UAE economy has passed recovery phase, on to growth path: Minister

The UAE economy has passed the recovery phase and is registering growth in key indicators, according to the Minister of Economy Abdulla bin Touq.

The national economy is in a “strong position” and stands at “high readiness” for the future, the UAE Media Office said in a tweet, citing Touq.  

Since the Covid-19 outbreak began last year, the UAE has spent billions of dirhams on economic stimulus measures to support businesses. The non-oil private sector grew in October due to an easing of Covid-19 restrictions, a rise in tourism and increased spending.

In October, UAE’s headline PMI climbed to 55.7 from 53.3 in September, reflecting a substantial increase in new business driven by rising spending amid Expo 2020 Dubai opening. Anything below 50 indicates an economic contraction.

This year, the UAE economy has recovered strongly thanks to fiscal and monetary support, as well as other government measures.

The Central Bank of the UAE announced a stimulus package totaling Dh100 billion ($27.2 billion), comprising a direct injection of Dh50 billion through zero-cost collateralised loans.

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

According to the central bank’s second-quarter review, the UAE economy is predicted to grow 2,1 percent this year due to pandemic-mitigation measures.

In 2022, the economy is expected to grow by 4.2 percent, higher than the previous forecast of 3.8 percent.