The United Arab Emirates was ranked the most resilient economy in the region in 2021, outperforming some of the world’s largest economies such as Italy, South Korea, Israel, Malaysia, Saudi Arabia, China and India, according to a new study.
The UAE ranked 32 globally on the list of 130 countries in the FM 2021 Global Resilience Index, ahead of Qatar (34th), Israel (37th), Bahrain (49th), Saudi Arabia (55th), Turkey (60th) and India. (62nd), Oman (69th), China (77th) and Kuwait (86th).
The index measures three categories: economy, 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, innovative approach to new challenges, and success against Covid-19.
The global rating agency Moody’s Investors Service also said that the resilience of the UAE economy to shocks is higher than average compared to other sovereign countries, thanks to a relatively large nominal GDP of $ 354 billion (1.3 trillion dirhams).
Moody’s said that the UAE’s economic resilience in the face of shocks demonstrated its effective political measures. He said that the stable outlook for the Emirate of Abu Dhabi also reflects that its financial strength will remain resilient in the face of risks related to the epidemic, especially given the major global vaccination efforts being made by the UAE capital.
In addition, Moody’s said, Abu Dhabi showed financial resilience during the previous period of low oil prices.
Anish Mehta, former head of the Institute of Chartered Accountants of India – Dubai branch, said the UAE has repeatedly demonstrated its resilience, thanks to strong leadership and innovative, investor-friendly policies that build confidence in the local economy.
The way the UAE has dealt with the challenges related to Covid-19 shows the skill of the UAE rulers and their management. Due to appropriate and timely measures, including vaccination, the UAE economy is on a path of growth. All major sectors in the UAE such as real estate, hospitality and FMCG are doing well, Mehta said, adding that loosening trade rules will accelerate the recovery and improve their resilience.
A recent survey by PwC revealed that organizations in the Middle East are showing strong resilience and have had less negative impact due to the pandemic, with 41% replying that its impact is positive, compared to only 20% globally. Around 73% of Middle Eastern respondents believe they are in a good position to assess long-term business threats.
Globally, the FM 2021 Global Resilience Index ranked 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 resistant.
Ukraine is the largest increase in the index, rising from 84 to 63, while the largest decrease is Oman, from 57 to 69 due to a sharp decline in economic productivity and oil intensity.
“Over the years, thinness, speed and short-term profits have often been the main concerns of global companies. But the historical events of 2020 have reminded the world that these traits are subject to the ability to resist, recover or act. Through lockdowns, demonstrations and climate disruptions,” Eric said Jones, Vice President of FM Global.