Analysts say the UAE is more resilient than its GCC counterparts, and its economy will overcome the current pandemic crisis with the help of new age technologies.
The nation has a history of being better at recovering from challenges, and new age technology will help the most.
Sarwant Singh, managing partner at Frost & Sullivan, said the UAE is doing better when it comes to recovering as seen in previous recessions.
However, this time a little different.
“Covid-19 is having a very severe impact on some of the core sectors in the UAE such as hospitality, retail, real estate and aviation. Therefore, this time I feel that the UAE does not necessarily have an advantage over its GCC counterparts, and future economic policies will provide evidence.
On the speed of its recovery, future policies now point to a stronger push towards diversification - a trend that will gain momentum across the GCC in general. ”
He added, "The UAE's focus on next-generation growth industries such as education technology, games, financial technology, health technology, high-tech manufacturing, and its commitment to building a circular economy will help overcome this contraction successfully by attracting new foreign direct investment."
To support business and the macro economy, the governments of the GCC countries have allocated 2% to 30% of their GDP in economic stimulus packages, and the business environment in the region will witness a transformation that will have a far-reaching impact on economic trends and social dynamics.
Moreover, with the boom in digital penetration in the next decade, the non-oil sectors of the GCC - retail, healthcare, education, mega projects, and renewable energy - will continue to dominate the economy, says Frost & Sullivan.
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority, said during a virtual press conference held recently that the start of the year was difficult for everyone, including the United Arab Emirates.
"The only sector that has stopped is the restaurants. But other than that, good growth has been observed in other sectors. By the end of the year, we will see a very good opportunity as the situation will be better. Compared to the beginning of the year, we will be much better than any other country in terms of production."