Saturday 19 December 2020
The committee responsible for the coordination and follow-up of the implementation of the economic recovery plan reviewed progress in implementing the 15 initiatives of the first phase, revealing that 46% has been completed.
Major initiatives implemented to date include amendments to the bankruptcy law, allocation of grants and incentives to tourism establishments, promotion of foreign direct investment (FDI) through amendments to the commercial companies law, amendments to the commercial transactions law, and the decriminalization of cheques without balance, reduction of fees and taxes on the tourism sector, enhancing flexibility of labor market, the comprehensive targeted economic support plan directed by the Central Bank to enhance liquidity in the financial and banking sector in the country.
The committee focused on the accomplishments under each of the six tracks of the initiatives package, which include empowerment of the new economy and development of priority sectors; opening of new markets locally and internationally; provision of financing support and facilitation of lending; tourism promotion; attraction and retention of talent; and stimulation of innovation.
The UAE Central Bank estimates an expected growth of 3.6% in the country's non-oil GDP by the end of 2021.The committee underlined the importance of further enhancing the confidence of investors and business owners in the country’s markets and increasing the competitiveness of vital economic sectors. It noted that the initiatives implemented during the past weeks, including the amendments to the Commercial Transactions Law regarding the decriminalization of cheques without balance, amendments to the bankruptcy law as well as to the Commercial Companies Law, represent important and major steps towards the achievement of this development goal, and serve as key enablers for the country’s economic advancement.
The value of economic support packages and initiatives provided by the federal and local governments since the onset of the COVID-19 pandemic has reached more than AED 388 billion (USD 105 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.