UAE Economy Performs Better Than Expected, on Track Towards Recovery in 2021
Proactive measures, incentive packages bear fruit, highlight the country’s speed and flexibility in responding to global changes.
The UAE economy performed better than expected in 2020 despite the current global challenges brought about by the COVID-19 pandemic. Said Abdulla bin Touq Al Mari, Minister of Economic, following the preliminary issuance results of the country’s economic performance by the Federal Competitiveness and Statistics Centre.
The results highlight the effectiveness of the proactive economic measures and incentive packages rolled out by the UAE government. Based on policies that highlight the country’s speed and flexibility in responding to global changes, and its constant efforts to promote economic diversification.
The preliminary results of the UAE’s economic performance for 2020 revealed that the country’s macroeconomic indicators had seen a relatively limited decline in gross domestic product. And in the non-oil GDP last year by 6.1 percent and 6.2 percent, respectively, at constant (real) prices compared to 2019. This is a comparatively low decline considering that the slump in major global economies reached several times lower.
Al Mari indicated that 2020 was an unprecedented year full of economic and health challenges that negatively impacted major global economies. And the UAE was not immune to the global economic system in this vulnerability. This is particularly so since the country’s economy is linked through foreign trade, foreign investment, tourism, and the logistical sector, with the movement of trade and investment and global transportation, which declined significantly in 2020 worldwide.
However, the government’s proactive economic policies in dealing with the repercussions of the crisis. And the launch of supportive economic packages had a positive role in limiting the negative effects of the pandemic on various vital sectors and on economic activity in particular.