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UAE economy in “strong position” and growing, says the minister

The UAE economy is behind the recovery phase and is showing growth in key indicators, according to the government.

The economy is in a “strong position” and is in a “high readiness” for the future, said the UAE media office in a tweet, citing Economy Minister Abdulla bin Touq.

The United Arab Emirates, which in August 2020  -proved 33 initiatives to assist various sectors during the Covid-19 pandemic, announced that progress on the three-phase plan is underway.

The first phase of the recovery and economic development plan, which was directly assisting businesses, is 100 percent complete, the UAE media office said, citing the committee tasked with coordinating and tracking the implementation of the 33 initiatives.

The second phase, which provides sectors with complementary support to enable r -id economic recovery, is 50 percent complete, it said.

In the third phase there will be “integrated support for vital sectors and open a sustainable and flexible development path for the economy,” said the Ministry of Economic Affairs.

The UAE has spent billions of dirhams on stimulus measures in support of businesses since the Covid-19 outbreak began last year.

Business in the non-oil private sectors of the Arab world’s second largest economy continued to improve in October, boosted by the easing of Covid-19 restrictions, a surge in tourism and higher spending as the economy recovered.

The UAE’s headline PMI rose from 53.3 in September to 55.7 in October, underpinning a significant surge in new business over the month, driven by rising spending during the 2020 Expo Dubai opening.

Anything above 50 indicates economic expansion, while anything below that indicates contraction.

The UAE cabinet, headed by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai,  -proved the launch of 33 initiatives to support various economic sectors on August 3, 2020.

According to the state news agency Wam, it also  -proved the formation of an interim committee to oversee measures to implement the 33 initiatives, increase growth rates and create a stimulating environment for businesses.

The Committee will open up new opportunities by developing emerging sectors, leveraging technology, stimulating investment in new sectors and improving the sustainability and resilience of the national economy.

The UAE economy has recovered strongly this year, aided by fiscal and monetary support and other government measures.

The stimulus announced by the Central Bank of the United Arab Emirates included a package of Dh 100 billion (USD 27.2 billion) and a direct injection of Dh 50 billion in secured loans at zero cost.

The Targeted Economic Support Scheme (Tess) benefited both people and businesses, helping banks manage liquidity during the crisis.

Although the central bank said in September that it would begin a “gradual and well-calibrated withdrawal” of Tess, some of which was extended through July 2022, about “95 percent of banks have given up Tess because they no longer need it.” That said Abdulaziz Al Ghurair, chairman of the banking association of the United Arab Emirates, in October.

It is an indication of the economic recovery as customers “have no difficulty or need any assistance,” he said.

“It is a very good sign when the banks voluntarily forego support,” said Al Ghurair. “I don’t think we need any support from the central bank. I think the central bank, the government and the country have done enough to support different parts of the economy. “

The UAE’s economy is expected to grow 2.1 percent this year, fueled by measures taken to contain the pandemic, according to the central bank’s report in the second quarter.

The economy is expected to grow by 4.2 percent in 2022, above the previous forecast of 3.8 percent.

A r -id Covid-19 vaccination program and widespread testing in the United Arab Emirates have also boosted economic activity.

Updated: November 7, 2021, 9:30 a.m.

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