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.



Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
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Attractive Environment Drives Surge in Private Tourism Facilities in Saudi Arabia

Visitors flock to one of the events of “Riyadh Season 2024” (SPA)
Visitors flock to one of the events of “Riyadh Season 2024” (SPA)

As Saudi Arabia experiences a surge in visitor numbers, there is a growing need to expand tourism infrastructure to keep up with demand.

In this context, the private facilities sector has emerged as a practical solution, contributing positively to increasing the income of local citizens who own these facilities.

This growth is reflected in the significant rise in the number of licenses granted by the Ministry of Tourism, which saw an increase of 333% in 2024 compared to the previous year.

In January, the Ministry of Tourism announced a new mandate requiring booking platforms and apps to exclude or refrain from listing unlicensed private hospitality facilities.

This move aims to ensure the quality of services provided to both local and international tourists across the Kingdom. The Ministry warned that any platforms violating this directive would face penalties.

This initiative is part of a campaign which seeks to enforce compliance with tourism licensing standards and regulations, ensuring facilities meet the criteria outlined in the Kingdom's Tourism Law and its accompanying regulations.

According to preliminary data from the Ministry of Tourism, the number of licenses issued for private hospitality facilities reached 8,357 last year, compared to 1,929 licenses in 2023.

Under the Kingdom’s Tourism Law, a private hospitality facility is defined as “any furnished and independent property unit, owned by an individual, licensed by the Ministry of Tourism, and offering daily accommodation services for a fee.”

Ministry spokesperson Mohammed Al Rasasimah emphasized that the growing number of licenses issued for private hospitality facilities reflects the ministry’s commitment to enabling individual investors in the hospitality sector to obtain the necessary operating licenses.

This initiative aims to enhance the quality of services provided.

He added that these efforts are part of the "Guests Are Our Priority" campaign, which seeks to strengthen compliance with licensing and classification standards and ensure facilities meet the conditions set out in the Tourism Law and its regulations.

Dr. Salem Baajajah, an economic expert and professor at King Abdulaziz University, told Asharq Al-Awsat that the significant growth in hospitality and tourism facilities is a result of the Ministry of Tourism's efforts to attract foreign investors.

He added that this expansion reflects a growing demand from international investors seeking to capitalize on opportunities in Saudi Arabia, aligned with the Kingdom’s Vision 2030 goal of increasing the number of tourists visiting Saudi Arabia.

He further explained that the tourism sector is experiencing notable growth, contributing to higher revenues for local citizens.