The government of the UAE launched a new round of economic relief packages, austerity measures, and state-backed benefits as the number of COVID-19 cases in the Middle East and North Africa (MENA) region grows.
A provisional committee has been set up by the Cabinet to deal with the negative impacts of coronavirus on the national economy. The Committee is chaired by Sultan Saeed Al Mansouri, Ministry of Economy. It comprises of representatives from various competent bodies, as part of government precautionary measures to tackle the consequences of the spread of the COVID-19 virus on the economy.
The move is part of the proposed measures to boost the national economy and its various activities. It follows the Cabinet's approval of a Dh16 billion stimulus economic package of initiatives to support the sustainability of businesses and provide an added impetus to the national economy, complementing the new economic packages declared by the Abu Dhabi government, Dubai and the Central Bank, totaling Dh126.5 billion.
The Committee will recommend measures to reduce the negative consequences of the COVID-19 coronavirus on the UAE’s human resources and economic sector. Additionally, it will submit its suggestions and proposal plans to the Cabinet and coordinate the execution of its proposed measures with various federal and local authorities when needed.
The Committee should emphasize the implementation of projected measures in line with their objectives. It is instructed to assess the actual impact of the proposed rules and their efficiency to deal with the economic progresses resulting from the COVID outbreak. The Committee will submit to the Cabinet weekly reports on economic developments and the economic situation under the current conditions.
Socio-Economic Impact on GCC
The rapid spread of COVID-19 illness has deeply impacted day-to-day life in GCC. The UAE has closed significant tourism and cultural destinations. Every Emirate in the UAE is taking proactive measures to fight the virus.
In Abu Dhabi, the DED issued two separate circulars to owners of entertainment halls, including movie theatres, and videogame centers and lounges, to suspend their operations.
Dubai has also canceled all the events planned for March, with hotels asked to stop hosting wedding celebrations.
The most notable event suspension has emerged from Bahrain, which postponed the 2020 Formula 1 Gulf Air Bahrain Grand Prix event.
Oman has followed the UAE, Saudi Arabia, Bahrain, and Kuwait in temporarily closing schools and universities in the country.
It is safe to say that businesses will also have a significant impact due to close-downs of manufacturing factories, employees working from home, and no sale of products and services. The operational cost will be more than one could imagine.
The other side of the story is the entrepreneurs/investors who want to invest in the UAE or set up their business cannot do so due to the lockdown. To tackle this issue, we at Commitbiz have started a new initiative #StartFromHome. If you are planning to start your business operations in the UAE after COVID-19 subsides, you can utilize these weeks to kick-start your company in the UAE – that too, from the convenience of your home.
In short, you are incorporating your business remotely.
To know more about the same, contact us today, our consultants will be glad to assist you.