Market and Economic Crisis Management Strategy
Every company or institution operates in the market according to the available data, information, and prevailing conditions. Even during periods of crisis, every company or institution should have the appropriate tools, mechanisms, and strategies to respond to changes in the market.
As previously mentioned, companies, institutions, and investors are among the key participants influencing market activity. Therefore, every company or institution should develop a clear plan for dealing with market conditions based on current circumstances and available information.
Companies should also continuously adjust their strategies whenever the surrounding economic, political, investment, or market conditions change. Since market activity is influenced by the interaction between investors, businesses, and external events, new developments require companies to reassess and adapt their plans accordingly.
The objective is therefore to ensure that companies are capable of managing their activities and adapting to market conditions rather than allowing market fluctuations to determine their entire course of action.
At Quarter Group of Accounting and Auditing Companies, we continuously develop economic and marketing plans and solutions for companies and investors. These solutions are adapted according to changing economic conditions and market requirements, with the aim of helping businesses respond effectively to crises and economic changes.
First: The UAE Economic Plan Before the COVID-19 Pandemic
The period from 2016 to 2019 witnessed economic volatility and periods of stagnation at the global level. During the same period, the UAE continued to develop economic plans and initiatives aimed at supporting the market and promoting economic growth.
The year 2020 was expected to witness the implementation of several economic programs and initiatives designed to support growth across different sectors, together with new incentives for investors and measures intended to strengthen economic activity and provide a favorable investment environment.
The UAE had also developed a number of initiatives and measures designed to maintain economic growth, attract investment, and strengthen the business environment.
1. Dubai Expo
Expo 2020 Dubai was originally scheduled to take place in 2020 but was subsequently postponed to 2021 because of the COVID-19 pandemic.
The event was expected to be one of the major international events with a significant economic impact on the UAE. Among the expectations associated with the event were:
- Participation from more than 190 countries.
- A site covering approximately 4.38 square kilometers.
- Millions of expected visitors during the event.
- The creation of employment opportunities directly and indirectly associated with the event.
- The completion of major infrastructure projects connected to the Expo site, including the extension of Dubai Metro’s Red Line.
- Financing programs and incentives designed to support Emirati-owned small and medium-sized enterprises.
Economic growth in Dubai was also expected to benefit from Expo-related activity, in addition to traditional growth sectors such as trade, transportation, tourism, and real estate.
2. UAE Vision 2021
The UAE was operating within the framework of UAE Vision 2021, which included objectives related to developing a competitive knowledge-based economy driven by innovation and strengthening the country’s position as an economic, tourism, and commercial center.
The National Agenda aimed to enhance the competitiveness of the UAE economy, diversify sources of growth and investment, develop the business environment, and encourage innovation.
3. The Real Estate Sector
During this period, Dubai’s real estate sector included a large number of projects under construction and development.
A significant number of properties were expected to be delivered, although completion rates varied among different projects.
Real estate and investment projects were expected to continue supporting economic activity alongside government infrastructure and development projects.
Second: Quarter Group’s Program
Quarter Group of Accounting and Auditing Companies had developed an economic and marketing program for 2021 designed to support companies and investors in developing their businesses and responding to changing economic conditions.
The program included several key areas:
1. Developing Marketing Plans
Providing marketing plans across different economic and investment sectors, based on the principle that effective marketing requires proper planning and a clear understanding of the market.
2. Collecting Financial Information
Collecting and analyzing the financial information required for the proposed marketing and investment plans in order to support more structured decision-making.
3. Advertising and Public Relations
Assisting clients in developing their advertising and promotional activities through public relations, social media, and modern communication and marketing methods.
4. Investment Consultancy
Providing investment consultations and proposals that help clients assess available opportunities and make decisions in accordance with their objectives and market conditions.
5. Supporting Investors and Companies
Supporting clients from the beginning of the investment process through the achievement of their targeted objectives, including project management, assistance in securing the required workforce, and completing relevant government procedures and documentation.
6. Developing New Marketing Methods
Creating new marketing approaches based on cooperation and the exchange of benefits between different economic and investment sectors, allowing companies to benefit from available opportunities without relying exclusively on traditional competition.
Third: The Importance of Human Resources to the Economy and the Market
At Quarter Group, we place significant importance on human resources and believe that maintaining employment and purchasing power within society is an important factor in sustaining economic activity.
Workers are not only an essential factor of production; they also represent a major component of consumer and purchasing power within society.
When an employee receives a salary in return for his or her work, part of that income is used to purchase goods and services required for daily life. In this way, income moves from businesses to employees and then returns to the market through spending and consumption.
However, when a worker loses employment or income, his or her ability to spend and consume decreases. This can reduce demand for goods and services and consequently affect sales, production, and investment.
For this reason, maintaining and supporting human resources during periods of crisis is important because they represent an essential component of the economic cycle.
Fourth: Economic Expectations After the Crisis
The crisis period was expected to be temporary, followed by a gradual recovery in economic activity and international trade as demand for goods and services recovered at both the local and international levels.
An improvement in domestic demand was expected to support foreign trade and contribute to a gradual recovery in global economic activity.
The UAE, supported by its economic and commercial position and the infrastructure it had developed over previous years, continued to work on economic programs and initiatives designed to attract investment and diversify the economy.
The ability of countries to respond to crises depends on several factors, including economic strength, fiscal and monetary policies, the level of financial reserves, the strength of the banking sector, and the ability of governments and companies to adapt to changing conditions.
Fifth: Financial Reserves and the Banking Sector
The UAE maintained substantial financial reserves and a strong banking sector, which supported an economic and investment environment capable of maintaining economic activity, financing projects, and meeting financial obligations.
The presence of large sovereign investment institutions and funds is also an important component of the UAE’s economic structure. Among the most prominent of these is the Abu Dhabi Investment Authority, one of the world’s major sovereign wealth funds.
Sixth: Economic Diversification in the UAE
The UAE economy is based on a diverse range of sectors, including oil and gas, trade, transportation, services, real estate, tourism, manufacturing, financial services, and other economic activities.
Economic diversification is an important factor in strengthening resilience to economic changes and reducing dependence on a single source of income.
The UAE also has a large number of free zones offering various incentives to investors and contributing to trade, investment, and the attraction of international companies.
Seventh: Digital Transformation and Blockchain Technology
In 2018, the UAE government launched the UAE Blockchain Strategy 2021, aimed at utilizing blockchain technology to enhance government services and support digital transformation.
The strategy aimed to transfer a significant proportion of government transactions to digital platforms based on blockchain technology, contributing to greater efficiency and reducing the time and costs associated with paper-based transactions.
Eighth: Mergers and Acquisitions
During this period, the UAE economy witnessed several merger and acquisition initiatives that reflected the efforts of some companies to strengthen their scale and competitiveness.
One example was the merger between Dubai Islamic Bank and Noor Bank, which resulted in the creation of a major Islamic banking institution.
There were also merger plans and negotiations in other sectors, including real estate, with the objective of creating larger entities capable of responding to market challenges.
Ninth: Infrastructure and Real Estate Projects
A number of major projects were planned in the UAE, including the Dubai Creek Tower and the Dubai Creek development, in addition to numerous infrastructure and real estate projects.
These projects formed part of broader development plans aimed at strengthening infrastructure and supporting different sectors of the economy.
Tenth: Quarter Group’s Role in Managing Economic Crises
At Quarter Group of Accounting and Auditing Companies, we continuously monitor economic developments and provide integrated solutions for companies and investors in accordance with changing economic conditions.
Our services include:
- Economic and financial consulting.
- Developing economic and investment plans.
- Developing marketing strategies.
- Analyzing markets and investment opportunities.
- Assisting companies in liquidity management during crises.
- Providing appropriate solutions for companies facing economic changes.
- Supporting companies in developing their businesses and improving their ability to adapt to market conditions.
Ultimately, effective crisis management depends on the ability to respond quickly to changing conditions, reassess strategies, manage resources and liquidity efficiently, and continue identifying new opportunities that may emerge even during challenging economic circumstances.