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UAE plots new stimulus measures to bolster economy

UAE plots new stimulus measures to bolster economy

The UAE’s central bank had provided more than $70bn of stimulus by March to aid businesses

The United Arab Emirates will deliver a three-stage “flexible package” of measures to bolster the economy, including steps to support the labour market and encourage investment, state-run WAM reported on Wednesday.

Economy Minister Abdullah bin Touq Al-Marri said the proposals would provide “studied” stimulus packages.

The UAE’s central bank had provided more than Dhs256bn ($70bn) of stimulus by March to aid businesses amid the coronavirus pandemic. The minister didn’t provide further details.

Business conditions in the UAE saw a second straight monthly improvement, according to Purchasing Managers’ Index surveys compiled by IHS Markit published on Wednesday. But that hasn’t yet translated into job gains.

Read: Jobless recovery from virus takes shape for top 3 Arab economies

Employment continued to fall in the UAE, as well as Saudi Arabia and Egypt, despite a stronger pickup in non-oil private sector activity in July, according IHS Markit.

Small- and medium-sized enterprises will get support in the first stage of the plan, including through efforts to promote tourism, WAM reported. The following two stages will focus on sustainable long-term economic growth.

The UAE expects its non-oil economy to contract 4.1 per cent this year due to the pandemic, the central bank said in June.

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