UAE: 3.6 % growth of non-oil GDP by end-2021

Pandemic economic support packages and initiatives provided by federal and local governments have reached more than AED388 billion.

Published 13 Dec,2020 via Asharq Alawsat (English Edition) - The UAE’s non-oil GDP is expected to grow by 3.6 percent by the end of 2021, the Central Bank of the UAE (CBUSE) has estimated.

Its report comes as the committee responsible for the coordination and follow up of the implementation of the UAE’s economic recovery plan held its second meeting on Saturday, during which it reviewed the progress in the 15 initiatives of the first phase, revealing that 46 percent of implementations has been completed so far.

Major initiatives have been enacted to date, including amendments to the bankruptcy law, allocation of grants and incentives to tourism establishments and promotion of foreign direct investment through amendments to the commercial companies’ law.

Others are amendments to the commercial transactions law and the decriminalization of cheques without balance, reduction of fees and taxes on the tourism sector, enhancing the flexibility of labor market and the comprehensive targeted economic support plan directed by the central bank to enhance liquidity in the financial and banking sector in the country.

“The UAE has made new and important strides in supporting the national economy and accelerating the pace of recovery of various vital sectors from the impact of the COVID-19 pandemic,” said Minister of Economy Abdulla Bin Touq Al Marri.

“The total value of economic support packages and initiatives provided by the federal and local governments since the onset of the pandemic has reached more than AED388 billion (USD105.6 billion). These measures have contributed to business continuity, increased momentum of commercial activities, and have strengthened their ability to grow and compete in various vital sectors,” he added.

Saif Hadef Al-Shamsi, deputy governor at Central Bank of UAE, said that more than 310,000 individual clients, nearly 10,000 small and medium enterprises, and more than 1,500 private sector companies have benefited from the loan deferral program included in the support plan.

The domestic credit growth during the year until the end of October grew by 2.6 percent, he added.

“The Central Bank maintains its role in following up the measures taken by extending the implementation period of the main elements of the targeted Comprehensive Economic Support Scheme package for an additional six months until the end of June 2021.

“From January 1, 2021, banks and financing companies benefiting from the zero-cost central bank facilities will be able to grant new loans and facilities to their clients economically affected by the epidemic,” Shamsi added.

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