A global pandemic never leaves behind happy smiling faces. In the case of the COVID 19 outbreak, well, we believe the comprehensive news reports speak for all of us when they advise severe caution to be taken to prevent infection. Coming to the current scenario in the middle eastern region, as of April 12th 2020, a whopping 3700 cases had sprung up in the Emirati nations. But where one notices the flaws of the UAE, we’ll be the first ones to let you know that the Worldometer website has ranked UAE on the 3rd position for the highest number of COVID 19 tests conducted per million of the population. The UAE is also credited as one of the few nations to have responded the quickest to the deadly outbreak announcing early lockdowns in busy emirates such as Dubai and Abu Dhabi, shutting down schools and offices. An effort to encourage home quarantine, and also conducting door-to-door checks in the congested areas to stop the spread.
But where one problem is solved, another arises which in this case can be said about the economy of the Middle Eastern Nations. Although the oil-powered Arab economy continues to stabilize, many major industries have taken a point-blank hit making them hard to recover even during socio-economic normalization. A contradicting statement to the current scenario could also be that in the future, when the industry calms the wreckage of the storm, there is hope for the emergence of new companies leading to more and more entrepreneurs wanting to set up business in the UAE. But sticking to the current scenario, let us analyze the various ways in which the Coronavirus pandemic could impact the Middle Eastern Economies.
An Overview of the Possible Impacts
We have analyzed various adverse impacts as well as opportunities during times of crisis that innovative minds are adapting to for doing business in the UAE, which happens to be the crown jewel of the Middle Eastern business ecosystem. This is the reason why business setup services in Dubai and various other Emirati locations are highly acclaimed during these desperate times.
1. Damage to many Industries that Largely Contributed to Overall Gulf Economy
Well, let us take a quick collateral count of the sectors that are barely managing to get by during these tough times, which contributed to more than 50% of the overall gulf economy. The various business sectors are – Education, Hospitality, Entertainment, Tourism, Luxury Retail, and the massively contributing SME industry. The SME industry in UAE alone contributes to 52% of the nation’s non-oil GDP.
The UAE in the Middle Eastern region is one of the hardest to be hit economically as the government had monumentally invested in various Nationwide campaigns to enhance sustainability, smart city initiatives and also standardized Emirati crypto networks and blockchain technology to encourage new and innovative business owners to set up business in the UAE. Not to forget that this year, the alpha Emirate of the UAE known for its exorbitantly glamorous events was supposed to host the Dubai Expo 2020, which is now in talks to be postponed to a later date.
2. Opportunities to Create a Semi-Digitised Economy
The gulf nations in the middle east are prosperous business locations that have been succeeding on a partially orthodox model where the art of personal touch and intercommunication is a must need to conduct business. Therefore, it is hard to fathom the Arab business market slowly evolving into a Semi-digitised economy due to the regulations of social distancing and home quarantine. But believe it or not, the current situations have led many business owners to run their companies entirely from the comfort of their homes through various virtual office platforms. Amidst the time of crisis, many new business owners register the business from home to make this time productive to grow their business virtually.
3. Scope for Private-Public Inclusive Economy in the Future
Many of us who analyze the Middle Eastern corporate sector have observed how frequently the government frames policies and initiatives in the development of businesses, whether they are small and medium enterprises or Foreign Multi-national Companies. This depicts the inclusion of the government in building a healthy economy by cohesively working with private entities to increase employment opportunities as well as improve the standard of living. Even during the current lockdown period, the government has initiated various campaigns partnering with private entities to target issues such as – Mental Healthcare during Quarantine, Free Healthcare packages for scanning and treatment of COVID 19, and offering health insurance policies.
How can Commitbiz Help?
In these challenging times, we only wish for the best, hoping you are staying home and safe. The slight downside in the economy has inspired some ardent businessmen to start a new business from the comfort of their homes using many digital tools and virtual platforms. With a well-established network in the Arab market and tailor-made business setup services in UAE, we assure you that we will support along the way. Now register your business from the convenience of your home, incorporating your company in a matter of ten working days and also avail of our services to register for an Offshore bank account. Contact us to know more.