dubai Master Plan 2040. This has increased the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. As a result, UAE expects a significant increase in the FDI inflow with the futuristic strategies planned by the government.
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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.
Research Konnection is one of the leading business consulting companies in UAE. We are rated as the best new Business Setup Consultants in Dubai and Abu Dhabi. Contact us for Startup in UAE, Feasibility Study Report in UAE, Startup Consulting Services and Market Intelligence Abu Dhabi. …April 11, 2021
New AED 30 Billion Strategic Programme to Boost the UAE Economy
H. H. Sheikh Mohammed, VP & PM of UAE and Ruler of Dubai, recently announced a new strategic programme to boost vital sectors in the country. The initiative includes AED 30 billion (USD 8.17 billion) provided by the Emirates Development Bank (EDB) to finance the start-ups and SMEs (Small & Medium Enterprises) over the next five years to support the UAE’s efforts on exponentially increasing the size of the industrial sector in the coming decade. The funds provided by EDB will help create and support 13,500 new companies across various sectors and generate more than 25,000 jobs. Some of the major industries that will be funded through EDB are health care, infrastructure, food security and technology.
Emirates Development Bank Strategy
The EDB strategy was formulated by conducting several workshops, arranging meetings and discussions with more than 200 stakeholders across various sectors in the federal, local and private sectors to help to create its new strategy to boost manufacturing. The EDB strategy will help to hasten industrial development and the adoption of advanced technology while its funds will support entrepreneurs, start-ups and SMEs. Apart from the financial assistance, the strategy will also provide supply chain support, project finance, long-term finance, business accelerators, equity capital finance and a business growth support fund. The EDB will establish partnerships with UAE lenders to extend financial services to Small and Medium industrial companies and increase its direct financing by 73% in 2021.
More than 90% of the industrial enterprises that are currently operating in the UAE, are small and medium-sized businesses which are considered to be the backbone of the UAE economy. The EDB strategy will support in creating more than 13,500 new SMEs in the country, which will have a significant impact on economic growth, as they are the major drivers of shaping a productive industrial sector and sustainable economy. The volume of spending on Research and Development in the industrial sector will increase from AED 21 billion (USD 5 billion), which is approximately 1.3% of the GDP (Gross Domestic Product), to AED 57 billion (USD 15.5 billion) in 2031, bringing the contribution to the GDP to 2%.
Investment Opportunities in UAE
The government has taken several measures to control the Covid-19 outbreak and accelerate the pace of economic recovery. Some of the major initiatives taken by the government include providing UAE citizenship, 100% ownership of the businesses, extension of freeze on government fees to support the local economy and businesses. The futuristic strategies planned by the government, reflects the government’s supportive and investor-friendly environment which will continue even beyond Expo 2020. Even though the Expo will end on March 31, 2022, the investors and businesses that are operating in Dubai will continue to benefit from these supportive measures till early 2023.
April 9, 2021
Operation 300 billion – Focus on Sustainable National Economy
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has launched the Industrial Strategy “Operation 300 billion”, a 10-year comprehensive strategy that aims to empower and expand the industrial sector to become the driving force of a sustainable national economy, increasing its contribution to the GDP from the current AED133 billion (USD 36.2 billion) in 2021 to AED 300 billion (USD 81.6 billion) by 2031. The Ministry of Industry and Advanced Technology will lead the strategy comprising of programmes and initiatives to support 13,500 industrial Small and Medium Enterprises (SMEs).
The strategy will focus primarily on future industries that implement advanced technology and the Fourth Industrial Revolution (4IR) solutions and applications. It aims to increase the value of these industries through improving and promoting local products on a global level and building an attractive business environment for local and international investors to improve their productivity. The strategy will also provide facilities and incentives for the industrial SMEs with an aim of positioning the UAE as a global industrial hub and attract Foreign Direct Investors (FDIs), talents and experts from across the world. These initiatives are expected to contribute towards advancing the national economy and sustainable development of the country.
Operation 300 Billion – Objectives
The initiative has four major objectives. The first objective will offer financing facilities to priority industrial sectors, develop industrial quality infrastructure to support existing and new local industries. The second objective is to capitalize on the industrial development and stimulate the national economy through launching a programme to enhance the value and demand for UAE products with the aim of boosting their contribution to the GDP, increasing their exports and finding new markets for them. The third objective is to encourage innovation and the adoption of advanced technology and solutions. The fourth objective is to create strong foundations to enhance the UAE’s position as a leading global hub for both business and technology.
The “Operation 300 billion”, also comprises of a new initiative, that Unifies Industrial Brands under the slogan ‘Make it in the Emirates’. Under the new initiative, the brands that are manufactured will be distinct and have a unique identity by enhancing their quality and global competitiveness. Ultimately, every product made in UAE will comply with the highest international quality standards and have its rightful place among the best international products. The industrial strategy will achieve a giant leap in the UAE’s industrial sector to become the main driving force of the national economy and paving the way for the next 50 years.
Implications of Operations 300 Billion to Economy
There are more than 33,000 industrial enterprises that are currently operating in the UAE, among which more than 95% of the enterprises are small and medium-sized businesses. SMEs are considered to be the backbone of the UAE. The Operation 300 billion strategy will support more than 13,500 SMEs by 2031, as they are major drivers of shaping a productive industrial sector and sustainable economy. The volume of spending on Research and Development in the industrial sector will increase from AED 21 billion (USD 5 billion), which is approximately 1.3% of the GDP, to AED 57 billion (USD 15.5 billion) in 2031, bringing the contribution to the GDP to 2%.
Investment Opportunities in UAE
The government has taken several measures to control the Covid-19 and accelerate the pace of economic recovery. Some of the other major initiatives apart from Operation 300 billion include providing UAE citizenship, 100% ownership of the businesses, extension of freeze on government fees to support the local economy and businesses. The futuristic strategies planned by the government, reflects the government’s supportive and investor-friendly environment which will continue even beyond Expo 2020. Even though the Expo will end on March 31, 2022, the investors and businesses that are operating in Dubai will continue to benefit from these supportive measures till early 2023.
Research Konnection is one of the leading market research companies in UAE. Please feel free to reach out on email@example.com for Market Research in Dubai & Abu Dhabi, Business Idea / Concept Validation, Business Plan Development, Business Setup or Expansion and UAE Market Entry….March 30, 2021
Dubai Urban Master Plan 2040
In order to further enhance Dubai’s appeal to investors, visitors and residents, Dubai has launched the 2040 Urban Master Plan, a roadmap for sustainable urban development in the city. The masterplan was designed by H.H. Sheikh Mohammed bin Rashid Al Maktoum, V.P. and P.M. of the UAE and Ruler of Dubai. The plan focuses on using the available spaces within the city limits and concentrates on development in existing urban areas.
The major focus of Dubai 2040 urban master plan is to develop the five urban centres namely Deira & Bur Dubai, Marina & JBR, Business Bay & Dubai Downtown and Expo 2020 Centre & Dubai Silicon Oasis Centre. Initiatives such as infrastructure development and new property development will be carried out raising Dubai’s reputation globally as a business and financial hub. Furthermore, the implementation of 2040 Master Plan will strengthen Dubai’s resilience toward global challenges.
Impact of Dubai 2040 Urban Master Plan – Tourism & Hospitality
It is estimated that Dubai’s population is set to reach 5.8 million by 2040 from 3.4 million in 2021, and the 2040 urban masterplan will provide the groundwork for how the city can grow sustainably over the next 20 years, accommodating the needs of the growing population. Under the plan, the land area used for hotels and tourist activities will increase by 134%, while the land used for commercial activities will increase to 168 Sq. kms.
While Dubai will continue to be a global hub for innovative start-ups, international corporations and an ideal platform for Foreign Direct Investments (FDI), the master plan will also increase the land area allocated to education and health facilities by 25%, while the length of public beaches will increase by as much as 400% in 2040. Easily accessible integrated service centres will be established across Dubai while the plan also seeks to raise the quality of life of the city while increasing population densities around key transit facilities.
Investment Opportunities in Dubai
The people-centric plan focuses on reinforcing Dubai’s competitiveness as a global destination for investment, by providing a wide diversity of lifestyle and investment opportunities for citizens, residents, visitors and addressing all their growing needs over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all the sectors. The plan will help raise the Emirate’s growing role as a pivotal business and trade hub, enhancing its attractiveness as an investment destination by leveraging its superior logistics infrastructure, including some of the world’s best ports and airports and maximising its ability to harness the vast talent pool available. The new master plan will help strengthen Dubai’s efforts to mitigate the repercussions of the Covid-19 pandemic, accelerate the pace of its economic recovery and prepare the ground for a bright new post-pandemic world.
Research Konnection is one of the leading market research companies in Dubai and UAE. Please feel free to reach out on firstname.lastname@example.org to discuss about successfully entering the UAE market, Market Research, Business Plan Development, and Business Setup or Expansion. …March 21, 2021
UAE Foreign Exchange Industry Experts Positive of Economic Recovery in 2021
The year 2020 saw a drop in remittances value by 10-15%, because of the Covid-19 pandemic. Despite the drop in remittances value by 10-15% in 2020, the UAE’s foreign exchange industry executives remain confident in recovery mainly due to the increase in economic activity, Covid-19 management by the government and the return of expat workers to the UAE being the major contributing factors for the increase in remittance flows.
UAE Foreign Exchange Industry Experts View
Joyalukkas Exchange – Antony Jos, MD – Joyalukkas Exchange & Treasurer at the Foreign Exchange and Remittance Group (FERG), expects growth in remittances this year on the back of a strong rebound in the economy, strong vaccination drive, firmer oil prices, Expo 2020 Dubai and the opening up of the Israel market to UAE businesses.
Lulu Financial Holdings – Adeeb Ahamed – MD Lulu Financial Holdings said that the outlook for UAE remittances is positive for 2021 and the Lulu Group remains bullish in their views for the remittance and foreign exchange business. Ahamed said a revival of the economic activity will be a huge boost to the business along with Covid-19 management by the UAE government, the return of expat workers to the UAE and better job opportunities which will influence the remittance flows.
Al Ghurair International Exchange – Imad Ul Malik, GM – Al Ghurair International Exchange & Joint Treasurer at FERG said that remittances from the UAE are expected to grow in 2021 as a result of the vaccination drive and opening up of the leisure and travel industry. Likewise, the opening of the leisure and travel industry is also an indication of the increased confidence in getting back to normality. The upcoming Expo 2020 will also reflect directly on the remittance industry in a positive manner.
Orient Exchange – Rajiv Raipancholia, CEO – Orient Exchange, said there is uncertainty on the outlook and does not expect a return to pre-pandemic levels this year. However, he stated that if more projects were launched this year, there will be demand for more migrant workers, which would lead to a bullish outlook for remittances.
UAE Coronavirus Cases Decreasing
UAE was seeing a gradual decrease in the infection rates, as 52.46% of the population has received the Covid-19 vaccine according to the National Emergency Crisis and Disaster Management Authority (NCEMA) which is a positive sign and a step to recovery and resuming normal life in the country. Daily Covid-19 cases in the UAE dipped below 2,000 for the first time in more than two months, with 1,898 new cases reported on March 15.
UAE Economic Recovery 2021 Strategy
The post-COVID 19 will give rise to new business patterns with governments playing a key role in the national economy, leading to substantial investments in digital infrastructure, 5G networks, Smart Cities & Services, health, education and trade.
The measures taken by the government to control the Covid-19 and vaccinate against the population, will accelerate the pace of economic recovery by increasing the willingness of international investors to visit the Emirates. Furthermore, Dubai extended the freeze on government fees to support the local economy and businesses. The decisions taken by the Dubai government, reflects the government’s supportive and investor-friendly environment which will continue even beyond Expo 2020. Even though the Expo will end on March 31, 2022, the investors and businesses that are operating in Dubai will continue to benefit from these supportive measures till early 2023.
Research Konnection is one of the leading market research companies in UAE. Please feel free to reach out on email@example.com for Market Research in Dubai & Abu Dhabi, Business Idea / Concept Validation, Business Plan Development, Business Setup or Expansion and UAE Market Entry.…March 18, 2021