GULF STATES| BUSINESS TIMES
UAE economy to rebound in 2021, grow 3.3pc: IMF
The UAE and the neighboring Gulf economies will rebound strongly next year as the Covid-19 coronavirus situation is expected to normalise, according to International Monetary Fund’s World Economic Outlook released on Tuesday.
The UAE economy will see a 3.3 percent growth in 2021, the IMF said, while predicting a 3.5 percent contraction this year. The decline in the UAE and regional countries is in line with contraction of the global economy and other major economies.
In the region, Iran will be the worst hit country, contracting 6.0 percent in 2020 following 7.6 percent in 2019. Saudi Arabia, the region’s largest economy, will shrink 3.9 percent, Qatar by 4.3 percent, Kuwait by 1.1 percent and Oman by 2.8 percent. But all the economies will rebound strongly as world economy will pick pace, resulting in higher oil prices and increase in growth of non-oil sectors.
Nirav Shah, director of Fame Advisory DMCC, said as dust settles down next year, public and private sectors will resume full throttle, therefore, economies will definitely take off.
“Even if we don’t get where we were prior to Covid-19, but there will be a better change. Plus, Expo 2020 will give a further boost to the economy.”
Even in these tumultuous times, he said, certain sectors such as healthcare pharmaceutical, medical equipment sector and food sectors are still in great demand.
“These sectors will continue to lead even in coming years. I do expect e-commerce, delivery services, telecom and MICE sectors will gain momentum post Covid-19. Other traditional sectors such as logistics, travel, tourism and hospitality will rebound as fears about Covid-19 recede,” he said.
“We saw a lot of cancellation of MICE events since March with many of them shifted to November. So entire MICE population that used to come to the UAE, will be visiting the UAE next year. That will help in the reversal of fortune for the economy,” he added.
IMF sees oil prices will remain below $45 a barrel through 2023, some 25 percent lower than the 2019 average price, reflecting persistently weak demand.
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UAE remote working paves way to regulatory changes
Reassessing the existing telecom infrastructure needs will prove to be vital for businesses in the UAE, according to a recent report released by Dubai Future Foundation (DFF).
Massive increase in online traffic due to remote working policies and online streaming services may lead to future regulatory changes and liberalisation of VPN and VoIP in the UAE and wider Mena region.
Currently, the use of Virtual Private Network (VPN) is illegal in all the countries across Middle East and North Africa (Mena) region while VoIP is permitted in some regional countries.
In order to improve connectivity and communication for professional usage in the UAE, the telecom regulator removed blocks on a series of VoIP applications last month to ensure proper distance learning for students in the country.
Expecting massive surge in online traffic, UAE telecom service provider have taken steps to avoid network bottlenecks and reduction in speed. Such efforts proved successful.
According to the Speedtest Global Index, released by internet performance analysis firm Ookla, in March the UAE had the quickest mobile internet speed in the world, with downloads speeds of 83.52 Mbps, upload speeds of 21.79 Mbps and latency of 27 milliseconds.
In terms of fixed broadband, the country rose three places from its February ranking to 26th globally, with downloads speeds of 100.95 Mbps, upload speeds of 51.17 Mbps and latency of 11 milliseconds, Oxford Business Group said on Wednesday.
As result of these VPN restriction in the region, the Dubai Future Foundation report – “Life After Covid-19: Telecommunications – warned that the companies may not be able to use VPNs for international business communication which will hurt them financially.
“Given that VPNs are not permitted in all circumstances in all Mena countries, companies may be unable to use such networks to continue international business communication online. While employees have to work from home and international travel is not possible, this may put significant pressure on the cost and efficiency of business communication further exacerbating the challenges facing businesses that are struggling due to a drop in demand,” said the report.
Generally, companies that use VPNs that are dependent on traffic over the public internet may see transport problems as connections are made from around the world translating into slowdowns and reduced quality of service.
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UAE’s first community app ‘Mama Me’ introduced for mums and mums to be
Dentist turned tech entrepreneur Sumayya Sarwar – who gave birth to her first born in backseat of Uber – is founder of UAE’s first community app ‘Mama ME’ for mums and mums to be, available free on the app store for women across the emirates.
The app connects UAE women with like-minded parents, offers a safe space to connect, clusters users by geographical location, age of children.
Sumayya, 32, is a self-taught tech entrepreneur juggling her duties as a dentist and young Mother while turning her efforts to app development.
Sarwar said: “Managing my day job as a dentist and role as a first time mother spurred me to create a platform where like-minded and expectant mothers in the same boat as me could connect, share their experiences and form a community.We are so fortunate in the UAE, which is one of the world’s most child-friendly places to live, but I felt as though my friends were leading a very different life to me as a new mum with a young baby. This spurred me to do some market research, brainstorm ideas for a community app and create a focus group with whom I could test out my ideas.”
Understanding the challenges a new mother faces like sleep deprivation coupled with feelings of overwhelming isolation, the founder of Mama ME app decided to create a safe and secure community app for mums and pregnant women so they can connect, talk and be there for one another. As UAE residents are being urged to #StayHome, Sumayya launched the app earlier than expected, in order to open up the community as mothers or expectant mothers were indoors while self-isolating during the Coronavirus outbreak.
Mama ME app features include a robust verification process of each user, in order to keep the community secure and to allow women to share information safely. UAE community Mum’s can connect based on their neighbourhood and chat with other users about a range of topics such as breastfeeding, post-natal depression, disturbed sleep and teething. The Mama ME team are working on rolling out more features to make this a useful platform for Mums and provide them with the reassuring presence of a community through their phone.
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UAE feeling more prepared to help prevent the spread of covid-19
A new survey from Snap Inc. reveals how people in the UAE are staying informed about the COVID-19 outbreak, and what they are doing to stay in touch with family and friends during this time.
On the whole, more than four in five (87 percent) Snapchatters in the UAE feel better prepared to help prevent the spread of COVID-19 than they did a month ago. At the same time, people do appear mindful of avoiding misinformation about Covid-19.
The Snapchat user survey shows that 54 percent of UAE public are turning to official government sources for information on the outbreak, more so than TV news sources (26 percent) or even family and friends (25percent).
In addition to keeping well informed, many Snapchatters appear to be using the time spent at home for personal growth. More than half (61 percent) say they are looking after themselves through self-care activities, while 43 percent are taking online classes, 42 percent are working on physical fitness, and 41 percent are looking to learn a new skill.
Moreover, people are finding ways to maintain their mental wellbeing even with the disruption of Covid-19. When asked what is helping them the most to keep calm during this time, more than half (57 percent) cite staying connected with family and friends, while 47 percent say playing video games and 23 percent say meditating or working out. The importance of relationships is so valued that, when asked about any positive outcomes of the current situation, the most common response is spending quality time with family.
That sentiment also carries over to Snapchat itself. Nearly half (41 percent) of local Snapchatters are now using the app more than before to stay in touch with family and friends, compared to 36 percent making more video calls and 32 percent making more phone calls.
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UAE sets benchmark in use of drone technology against covid-19
The UAE’s relentless drive to become one of the most technologically advanced countries in the world has been a major contributor in helping it combat the spread of Covid-19, experts say.
The country’s willingness to embrace new technologies, especially drones, has been a major factor in controlling the spread of the virus and keeping residents safe, technology manufacturers noted.
“The UAE is a technology pioneer,” Rashid Al Ghurair, techpreneur and founder of CAFU, told to source. “From smart government services, 3D printing, or drone technology, we find ourselves at the epicenter of smart city living. As the Covid-19 crisis unfolds, technology continues to become an even more essential part of our daily lives, helping us to reduce daily interactions.”
Drone technology in particular, he said, holds “huge potential” for managing crisis. “It is in times like these, we benefit the most from the vision of the UAE government. Today drones are used to not only monitor the movement of its residents for their own safety but are used to disinfect public spaces.”
Monica Suk, senior communication manager at DJI, said that the company has been working with a number of organisations to not only implement methods proven to be effective at addressing health and safety, but also to test new methods which may have potential.
“In the UAE, we’ve seen drones used by local government entities for a range of use cases, including sterilisation techniques in Dubai, or broadcasting and monitoring measures in Sharjah. These practices are proving essential in ensuring public safety is maintained as far as possible,” she said. “We commend the collective efforts of the UAE’s government bodies and residents, who have truly united in their efforts to tackle Covid-19. Going forward, harnessing the power of technologies such as drones will continue to be crucial in ensuring that communication, visibility, and safety are maintained.”
Asked if investments in drone technology will accelerate to meet the need of the hour, Suk said: “It’s fair to say that the UAE is a very forward-thinking nation, which embraces the latest trends and innovations with open arms. From our own experience as an organisation, we know first-hand how keen the UAE is to work with drones and leverage their potential. Last year, we announced a Solution Development Partnership with Dubai Police to test and deploy DJI drones as tools in aiding public safety professionals. With safety and healthcare key components of the national agenda, we may well see the exploration of further use cases for drones across these verticals in the coming month and years.”
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DUBAI authorities collaborate to ensure faster delivery of goods, essential commodities
The Department of Economic Development, Dubai, announced a strategic collaboration between Dubai Taxi Corporation (DTC) at the Roads and Transport Authority (RTA); Aramex; and Carrefour, operated by Majid Al Futtaim in the UAE, to support essential delivery of supplies to the community amid the coronavirus situation.
The collaboration will see DTC and Aramex working together to deliver various basic commodities to consumers across Dubai who shop electronically using the Carrefour website (carrefouruae.com) or via its smart mobile app, a statement issued on Thursday said.
The initiative comes in response to the high volume of demand for food and consumables ordered through online stores.
As part of the agreement, Aramex has provided a dedicated fleet of its courier vehicles, while DTC has committed a number of taxis to assist in ensuring efficient delivery of items ordered by Carrefour shoppers online.
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Coronavirus: GCC markets mixed as OPEC+ agree on output cuts
Saudi Arabian stocks fell in early trade on Monday, extending losses from the previous session, as record output cuts by the kingdom and other oil-producing countries was dwarfed by April demand slump.
The Organization of the Petroleum Exporting Countries and allies led by Russia agreed to reduce output by 9.7 million barrels per day in May and June – equal to nearly 10 percent of global supply – but the reduction still dwarfed by the near 30 million barrels per day drop in demand in April already anticipated by forecasters like Goldman Sachs.
On Sunday, Goldman Sachs said oil prices would keep falling in the coming weeks, reasoning that a “historic yet insufficient” deal by big oil producers to cut output is unlikely to offset a coronavirus-led demand rout.
Saudi Arabia’s benchmark index slipped 0.3 percent, with Al Rajhi Bank shedding 0.7 percent, while Saudi Telecom was down 1.3 percent. The latter extended its memorandum of understanding for 90 days with Vodafone to acquire the group’s shareholding in Vodafone Egypt.
Elsewhere, oil giant Saudi Aramco eased 0.2 percent. But, the stock rose ahead of the deal on the optimism and was priced in.
In Dubai, the index gained 0.6 percent, helped by a 1.5 percent rise in Dubai Islamic Bank and a 3.3 percent increase in Emirates Integrated Telecommunications.
The UAE central bank has urged commercial lenders to use the $70 billion-worth of capital and liquidity measures launched by the regulator to support the economy during the coronavirus outbreak.
Abu Dhabi’s index, however, retreated 0.7 percent, as the country’s largest lender First Abu Dhabi Bank declined 3.5 percent.