COVID-19 (Coronavirus) has been proven as a pandemic, and it is affecting people all over the globe. Due to potential threats, and prevailing conditions, COVID-19 effects on business in Dubai are negative, and a decrease in the investment and business growth is being observed.
UAE Efforts to Combat COVID-19 effects on business in Dubai
Many employees and organizations, throughout the world, are bracing themselves in modern times. The government of UAE understood the severity of problem very early, and gave proactive respond in the technologically advanced, strategic, and organized way to conduct various activities in the phased manner, while keeping a good eye on the development across the globe, and care instructions by World Health Organization (WHO) due to COVID-19 effects on business in Dubai.
Coronavirus hit the world at the start of 2020, and some countries started grappling to comprehend the condition, while some were taking denial approaches. While many countries did not have any idea that what they should do, and how they should react, but UAE took immediate precautionary measures and responded to ensure the safety of citizens, at both national and international level.
UAE uses all essential tools and requirements to minimize the risk of COVID-19 (Coronavirus) even before getting instructions by WHO, as coronavirus was declared as a pandemic on 11 March 2020. In this way, UAE became one of the first countries to take all safety, and precautionary measures, by taking various control actions due to COVID-19 effects on business in Dubai.
Effects on Oil, and Non-Oil Sectors
The global oil prices are under pressure, and lower oil production in UAE is will adversely affect the twin balances, especially with a significant reduction in the non-hydrocarbon export. Whereas non-oil economies are also changing the prevailing conditions due to COVID-19, and the economy will weaken due to less domestic and external demand.
The global economy will also see the deepest contraction due to the great depression, so logistics, travelling, and global trade will also be affected. Locally, ongoing disturbances due to viruses have also affected domestic demand, and it will remain sluggish soon. All businesses are facing challenging environments for their survival, and there is significant uncertainty about how long it will be prevailing.
The government and central bank of UAE are supporting business initiatives at Emirati and federal level and has announced various outstanding packages and measurements. The central bank has also offered $ 70 billion support to the local banking sector, and this support is in the form of liquidity due to COVID-19 effects on business in Dubai.
Additionally, targeted measures have been announced by the Government to support SMEs. These measurements are mainly helpful to ensure business continuity as the economy will be reopened gradually.
Effects on Educational Institutions
All schools and educational institutes were close, and isolation recommendation to all citizens. The opening hours of offices reduced, and the timings of the opening of shopping malls were also instantly reduced. Moreover, on the phase basis, all kinds of event planning and organizations were to place the work on hold, due to coronavirus impact on the business.
Educational and training institutes were closing their doors, and transportation systems such as Tram and Metro were on a halt in UAE. After 2-3 weeks, there was the implementation of strict social distancing regulations, and all residents order to maintain social distance. Other than this there was the strict implementation of lockdown in the evenings to allow disinfection campaigns. Later on, there was 24 hours lockdown, but a permit system was introduced where residentials can leave home to get essentials such as medicine, and food.
However, the movement of frontline fighters such as health care professionals, and police were not restricting. But they have to wear masks, and gloves and various police checkpoints were established to ensure the compliance, due to coronavirus impact on the business.
The government has provided regular updates about prevailing conditions in both English and Arabic. In addition to this, hefty fine imposed on the individuals who were violating the laws. They were informed about the quarantine rules and were told that they might have to face strict legal consequences if they break the rules again due to COVID-19 effects on business in Dubai.
Resultantly, due to strict communications, and measurements, no panic was observed like other countries. Everyone was behaving well civilize, sensible, calm, and follow all instructions with great care. There was no shortage of basic amenities, and the government reassure that everyone is staying safe at home. Other than this, there were no concerns, and other problems as pharmacies and supermarkets were great stock on the whole.
Work From Home
Sooner, the concept of work from home prevail, and work activities will regain at the online platform. Only in the few weeks, everyone was able to provide services online to virtual meetings, coffee breaks, training, and even conferences, due to COVID-19 effects on business in Dubai.
Although many events were cancelled, that, in turn, has drastically affected various businesses, especially small and medium-sized enterprises. Ministry of Economy of UAE has stated that the SME sector is contributing more than 98% of all the companies in the UAE, and it is contributing 52% of the non-oil GDP.
COVID-19 (Coronavirus) exerts a sheer financial impact on all kinds of business activities, and employees of all companies facing effects. Most organizations sent employees to their homes, but on the paid leaves, and some organizations sent them home on unpaid leave. While some organizations have deducted 50% of the salaries, but for some, there is no other option, and they are terminating their employees.
UAE government is generously supporting business and is offering simultaneous packages along with a significant reduction in the costs of doing business (25-98%). The primary purpose is to encourage investment in the business-related activities and to improve production, import, exports, trading, and innovation, that will exert a significant impact to grow the business development due to COVID-19 effects on business in Dubai.
Special Offers For Unemployed Residents
Other than support, the government of UAE has also offered consolidated platforms for unemployed UAE based residents, so that they can apply for jobs on the virtual labour marketing portal. Employers were asked to add details of their vacancies, on this portal, so that it can be accessed by the UAE based residents and visa holders, as there is a negative impact of coronavirus on business.
While most educational institutes, especially schools, are private, and the parents themselves directly pay them. The pandemic has also negatively influenced the ability of parents to pay the school fees of their children. As, the schools are closed, so parents must support, oversee, and manage the home learning of students at the online platform.
Ready to Face Hurdles
Many educational groups and school owners are accepting and recognizing all the associated hurdles and are generously responding with financial support. Some institutes have reduced the fees by 20-30%, for the final academic year, and some institutes are offering direct support to the affected parents.
Also, the utility companies have reduced prices of water and electricity to give significant relief to the business owners and families suffering in the pandemic. The government has launched short certification courses, and residents can attend this online. Later, they will be certified as MBRU community immunity ambassador program from medicine, and health sciences university.
This certification is to ensure the safety and following of rules to combat the pandemic. Business owners and UAE residents are working in collaboration to fight with the consequences of this pandemic. Various business owners have announced ample support in terms of financial funding, provision of manpower support, free fuel for the vehicles, provision of medical equipment, and some of them are much supporting the national disinfection programs due to COVID-19 effects on business in Dubai .
Effects on Health Care System
Private hospitals, public hospitals, hotels, and other spacious buildings are being used to treat coronavirus patients with great care. Additionally, UAE residents are providing with proactive online initiatives by a team of psychologists; by the national program for happiness, and well-being so, that the psychological impact of COVID-19 on people can reduce.
Most healthcare services in the UAE are private, and they are providing and managing services through the health insurance system. At the same time, insurance about health care is also offered by employers and company owners, after the outbreak of a pandemic. It was said that all residents would be having free access to health care services and facilities. If they get a positive test for COVID-19, additionally, all kind of funding will provide by the government and hospitals. And it will also apply to the UAE visa holders, even if they do not have insurance.
Pandemic Will Be Controlled
The latest figures show that many patients are recovering. And there are only a few deaths, so there is hope that the economy and business activities will stabilize. As well as, the curve will flatten in a short time due to COVID-19 effects on business in Dubai. According to the world meter website, UAE is at number 3 in the world. For conducting coronavirus testing, per million of the population.
Door to door testing completes in the congested areas, to reduce and control the number of cases. Also, there has been the implementation of 20 drive through testing centers across the UAE. All of these initiatives are providing excellent results to control COVID-19.
Here is an important point to note that the UAE economy has been hit hardest. Its 2020 expo has also been postponing till 2021. While, Holy month Ramzan starts in mid-April, and usually, businesses are slow at this time. Also, the summer season is going to be at its peak, but soon all business-related activities will regain.
Role of Government, People, and Organizations
Understandingly, businesses are struggling in the harder times, but an actual walk, and talk. In terms of risk analysis, management, and values can be seen. Most business owners have adopted the change strategies and alternatives. Also, they are providing with government support. Due to COVID-19 effects on business in Dubai, so there are positive signs about the survival, growth, and development.
Pandemic has brought UAE people together, and more robust, and they are working in solidarity than ever before. They are getting more supportive and caring, and are providing exceptional services to improve the living standards. And to promote the business establishment and company formations.
Organizations and individuals are providing free webinars, coaching, consultation services, and are volunteering to support small and medium enterprises. The optimism and humanity, in combination with collaboration, is helping residents and organizations not only to survive but to thrive.
UAE is equipping with the proper crisis management approaches and excellent response capabilities. Therefore, the UAE is ensuring efficient management of the crisis, and all incidents to minimize the hazards and negative impacts. The government is meeting and maintaining priorities with confidence. Due to COVID-19 effects on business in Dubai, to ensure the continual delivery of critical national infrastructure.
Absence of Tourists
At present many tourists are in UAE due to travel restrictions. But still, the number is not many, and the majority of them return to their homelands. Due to this reason, there has been a significant decrease in consumer demand. And it mitigates the residents who stay in the UAE and are generating consumer demand; Although the government allow the sale of basic life necessities. Here safety is a key factor, and all kinds of delivery services focus on ensuring safety and hygiene standards.
Strategies for Landlords
UAE government is also offering initiatives and support programs due to COVID-19 effects on business in Dubai. It implements various policies to support all kinds of business activities, such as granting concessions for visa fees, halting evictions related to property, and municipality fees. Additional incentives propose by overseas government, and there have been tax breaks and stimulus for all kinds of business investments.
Some of the landlords have also established relief funds to support retailers in their shopping malls. All kinds of business owners are contacting and communicating with landlords to get concessions. Regardless of the buying power, there should be contact with the top vendors for the support.
The government is ensuring that all kinds of concessions from the suppliers, and landlords, is documenting in the agreements. Reduction in consumer demand is happening all over the economy. So downtime can help to derive the sales in the emerging directions.
There is a lot to consider for business growth in a pandemic. As the situation is evolving, and there has been great support from the Government and other organizations. So there is hope about positive development, and regaining of all business-related activities.
UAE has originated itself leader for management of tough times, and crisis due to COVID-19 effects on business in Dubai. By helping people and business development most efficiently and correctly.