Introduction:
Where each company or institution deals with the market according to the available data because even in the presence of crises each company or institution must have the ways or means to deal with the market where as mentioned earlier that companies, institutions and investors must find away to control the market so each company or institution must develop a plan to deal with the market according to the way we control it, and not to let the market control us. So, we as a group of quarter companies for auditing always have economic plans and solutions for investors which are changeable according to the economic conditions where we always find economic and marketing solutions for companies to face crises
When we highlight the economic situation in the UAE, we see that the economic plan of the UAE is changing in accordance to the change of events and economic conditions. The economic plan before the events of corona virus certainly was changed by the events. So, the economic situation will be explained before the events of corona virus and how it will be like after the end of corona virus.
First: The economic plan of the UAE before the events of the corona virus as follows :
The previous period from 2016 to 2019 witnessed volatility and economic stagnation in general where the UAE had economic plans to support the market permanently, where it had a comprehensive economic program in 2020 which would lead to a significant increase in growth and at all levels, new incentives for investors which were supposed to give a strong boost to the economy in the UAE, The UAE has developed urgent solutions to continue its growth and prosperity by providing the rightful environment for investment, where the UAE has issued a set of incentives and facilities that were supposed to be implemented by the beginning of 2020, which were the following:
1-Expo 2020 the big event that was expected to take place this year:-
- Expo 2020 is considered the largest third global event in terms of economic impact after the Olympic Games and the FIFA World Cup.
- Expo 2020 was expected to generate 20billion Dollars as revenues value .
- The number of volunteers for Expo 2020 project reached 30 thousand volunteers.
- Expo 2020 will be held on an area of 4.38 square kilometers and will be attended by more than 192 countries worldwide.
- Expo 2020 was expected to create around 49,700 jobs from 2020 to 2031.
- The number of visitors expected to increase by at least 25 million and up to 100 million visitors.
- Including the completion of the Dubai Metro Red Line extension from Nakheel Harbour and Tower Station to the Expo 2020 site.
2-The UAE Federal Budget for 2020 was approved at AED 61.35 billion, with an increase of 2% from AED 60.30 billion to AED 61.35 billion, it was the first time to reach this limit.
- the budget for 2020 was planned to be distributed as follows:
* 31.13% is aimed at the social development of UAE residents and citizens.
* 14% targeted to infrastructure and economic resources.
* 6.49% targeted to social benefits.
* 32.61% directed to government business.
* 3.74% targeted to financial investments
* 12.02% directed to other federal expenses.
4-The 2020 budget is 300 times more than that of 1971 and without deficit for the third year in a row.
5-A new financing program for 100% Emirati-owned companies that are managed by Emirati members of the national program for small and medium enterprises has been set up to provide a preferential interest rate of 1% less than the average interest rate for the rest of the other companies, as well as reducing the commission of the loan guarantee program, with financing starting from AED 300,000 up to 30 million.
5-According to Moody’s, Dubai’s GDP growth was expected to rise to an average of 2.5 percent per year in 2019-2022, supported by increased economic activity associated with Expo 2020 and traditional growth drivers such as trade and transport.
6-The UAE was expected to host the International Space Conference for the first time in an Arab country since it was launched in 1950, where the conference is expected to attract more than 3,500 participants this year, while in 2020 it is expected to reach more than 5,000 participants.
7-The UAE has an agenda of the UAE Vision 2021 which is to develop a competitive knowledge economy based on innovation and the National Agenda aims to make the UAE the economic, tourism and commercial capital of more than 2 billion people.
8-According to fam properties, in addition to the real estate that has not yet been completed, it was planned to deliver 59,800 properties in Dubai this year, but only about 33,800 of them are in the final completion stage, all we want to make clear is that all the plans that were developed before the events of the corona virus will be retrieved and applied after the end of the current crisis where the UAE will strive to save all necessary requirements to achieve these goals.
We’re quarter audit group. we had our program in 2020.:
We are the quarter audit group of companies, we have an economic plan for 2020, where we have developed an effective marketing program for 2020 that helps to advertise and market companies and their services at the widest scale through:
– Providing marketing plans in all areas of economy and investment because there is no successful marketing without planning.
– Collecting the necessary financial information related to the marketing plan provided.
– Assisting clients in the development of advertising and announcement through (public relations-social media-and various modern methods).
– Providing consultancy and investment proposals to the client to help him in investing fully because they are the key to any successful business.
– Supporting clients from the beginning of the investment period until achieving the desired results, by managing the project and bringing the necessary labor and clearing the government papers.
– Creating new methods in marketing which are to exchange benefits between investment and economic sectors without competition.
Quarter accounting comprehensive and rich progam has a lot of services that will be offered to our customers in the future in the financial, economic and marketing fields.
As a quarter audit company, we have an opinion on the events of the corona virus that is currently circulating in all countries of the world
Where human resources must have the primary interests of capitalism and capital owners have to maintain them.
Where human resources are the consumer and purchasing power of society and as it is also the workforce in the market which must be maintained as much as possible and to be provide with full support because in the case of abandonment of human resources. This will lead to a decrease in purchasing power and therefore a decrease in the level of consumption
A simplified example of the importance of manpower for the market. Where in the case of a simple worker in any enterprise in the case of receiving the salary resulting from his work is used in the purchase of consumer products for his living requirements in the society but under the current conditions he become dispensed and the worker became without salary, the worker has no ability to buy his needs thus under the current conditions, the purchase power will be declined gradually, so the HR as a basic driver for economy and the marker must be considered.
Second: the economic situation after the completion of the corona events:
In parallel with the spread of the renewed coronavirus COVID-19, which surprised everyone with its rapid spread, all economic and social matters and all the data changed in the UAE…
This period is considered a temporary phase after which a strong start at the level of the economy and exchanges between countries and this after the high demand for goods and services at the local level, which would affect the same direction in foreign trade between countries for any global economic recovery, including the UAE, which is considered to be proactive in many areas, giving it an outstanding opportunity to apply its economic program after passing this stage.
All countries that do not have a strong economy may be negatively affected by this crisis, so countries that have a strong economy and an economic plan are able to get through this crisis, among those countries that are able to get through this crisis is the UAE, which has economic solutions and monetary liquidity that make it manage crises easily and quickly :
1 – Retain the UAE preserves strong finances and a strong banking sector helps to provide an investment environment safe enough for the government to continue to provide funding for all its projects and to meet a financial commitment and expenditure in their balance sheets without financial tripping. The IMF expects the UAE’s total official reserved funds to grow to 118.4 billion Dollar in 2020.
2-Dubai is advancing to the eighth ranking among the best global financial centers.
3-the latest central bank statistics showed that the total assets of the Central Bank of the United Arab Emirates increased by 10.3% or 457 billion AED by the end of February 2020 compared to 414.4 billion AED in the same month last year.
4-According to the ratings of the sovereign funds Corporation (SWFI), which specializes in the study of government investments, and statistics of the largest sovereign funds in the world, Abu Dhabi Investment Authority is one of the largest sovereign funds in the Middle East region and the fifth largest fund in the world with an estimated US 7 792 billion.
5 -Under the UAE is ranked as the sixth globally in terms of number of millionaires, who live in the Emirates 53800 millionaire, of which 778 have more than 30 million $.
6.IFC expects total public Foreign Assets in the UAE to rise to 908 billion Dolaar in 2020 and corporate issuance to refinance existing loans and bonds due in 2020 and 2021 will continue to be significant. IFC estimates loans due to government-linked entities in Dubai in 2021 at 23 billion Dollar and to restructure them again.
7-The sources of the UAE’s GDP consist of 30% of the extraction and export of crude oil and natural gas, 60% from the secondary sector, 1% from agriculture and Fisheries and 9% from the services sector.
8-About 70% of the UAE’s daily oil production can be shipped via the pipeline to Fujairah, and to avoid possible bottleneck in the Strait of Hormuz, the pipeline can transport 1.8 million barrels of oil per day to storage facilities on the Gulf of Oman.
9-Tara Smith, managing director of JP Morgan Middle East and North Africa, predicted the UAE’s GDP will grow by 3% in 2020, noting that the country’s economy is on the road to recovery and is likely to receive further momentum with the support of Expo Dubai and recent government incentives.
10-The level of GDP per capita in the UAE is ranked seventh at the world level.
11-In April 2018, the UAE government launched the UAE blockchain Strategy 2021, the strategy aims to leverage blockchain technology to turn 50% of government transactions into a blockchain platform by 2021, by adopting this technology, the UAE government expects to save* AED 11 billion in transactions and documents processed annually.
* AED 398 million of publications per year.
* 77 million working hours per year.
12-The employment rate in the UAE is 78%.
13-Strategic position: The UAE strategic location between Asia, Europe and Africa where thousands of Chinese companies use Dubai as a hub for trade in Africa, and Indian traders use the emirate to reach the world. Latin Americans view the country as a launching pad for South Asia, and Westerners use Dubai as a hub for the Middle East.
14-Free zones: the UAE has many multidisciplinary free zones that offer many economic incentives e.g. exemption from corporate taxes, import / export duties and full foreign ownership at 100% of profits, there are about 45 free zones in the UAE. According to a report published by Gulf News, free zones contributed 33 percent of the UAE’s non-oil trade in 2014.
15.The United Arab Emirates is gaining more from the services sector than agriculture and industry.
16-The economy of the UAE depends on the industry the following :-
Petroleum and petrochemicals, fishing, aluminum and cement fertilizers, commercial ship repair, building and construction materials, handicrafts and textiles, real estate and tourism.
17-It is expected that the merger of Dubai Islamic Bank and Noor Bank will emerge. The potential acquisition of Noor Bank will create an Islamic banking entity with total assets of AED 278 billion, equivalent to USD 76 billion. during the year following the acquisition, Dubai Islamic Bank will be one of the largest Islamic banks in the world. its issued capital will be increased from 6.59 billion AED to 7.24 billion AED by increasing the bank & apos; s capital through the issuance of 651.16 million new shares in the bank.
18-The merger of Arabtec Holding with Trojan in Abu Dhabi, in terms of the size of the merger deal between the two real estate companies, when the size of Trojan’s investments in Abu Dhabi is revealed after the conclusion of the current negotiations and talks, this merger comes in an attempt to create a huge entity capable of meeting the challenges
19-The Emirates will unveil the Dubai Creek Tower, the largest in the world after Burj Khalifa with an estimated length of 828 meters, to be implemented by Emaar Properties in partnership with Dubai Holding Group.
The Dubai Creek project is expected to span an area of 6 square kilometers.
21-Regardin to the World Bank, the UAE ranked 16th in terms of ease of doing business.
22-The World Economic Forum considers that the UAE is among the first countries in terms of competitiveness as it ranked 25th globally (2019).
23.The government efforts have focused on enforcing smoother laws on real estate, granting extended visas and setting the stage for the launch of simplified secondary mortgages, initiatives that will play an important role in stimulating investment and maintaining the momentum of the tourism recovery even after the end of the world fair. EXPO 2021
24-FDI flows to Dubai in the first half of 2019 reached to 46.6 billion AED.
25-In the 34 years since its inception in 1985, Emirates ‘ combined revenues reached to 884 billion AED with a cumulative growth rate of 18.53%.
How to protect myself from coronavirus infection?
As a personal responsibility of each person, everyone must adhere to and follow the etiquette of coughing, as the methods of prevention of Corona are no different from other diseases and colds, and here are some steps to follow from good manners and behaviors to face of Corona and other diseases, which are recommended by the World Health Organization:
- Wash hands thoroughly, soap is able to eliminate viruses.
- Cover your mouth and nose when sneezing or coughing, and wash hands after to prevent the spread of the virus.
- Avoid touching eyes, nose and mouth if hand contact with the surface likely to be contaminated by the virus, as the virus can be transmitted to the body in this way.
- Ensure the availability of various sterilization tools in the workplace.
- Do not approach people suffering from coughing, sneezing or fever, as they can spread small particles containing the virus into the air, preferably within a distance of one meter.
- Reduce direct communication with those around.
And finally …
We are a group of Quarter audit companies that follow the economic situation all the time and provide the necessary solutions fully from economic consulting and plans as well as how to manage liquidity in a crisis.