UAE Plots New Stimulus Measures to Bolster Virus-Hit Economy

(Bloomberg) -- The United Arab Emirates will deliver a three-stage “flexible package” of measures to bolster the economy, including steps to support the labor market and encourage investment, state-run WAM reported on Wednesday.

Economy Minister Abdullah bin Touq Al-Marri said the proposals would provide “studied” stimulus packages. The UAE's central bank had provided more than 256 billion dirhams ($70 billion) of stimulus by March to aid businesses amid the coronavirus pandemic. The minister didn't provide further details.

Business conditions in the UAE saw a second straight monthly improvement, according to Purchasing Managers' Index surveys compiled by IHS Markit published on Wednesday. But that hasn't yet translated into job gains.

Employment continued to fall in the UAE, as well as Saudi Arabia and Egypt, despite a stronger pickup in non-oil private sector activity in July, according IHS Markit.

Small- and medium-sized enterprises will get support in the first stage of the plan, including through efforts to promote tourism, WAM reported. The following two stages will focus on sustainable long-term economic growth.

The UAE expects its non-oil economy to contract 4.1% this year due to the pandemic, the central bank said in June.

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