UAE set to implement flexible package to support economy

Under the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and with the approval of the UAE Cabinet, the Ministry of Economy is soon to implement a flexible package and general plan to support various economic sectors. The plan seeks to create a more flexible economic environment conducive to provide new opportunities and encourage investments in future sectors in support to the UAE’s strategic visions and directions.

The timeframe of the plan involves three main stages that will lead to growth in vital economic sectors, in line with the priority to support the economy, and set the country’s path towards sustainable development.

During its last meeting, the UAE Cabinet had approved various aspects of the flexible package and general plan to support various economic sectors, along with the formation of a Committee headed by Abdulla Bin Touq Al Marri, UAE Minister of Economy, with the membership of all relevant federal and local authorities. The Committee is following up the implementation of the plan and is submitting its recommendations to the Cabinet.

The plan outlines 33 major initiatives that focus on the transformation of eight aspects, namely, development of sectors, support for labour market, stimulation of trade, enhanced flexibility of financing activities, increased productivity, support for digital transformation, acceleration of green economy growth, and enhanced food security. Abdulla Bin Touq Al Marri, UAE Minister of Economy, said that the economic plan offers specific initiatives that address the requirements of the economic situation and serve the needs of different sectors during the next stage by offering thoughtful stimulus packages that support and enhance economic activity, and achieve a sustainable impact.

He explained: “The economic plan’s scope focuses on developing policies and initiatives, thereby aiding the transition of the economy to a more flexible and sustainable model, especially in the final stages of the plan’s implementation. During this stage, intensified digital transformation and investments in future industries and advanced technological applications in the business sector in the country will be encouraged.

The plan also involves monitoring of global developments in the fields of health and economy; the vitality of the UAE economy and its openness to global markets; changes in public behaviour and their impact on business activities; as well as forecasts and studies on the development of world economies in light of the reports of international organizations and forecasts on oil prices.

It also aligns with the country’s current strategic priorities, including Vision 2021, Centennial 2071, and other major national policies such as the Science, Technology and Innovation Policy, UAE Policy for Advanced Industries, the national food security strategy, Fourth Industrial Revolution Strategy, Artificial Intelligence, Advanced Skills, Employment, and others.

A country-specific analytical model was designed to combine social and economic indicators to achieve comprehensive development.

Dr Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs, noted that the country adopts a proactive vision for development and follows a transformative economic model which is more flexible in dealing with various challenges and enhances its ability to explore opportunities, develop strengths, and establish a stronger foundation for the future of the economy.

Al Falasi added that the current phase will see the development of several economic policies that serve the priority targets to stimulate the economy and drive growth. It will comprise entrepreneurship, promotion of SMEs, and attracting talents as the key pillars that will widen the scope and possibilities for future growth, while further boosting the flexibility of the economic model and its sustainability.

Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, highlighted that the plan represents the launch of a new economic era towards a sustainable development path. He stated that the set of integrated initiatives included in the plan addresses various challenges that were reported by the business sector and takes advantage as well the new opportunities and trends brought about by the current changes.” He added: “ The economic plan also gives strong emphasis on initiatives of foreign trade activities. It is set to launch a development phase which will further strengthen the UAE’s position as a preferred destination for trade and investment.”

The plan encompasses coordination of incentive policies at the federal and local levels by taking advantage of the strengths and aligning them with national strategies and priorities, while also defining and distributing responsibilities for entities that have been tasked with conducting joint follow-ups.

Overall framework for change In order to establish economic policies that would help the country’s shift towards a more flexible economic model, the plan identifies eight main axes of change. These include the increase of production in priority sectors, and employment support, reviving trade, and enhancing the flexibility of financing activities through sustainable incentive measures, increasing productivity by exploiting opportunities for investment in knowledge and applications of automation, promoting digital transformation, accelerating the growth of the green economy by accelerating the growth of sustainable energy projects, and enhancing food security by accelerating growth of food security projects.

Agencies