According to a new study, the UAE was ranked as the most resilient economy in the region in 2021, higher than some of the world’s largest economies such as Italy, South Korea, Israel, Malaysia, Saudi Arabia, China and India.
The UAE ranks 32 out of 130 countries around the world in the FM 2021 Global Resilience Index, ahead of Qatar (34th), Israel (37th), Bahrain (49th), Saudi Arabia (55th), Turkey (60th) and India. (62.), Oman (69.), China (77.) and Kuwait (86.).
The index measures three categories – profitability, risk quality, and the supply chain.
The strong resilience and confidence in the UAE’s economy during the year of the pandemic reflects its effective government measures, investor-friendly policies, and an innovative approach to new challenges and success against Covid-19.
The international rating agency Moody’s Investors Service also said that the resilience of the UAE economy to shocks is higher than average compared to the other countries that rated it, thanks to a relatively high nominal GDP of $ 354 billion (1.3 trillion dirhams).
Moody’s said that the UAE’s economic resilience in the face of shocks shows that its policies are effective. She said that Abu Dhabi’s stable prospects for the future also reflect that its financial strength will remain resilient given the risks associated with the epidemic, especially given the pioneering global vaccination efforts in the UAE capital.
Moody’s also said that Abu Dhabi had shown financial resilience in the preceding period of low oil prices.
Anish Mehta, former head of the Institute of Chartered Accountants of India – Dubai branch, said the UAE has consistently shown resilience thanks to strong leadership and innovative investor-friendly policies that increase foreign investors’ confidence in the local economy.
The way the UAE has dealt with the challenges related to Covid-19 shows the capacity and management of the Emirates’ rulers. The UAE economy is on a growth path, due to appropriate and timely measures, including vaccinations. All major sectors in the UAE such as real estate, hospitality and FMCG are doing well, Mehta said, adding that loosening the rules for companies would accelerate the recovery and improve their resilience.
A recent PwC survey found that organizations in the Middle East are showing strong resilience and have had fewer negative impacts as a result of the pandemic. 41% said they had a positive impact, compared to only 20% globally, and around 73% of respondents believed they were in a good position to assess long-term business threats in the Middle East survey.
Globally, the FM Global Resilience Index 2021 ranks Denmark as the most resilient economy, followed by Norway, Luxembourg, Germany, Switzerland, Finland, Sweden, Austria, the United States and the United Kingdom. Haiti, Venezuela, Iran, Chad, Ethiopia, Lebanon, Mali, Mozambique, Nicaragua and Nepal were ranked as the least flexible.
Ukraine is the biggest rise in the index, jumping from 84th to 63rd, while Oman was the biggest loser, dropping from 57th to 69th due to the sharp decline in economic productivity and oil intensity.
“Over the years, flexibility, speed and short-term profit have often become central concerns of global companies. But the historical events of 2020 have reminded the world that these traits are determined by the ability to resist, recover or act.” Closures: Eric Jones, Vice President, FM Global