UAE Outlines Economic Strategy to Face COVID-19 in Two Phases

The most prominent sectors with future potential represented in the digital economy include artificial intelligence, the Internet of things and smart cities, concepts and green economy industries (AFP)
The most prominent sectors with future potential represented in the digital economy include artificial intelligence, the Internet of things and smart cities, concepts and green economy industries (AFP)
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UAE Outlines Economic Strategy to Face COVID-19 in Two Phases

The most prominent sectors with future potential represented in the digital economy include artificial intelligence, the Internet of things and smart cities, concepts and green economy industries (AFP)
The most prominent sectors with future potential represented in the digital economy include artificial intelligence, the Internet of things and smart cities, concepts and green economy industries (AFP)

The United Arab Emirates (UAE) has outlined its economic strategy to face the coronavirus outbreak and said it is based on two main phases.

According to the Undersecretary of the Ministry of Finance (MoF), Younis Haji al-Khoury, the first is on the short-term.

He said it is the gradual opening of the economy and business activities, while taking into consideration the imposed health measures, and the provision of huge economic support and stimulus plans to the most affected sectors.

Khoury noted that the value of the support provided by the government has amounted to AED282.5 billion ($76.8 billion), in addition to protecting entrepreneurs and small and medium sized enterprises (SMEs) and linking the funds to the beneficiary sectors based on well-defined plans and effective mechanisms.

The second phase, he added, is a long term stimulus economic plan.

It aims at accelerating recovery, advancing growth and working to transform challenges into opportunities to achieve sustainable economic growth by enhancing the flexibility and sustainability of the economic model. It also encourages financing and investment in sectors with high future potential.

Khoury affirmed that UAE’s national economy is strong and resilient and has the ability to overcome such crises.

He also reviewed in the MoF’s e-newsletter, dubbed MoF Index, the most significant sectors with future potentials.

These are the digital economy, which includes artificial intelligence (AI), 5G, IOT, smart cities, and green economy concepts and industries such as renewable energy, electric cars, and circular economy, as well as enhancing productivity by integrating 3D printing technologies and robotics and promoting food security using advanced technologies such as AI, biotechnology, and genetic engineering.

Technology plays a vital role in identifying the industries that are of value-added and localizable, he stressed, adding that this ­is contributes to the UAE’s economic diversification.

In regards to the programs and projects the MoF will launch to manage the next stage, Khoury said the ministry is working on proposing the required policies, legislations, and incentives to support opportunities for the industry across the country.

“This would ensure self-sufficiency and preparation for any future challenges.”

“We will also launch programs to support the health, education, technology, and food security sectors – placing the human factor as the basis of comprehensive development,” he added.

The ministry has also continued to work with the international community to ensure that the UAE builds an economic and geopolitical system that addresses and contains health and environmental disasters and mitigates their effects.

Asked about the ministry’s priorities in the post COVID-19 phases, the MoF Undersecretary said it will submit proposals for draft laws and legislation that address the effects of the global pandemic on the nation.

“We are also working on action plans and setting specific goals to meet urgent development needs.”

He further highlighted addressing the current challenges posed by the novel coronavirus and taking into account the developments in the economic, developmental, community, service, and technological sectors.

On the possibility of announcing an incentive package, Khoury said the MoF makes great efforts to analyze the effects of the pandemic, and it reviews all procedures and re-evaluates fees and assesses the extent of their contribution to reducing the effects of the pandemic.



Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Slips as Iran-Israel Conflict Enters Sixth Day

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices fell on Wednesday, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct US involvement.

Brent crude futures fell 93 cents, or 1.2%, to $75.52 a barrel by 0918 GMT. US West Texas Intermediate crude futures fell 88 cents, also 1.2%, to $73.96 per barrel.

US President Trump warned on social media on Tuesday that US patience was wearing thin, and called for an "unconditional surrender" from Iran.

While he said there was no intention to kill Iran's leader Ali Khamenei "for now," his comments suggested a tougher stance toward Iran as he weighs whether to deepen US involvement.

A source familiar with internal discussions said one of the options Trump and his team are considering included joining Israel on strikes against Iranian nuclear sites.

A direct US involvement threatens to widen the confrontation further, putting energy infrastructure in the region at higher risk of attack, analysts say.

"The biggest fear for the oil market is the shutdown of the Strait of Hormuz," ING analysts said in a note.

"Almost a third of global seaborne oil trade moves through this chokepoint. A significant disruption to these flows would be enough to push prices to $120 [a barrel]," the bank added.

Iran is OPEC's third-largest producer, extracting about 3.3 million barrels per day (bpd) of crude oil.

Meanwhile, Iranian ambassador to the United Nations in Geneva Ali Bahreini said on Wednesday that Tehran has conveyed to Washington that it will respond firmly to the United States if it becomes directly involved in Israel's military campaign.

Markets are also looking ahead to a second day of US Federal Reserve discussions on Wednesday, in which the central bank is expected to leave its benchmark overnight interest rate in the range of 4.25% to 4.50%.

However, the conflict in the Middle East and the risk of slowing global growth could potentially push the Fed to cut rates by 25 basis points in July, sooner than the market's current expectation of September, said Tony Sycamore, market analyst with IG.

Lower interest rates generally boost economic growth and demand for oil.

Confounding the decision for the Fed, however, is the Middle East conflict's potential creation of a new source of inflation via surging oil prices.

US crude stocks fell by 10.1 million barrels in the week ended June 13, market sources told Reuters, citing American Petroleum Institute figures on Tuesday. Official Energy Information Administration data is due later on Wednesday.