COVID-19 Update
The UAE has been a leader in responding to COVID-19, with the Government taking exceptional measures to strengthen the resilience of the economy and business sector, introduce health protection measures to protect citizens, residents and visitors, and support international efforts to combat the global pandemic.
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai
We have adopted new systems in the banking, economic, and public sectors and provided healthy infrastructure to deal with the worst possibilities. We have a national team that is working around the clock to safeguard the health of our society and protect our economy and education system. We will pass this global crisis with confidence.
Supporting the Economy and SMEs
The Federal Government, emirate-level governments, and the Central Bank have all launched efforts to support the national economy, protect consumers and companies, and reduce the economic burden caused by COVID-19.
Since late April 2020, the Government has worked to gradually reopen the economy. This has worked in tandem with efforts to manage the health impact of COVID-19, including one of the world’s fastest COVID-19 vaccination efforts.
Fiscal support measures include, as of 30 June 2021:
- Reducing governments fees and charges for the private sector
- Refunding bank and financial guarantees to some establishments
- Accelerating existing infrastructure projects
- Reducing or exempting some emirate-level governments fees
- Provision of water and electricity subsidies
- Credit guarantees and liquidity support for SMEs
Monetary support measures include, as of 30 June 2021:
- Reducing Central Bank policy interest rate by a combined 125 basis points
- Halving of banks’ required reserve requirements from 14 percent to 7 percent
- Central Bank issuing 0 percent interest rate collateralized loans to banks
The UAE is currently adjusting its strategy to prepare for the post-COVID-19 era, with areas of review encompassing health, education, economic, food security, society and government. The UAE will come out of the pandemic with a more agile and flexible government prepared to tackle future economic and social challenges.