“As the region experiences an increase and, improvement in non-oil private sector performance, and loosening of Covid-19 limitations despite a reduction in new Covid-19 cases, economic recovery in the UAE and the Gulf region is gaining traction.
The non-oil output growth reached a two-year high in July, while output and new business increased at the fastest rates since July 2019.
According to David Owen, an economist at IHS Market, the UAE’s non-oil sector had a busy start to the third quarter of the year, with firms reporting the largest increase in new orders in two years, owing to increasing domestic sales and improving market confidence .“Daily new Covid-19 instances have continued to decline and are now at their lowest level since October on a seven-day rolling basis.
As the number of new Covid-19 cases in the UAE fell below 1,000 per day, authorities announced the reinstatement of tourist visas on August 30 and loosened restrictions for the public and private sectors.
The elevated concentrations of vaccination rates, according to William Jackson of Capital Economics, have allowed authorities throughout the Gulf to relax tactics to manage Covid-19 in the last month or so:
“The UAE continues to lead the vaccine race and has begun administering booster shots in recent weeks. Vaccine distribution has accelerated rapidly in the Gulf, with most countries currently inoculating upwards of 60 out of every 100 people with at least one dose. Economic recovery in the Gulf is expected to pick up speed over the rest of this year and into 2022 as limitations are eased in tandem with increased oil output and higher oil prices, allowing fiscal policy to be lifted. He did note, however, that financial sector is a problem, with loans to the private sector in the UAE remained in deep recession as local banks struggled with mounting bad loans.