GulfNews Business

UAE: Stimulus packages of Dh395b to support economic recovery

Business|Government|: Abu Dhabi: The total economic stimulus packages and initiatives provided by the federal and local governments since the beginning of the COVID-19 pandemic has reached Dh395 billion to date, thanks to the unlimited support by the wise leadership, Humaid Al Muhairi, official spokesperson of the Ministry of Economy, said. "The Cabinet adopted a general economic recovery plan in August 2020 to support economic sectors and activate business activities under the supervision of the Ministry of Economy,” Al Muhairi, said during the weekly media briefing on Tuesday. Through the three-phase plan, including 33 initiatives, UAE aimed to mitigate the effects of the pandemic on the private sector, ensure business continuity, maintain the competitiveness of the national economy and accelerate the transition towards a more flexible, developed and sustainable model of economic work, he said. It also aims to create new opportunities and encourage investment in future sectors. “We have achieved 80 per cent of the first phase, 25 per cent of the second one, and work is underway to achieve 100 per cent of the plan by the end of this year,” Al Muhairi said. He said that the UAE was ranked first in the Arab world in the COVID Economic Recovery Index Ranking issued by the Horizon Research Group, thanks to the country’s wise leadership. Meanwhile, the National Emergency Crisis and Disaster Management Authority urged all community members to take the COVID-19 vaccine as soon as possible to support the health sector’s efforts for a safe return to normality.

GulfNews Business

Central Bank of UAE Governor seeks continued support of banks to the UAE economy

Banking|: Dubai: The governor of Central Bank of the UAE (CBUAE) Khaled Mohamed Balama, held a meeting with the CEOs of all banks operating in the UAE to discuss the macroeconomic environment. At the meeting, he briefed the CEOs on CBUAE’s assessment of financial stability, and inform about the central bank’s ongoing regulatory and supervisory initiatives. The agenda of the meeting was on role of banks in supporting UAE’s economic recovery by ensuring continued flow of credit to the economy. The CBUAE assesses financial system of the UAE as stable. Liquidity and capital buffers of banks remain adequate, supported by stable deposit volumes and growth in capital market funding. Meeting participants also discussed areas subject to close monitoring by the CBUAE, which included asset quality and credit conditions. Role of banks The CBUAE emphasised the role of banking sector in the continued flow of credit to the private sector, supported by different components of the CBUAE’s Targeted Economic Support Scheme (TESS). The governor called on banks to support the economy and continue lending to credit worth customers in the context of its extension of TESS until June 30, 2022. “Our assessment and recent economic data point to a post-pandemic rebound of the UAE economy. The UAE banking system remains resilient, and our support measures in the form of the CBUAE’s Targeted Economic Support Scheme and other measures will remain in place until the mid-2022,” said Balama. Need for faster credit growth Against the background of gradual economic recovery, continued government support, healthy funding growth and bank lending remains flat, reflecting subdued demand and the conservative risk appetite of banks. Parties in the meeting discussed the pre-requisites and critical enablers for the banking sector to increase their support of the UAE economy, especially during the early stages of recovery. They also also discussed the trends in the real estate market and the CBUAE’s proposed framework for surveillance and supervision of real estate exposures, with a view of addressing risks associated with lending to this sector.