The New Stimulus Packages involve the three-stage “flexible packages" which are formulated to help in the UAE economy growth along with profuse steps to encourage investments and the labour market in the Emirates.
The whole programme aims to establish various economical factors based on businesses, creating future opportunities while upgrading with the technology. The main key features include economic solidarity and also expansion and creation of new businesses in UAE.
Initiatives to bolster UAE economy
This vision concerned with the boost up in the UAE economy was proposed by Abdullah Bin Touq Al Marri, new Minister of Economy.
A new committee for the same is also being set up to reinforce and observe the implementation of 33 initiatives, which would be headed by the Minister of Economy.
After a subsequent meeting at the Presidential Palace, the initiatives were approved by the UAE Cabinet on August 3, 2020.
Measures to reestablish economic environment
Since the successive downfall in the statistics due to the COVID-19 pandemic, there was a huge competition to sustain in the market.
There are certain vital steps that are taken in the direction of safeguarding businesses by cutting down the employer recruitment cost, budget allocation to ventures, setting up a virtual labour market and also a policy to renew the visas of workers automatically which would allow individuals to stay at the workplace without going through the visa renewal process.
These measures are seen as the key features that could assist in the resurrection of the UAE economy.
Financial aid by Central Bank of UAE
Amidst the pandemic, when the situation became lamentable every month economically, there was no ray of hope that could be seen by the businesses and heads.
In March 2020, the Central Bank of UAE proffered an amount of Dh256 billion ($70 billion) stimulus package to help the businesses sustain in the pandemic.
Businesses Setups in UAE revamps
In the month of July, positive economic growth statistics were observed in the Emirates.
UAE's non-oil private sector showcased a sign of growth last month, giving hope for an economically stronger future in the coming months.
According to the data from the UAE Purchasing Managers' Index, the ease in the restrictions after the lockdown during this situation of pandemic resulted in a marginal rise in the UAE economy.
The numbers went up from 50.4 to 50.8 in July. This positive rise in the statistics has opened up doors for new ventures to start along with reestablishing the business setups in UAE in the upcoming months.
Though during all these months of low economic flow, there were no new opportunities for hiring and labour but believing the rise in the economy post the Expo 2020, a lot can be expected.
The Expo 2020 is seen as a boost up for the economy, which is currently experiencing a hiccup due to pandemic.
According to the state news agency, the small and medium-sized enterprises (SMEs) would be aided in the first stage of the plan proposed in order to encourage tourism in UAE.
The other two stages of the plan would be focusing more on the sustainability of businesses, which would, in turn, assist in the overall growth of the market in UAE.
Downfall in the UAE economy due to pandemic
- During this COVID-19 pandemic, there has been a significant dent in the UAE economy, as observed in these recent months.
- With no new setups and hiring to cut down in the labour market this year is observed with a low graph of the economy.
- The Central Bank of UAE affirms the downfall in the graph of the UAE economy at the end of this year by 4.1%.
- The non-oil private sector is expected to experience a huge fall by the end of this year due to the pandemic.
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