Dubai has undiminishable vision and with the same grit it has started towards a post-Covid economy
Dubai has undiminishable vision and with the same grit it has started towards a post-Covid economy. Dubai is a testament to how to come out of a pandemic like a pro.
For investors around the world, the UAE has always been a haven. The country is amongst the top 20 countries in the world where one can do business with ease.
UAE has recently announced reforms such as golden visas and retirement residencies. These reforms have contributed to the attraction of this location also.
Dubai provides some perks for starting up business there. Being able to set up a company in about seven days and getting a visa in three are among them.
The main differentiator between Dubai and other financial capitals is that others have been quick to compare the Covid-19 induced economic climate to the global recession in 2008.
But the 2008 crisis was a ‘Demand Side’ crisis, whereby the supplies were readily available, absence of liquidity was curbing the demand. On the other hand Covid-19 situation is a ‘Supply Side’ crisis. We know that people want to travel – but cannot because airport shutdowns don’t allow so. People could not do anything they wanted because their demand did not get the supply.
So, when a crisis is very different, it needs to be tackled differently. It is a healthcare crisis and hence requires curbing of the pandemic, strengthening of the healthcare system and vaccinating the population. That is what the UAE did. It was inducing smart lockdowns, increased testing, and Vaccination planning. Dubai has smartly introduced ways in which confidence can be restored.
The governments had to shut industries, shops, other businesses , in response to COVID-19 and this led to individuals losing jobs. But unlike other economies, Dubai has been able to find a working formula to enable individuals and businesses to get acclimated to a post-Covid economy by taking the first steps towards it.
Individual emirates along with the UAE cabinet had announced fiscal packages and programs to enable businesses to get back up and running. According to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, ‘the UAE is striving to have the fastest-recovering economy in the world and the most stable and diversified economy in the long term’.
The UAE economy will have a fast recovery from the impact of COVID-19 and an overall transformation. The friendly business, excellent infrastructure , and political stability of the nation are factors for encouraging Foreign Direct Investment (FDI) inflow.