Under the chairmanship of Minister of Economy Abdulla Bin Touq Al Marri, the committee, responsible for coordinating and following up the implementation of the UAE's economic recovery plan, held its second meeting on Sunday.

Besides Al Marri, other committee members who participated in the meeting included Nasser bin Thani Al Hamli, Minister of Human Resources and Emiratisation; Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs; Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications; Sarah bint Yousif Al Amiri, Minister of State for Advanced Technology; Abdulla Mohammed Al Basti, Secretary-General of the Dubai Executive Council; SaifHadef Al Shamsi, Deputy Governor of the Central Bank of the UAE; and Dr. Mohamed Rashed Al Hameli, Secretary-General of the Abu Dhabi Executive Council; along with Ahmed bin Lahej Al Falasi, Director-General of the Federal Customs Authority (FCA).

During the meeting, the committee reviewed the progress of the 15 initiatives launched in the first phase which revealed that 46 percent of their implementation has been completed successfully so far. To date, key initiatives that have been implemented include the amendments to the bankruptcy law, promotion of foreign direct investment (FDI) through amendments to the commercial companies law, allocation of grants and incentives to tourism establishments, amendments to the commercial transactions law as well as the decriminalization of cheques without balance. The ministry has also reduced fees and taxes on the tourism sector, ensured efforts to enhance the flexibility of the labor market, in addition to the comprehensive targeted economic support plan facilitated by the Central Bank with the aim of boosting liquidity in the banking and financial sector in the UAE.

Members briefed the committee about the efforts taken by concerned authorities to coordinate and follow-up on the implementation of these initiatives at the first stage and enhance their outcomes. In this regard, they expressed their keenness to measure the impact of the initiatives with the aim of ensuring the desired immediate support for various economic sectors and supported the recovery of the national economy.

At the same time, the committee discussed the achievements of each of the six tracks of the initiatives package. These accomplishments included the empowerment of the new economy and development of key sectors as well as tourism promotion, opening of new markets at local and international level, encouraging innovation, provision of financing support and facilitation of lending and attraction and retention of talent.

The UAE Central Bank has predicted an expected growth of 3.6% in the non-oil GDP of the country by the end of 2021. In this regard, the committee highlighted the significance of boosting the confidence of investors and business owners in the UAE markets and enhancing the competitiveness of key economic sectors.

Over the past few weeks, initiatives such as the amendments to the Commercial Transactions Law in line with the decriminalization of cheques without balance and amendments to the bankruptcy law and the Commercial Companies Law, constitute pioneering steps to achieve the development goal and support the country’s economic advancement.

Speaking in this regard, Bin Touq Al Marri stated that it was due to the unlimited support and visionary guidance of the UAE leadership that helped the country make new and significant strides to support the recovery of the national economy from COVID-19 repercussions and accelerate the growth of various vital sectors.

The total value of economic support packages and initiatives that the federal and local governments since the pandemic outbreak have reached over AED 388 billion. These initiatives have helped in enhancing business continuity, increasing the momentum of commercial activities, and strengthening their potential to develop in various key sectors.

Bin Touq added that the UAE's wise leadership prioritized the protection, support and development of the economy according to a sustainable model in line with the strategy of the government. He affirmed that the efforts will continue in the coming time to fulfill the implementation of each state within their specified timeframe.

"We are continuing our efforts to complete the implementation of initiatives of the recovery plan according to the approved schedule. The overall completion rate of the initiatives under the first phase is estimated today at more than 46 per cent," Bin Touq added.

He went onto praise the continuous efforts of the committee and its member authorities to review and follow up the progress of the implementation of the initiatives according to the specified mechanisms. He further hailed the efforts of the concerned work teams which supervised each initiative and made necessary modifications to ensure the flexibility of the initiatives. They aligned the modifications on the basis of needs and requirements of the business sectors in a bid to ensure safe access in the post-COVID phase with strong economic elements parallel to launching a long-term, sustainable development path for the national economy.

Minister of Human Resource and Emiratization Nasser bin Thani Al Hameli confirmed that the committee coordinated and followed up on the implementation of the UAE's economic recovery plan in line with the vision of the nation's wise leadership. He stated that the committee has been working in accordance with the UAE government’s rapid and proactive response to the COVID-19 pandemic repercussions. The committee functioned according to a working system designed on the basis of the roles and partnerships among various entities which helped in mitigating the impact of the pandemic crisis on the labour market in the country.

Support packages have been provided to maintain business continuity, secure investors' interests in the market and retain the existing workforce in the vital economic sectors of the country. These initiatives will accelerate the growth and development of these sectors, enabling employers to benefit from skills, expertise and competencies in the labor market. It will also enhance family stability by mobilising the potential of those working under family sponsorship.

He explained the implementation of two parallel tracks. In the first one - the operational cost of facilities was reduced to accommodate domestic foreign workers by cutting down the fees for the issuance of transfer permits of domestic foreign workers. Furthermore, fees for services to start doing business in the labour market were canceled and fees for all work permit services were reduced for small enterprises that account for 65 percent of the current market. Noting their significance and how pandemic affected these establishments, the authorities reduced the fees up to about 75 percent, while the fees for work permits for medium and large establishments were reduced to more than 25 percent.

In the other track, labour transfer procedures were carried out and labour market was made more flexible to encouraging companies to reveal employment data and foreign surplus labour through the ‘Virtual Labor Market.’ He stated that the measure was taken to address the needs of the labour market existing talents in the UAE and facilitate the issuance of transfer permits by private sector establishments for labour, noting that all restrictions have been lifted in accordance with specific regulations.

Within the framework of the support packages provided to employers, steps were taken to return the bank guarantee for private sector establishments. More than AED 5 billion has been provided to these establishments in 2020, after the labor insurance system was approved by the UAE Cabinet with the aim of replacing bank guarantees for employees.

Speaking in this regard, Dr. Ahmed Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs, added that the committee is working to fulfill the vision of the UAE's wise leadership and the national goal to facilitate the economic recovery across various vital sectors, particularly SMEs. Dr Al Falasi stressed the need for concerted efforts among the member bodies of the committee to ensure that programs and initiatives effectively restore momentum to business activities as soon as possible.

The committee was able to make progress in implementing the programs and initiatives of the first phase as it played a crucial role in supporting the continuity of economic operations of UAE businesses and SMEs. He added that currently, the tracks are working to provide liquidity to support businesses and facilitate lending to encourage sustainable growth of the SME sector in addition to boost sales and commercial success for entrepreneurs. A number of initiatives and incentives have also been implemented to support the growth of tourism establishments and the tourism sector as a key driver for sustainable growth and to maintain the health and safety standards. They are aimed at supporting the business continuity of various establishments including hotels, restaurants and other tourism facilities. The authorities have also eliminated a large number of fees and taxes related to the tourism sector in a bid to accelerate the revitalization of tourism in the country.

Dr. Al Falasi praised the crucial role played by local tourism authorities and departments across all emirates to support the efforts of the Ministry of Economy to boost the revival of the tourism sector in the post-pandemic process.

Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi expressed the Committee's commitment to continue its pioneering and supervisory role to encourage the implementation of government support programs that are aimed at developing the UAE as one of the world's fastest recovering countries from COVID-19 impact. He added that it was due to the continuous efforts of the concerned working groups and cooperation between all committee members that led to the high rate of progress in implementing the first phase of the initiatives.

He explained that the subsidy plan has been implemented to make economic activities more flexible, attract global talents, boost the abilities of Emirati professionals in collaboration with the Ministry of Human Resources and Emiratization, enhance the confidence level in the local business environment, and support operations of the UAE's exports in global markets to allow them to capture new markets. He stated that the In-country value program is one of the significant initiatives facilitated by the authorities to support national products and strengthen their competitiveness in international markets.

It was noted that the changes made to legislation supporting the economy are also equally significant, particularly the recent amendments made to the Commercial Companies Law and the liberalization of commercial and investment activities available to foreign investors. The authorities also allowed them 100 percent ownership of projects and companies as well as abolished the requirement for a citizen partner and the citizen services agent for branches of foreign companies.

Significantly, these laws have been implemented with the aim of increasing the flexibility and transparency of business activities and encourage the procedures, which will further add value to the ease of doing business, develop the local investment environment, facilitate better positioning of the country’s leadership and global competitiveness.

"We will continue to review the impact of the initiatives on economic activities in cooperation and coordination with various stakeholders to ensure that the packages deliver our desired outcomes" Dr Al Zeyoudi added.

Minister of State for Advanced Technology Sarah bint Yousef Al Amiri stated that a differentiated approach was employed for cooperation and joint action among stakeholders under the directives of the wise leadership with the aim of further strengthening the global positioning of the UAE and its economic recovery.

She noted that the leadership provided continuous support to install a system to mobilise the concerted efforts of various entities in a bid to achieve economic development based on a flexible, sustainable, and long-term model.

Al Amiri further explained that these initiatives have helped to effectively expedite the recovery of the UAE's industrial sector with the support of the Ministry of Industry and Advanced Technology. It is working for ensuring the best strategies to implement the measures and improve the capabilities aimed at strengthening the industrial sector and enhance its global competitiveness.

Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, asserted that the UAE has become one of the most capable and prepared countries in the world to address economic challenges with the continuous support of the wise leadership and its forward-looking vision that has focused on developing digital and technological infrastructure. It has also strengthened the preparedness of the government and its capabilities to respond to the pandemic crisis.

Al Olama added that these initiatives and stimulus packages have helped in enhancing the positive perception about the economic stability of the country and further securing its pioneering position in regard to new markets and exploring opportunities at both local and global levels.

"It also showed the country’s capability to keep its targets to achieve sustainable economic development in the long term by empowering government and private economic stakeholders through various financing support, enabling SMEs, entrepreneurs and manufacturers secure loans faster," Al Olama added.

He explained that it is the commitment of the UAE government to utilize advanced technologies, support national talents, and attract experts and professionals that has resulted in boosting the global competitiveness of the country across strategic and future sectors.

"The economic recovery plan’s focus on the digital economy reinforces the country’s transformation towards a ‘new economy’. In this respect, there is a growing need to continue our efforts to create an environment that stimulates business practices, as well as support the economic sectors in the short-term, medium-term, and long-term," he noted.

Abdullah Mohammed Al Basti, Secretary-General of the Executive Council of Dubai, lauded the continuous support of the wise leadership that has helped in opening new sustainable and flexible horizons for the national economy to address various challenges. Al Basti further welcomed the efforts of the Minister of Economy-led Committee on Coordination and Follow-up on the Implementation of the Economic Recovery Plan, highlighting its crucial role to ensure in implementing the economic recovery programs and initiatives according to their specified timelines.

He added that the Council is continuously working to achieve the goals of the wise leadership for the UAE economy while reinforcing the accomplishments it has achieved in sustainable development. In its first steps, the Committee focused on stimulating the economy through various measures and initiatives which had a positive impact on the efforts aimed at accelerating recovery in priority sectors, resulting in ensuring business continuity and progress of supply chains across various sectors impacted by COVID-19.

Finance Minister Undersecretary Younis Haji Al-Khoori stressed the significance of the committee's efforts aimed at boosting the competitiveness of the various economic sectors and ensure their financial stability. These efforts helped the national efforts to expedite the pace of economic recovery and promote a stable, sustainable, and attractive business environment for investors.

Al-Khoori hailed the proactive measures taken by the Ministry of Finance to support the business operations of Emirati entrepreneurs and owners of SMEs. These measures helped the business entrepreneurs to implement initiatives and develop policies with the key goal of improving the performance of the sector. He explained that one of the major initiatives implemented by the Ministry was the allocation of 20 percent of purchases in federal agencies to SMEs with the help of a new government procurement platform.

He affirmed that the UAE's strategy for the next 50 years has prioritized the development of the legislative and legal framework for businesses. In this regard, the Minister of Finance took a key step to amend the bankruptcy law with the aim of enhancing investor confidence in the local economy. It worked in line with the key goal of the Committee to facilitate comprehensive and sustainable development in the UAE.

"The new amendment formed part of the necessary frameworks to secure the necessary financial liquidity for companies and commercial establishments at present to facilitate their recovery and enhance their ability to overcome difficulties, further enhancing the country’s leading position as a global economic, financial, and commercial center," he added.

Speaking about the development, SaifHadef Al-Shamsi, Deputy Governor at Central Bank of UAE, affirmed that the Central Bank has been working in collaboration with its partners at the Committee on Coordination and Follow-up on the Implementation of the Economic Recovery Plan and Development to successfully implement the comprehensive targeted economic support plan to help the financial sector manage its liquidity and help individual customers and companies impacted by the COVID-19 pandemic.

Support plan's loan deferral program has benefitted over 310,000 individual clients, approximately 10,000 small and medium enterprises (SMEs), and more than 1,500 private sector companies in the process. At the same time, the domestic credit growth during the year has also grown by 2.6 percent until the end of October.

Al Shamsi added that the Central Bank will continue with its role to follow up on the initiatives implemented by the authorities by extending the implementation period of the main elements of the targeted Comprehensive Economic Support Scheme package for an additional six months until the end of June 2021.

"From January 1, 2021, banks and financing companies benefiting from the zero-cost central bank facilities will be able to grant new loans and facilities to their clients economically affected by the epidemic." Al Shamsi said.

Dr. Mohammad Rashid Ahmad Al Hameli, Secretary-General of Abu Dhabi Executive Council, highlighted the crucial role played by the committee to implement the economic plan for recovery and growth. He stated that the committee also aims to stabilize the performance of activities across various economic sectors and implement initiatives that cater to the needs of the market and fulfill the goals of the business community at both federal and local levels with the aim of improving its economic performance.

In this regard, the committee launched the first-of-its-kind ‘go safe’ certification program in the region that has achieved positive results, reflecting the performance of the tourism sector in the Emirate of Abu Dhabi. It also affirmed the preparedness and readiness of Abu Dhabi to welcome hotel guests in a healthy environment after it received the highest standards of prevention and hygiene.

"According to the statistics of the Department of Culture and Tourism in Abu Dhabi, the capital recorded the highest rates of hotel occupancy during the third quarter of 2020 and the third-highest revenue per hotel room in the region. Hotel revenues increased by 46 percent during Q3 2020 compared to Q2, supported by a 95 percent growth in the total number of guests," Dr. Al Hameli added.

He explained that more than 8,000 establishments working in the tourism, entertainment, and restaurant sectors have received benefits from the initiative, helping them recover 20 percent of the rental value in Abu Dhabi. The authorities have recently expanded the initiative to dental clinics, nurseries, salons and beauty centers. In addition, Abu Dhabi has also provided a number of support packages to accelerate recovery across various sectors, such as abolishing various fees for the tourism and entertainment sectors in 2020.

Federal Customs Authority Director-General Ahmed bin Lahej Al Falasi stated that the Committee's economic recovery plan reflects the commitment of the UAE's wise leadership to attain global leadership in recovering from the pandemic crisis and addressing its economic impact. It also aims to safely move towards future goals and objectives in line with the UAE Vision 2021 and the UAE Centennial 2071.

Al Falasi reiterated the successful role played by the customs sector to implement flexible package initiatives aimed at facilitating trade, encouraging intra-trade exchanges of the UAE with other countries, as well as supporting the UAE’s export industry. Al Falasi also explained that the customs sector has implemented an integrated system that helps in simplifying procedures and reducing customs clearance times. It uses smart and advanced technologies for inspecting trucks and shipments, reducing and standardizing customs service fees, facilitating work procedures at customs ports, providing modern services, and eliminating various burdens and restrictions on the movement of trade.

It is also important to note the Cabinet led by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved the launch of the economic recovery initiatives on August 3, 2020, which included the establishment of a committee to coordinate and follow up on the implementation of the economic plan for recovery. The committee also aims to review the outputs of the plan with the goal of increasing the growth rate across various sectors, creating a stimulating environment for doing business, and providing new opportunities with the support of emerging sectors and employing technology.

The key goals of the recovery plan are to attract and encourage investment across new sectors and boost sustainability and resilience of the national economy such that it is able to serve the future visions of the country.

During the second meeting of the committee, the participants discussed the implementation of the initiatives made during the first meeting as well as assessed the progress of the programs and initiatives with the aim of supporting the national economy and boosting the recovery of all sectors within the framework of the flexible package and the general plan.

WAM