Most countries have introduced home confinement measures, from mandatory national lockdowns to milder isolation recommendations and curfews as a result of the accelerating number of confirmed COVID-19 cases. In effect, this resulted to suspension of operations of many companies while creating demand and supply shocks reverberating across the global economy.
Based numerous economists, the following industries, not limited to, would adversely be affected by the pandemic: airline and logistics, travel and tourism (due to restricted travel); real estate (due to mall closures and absence of residential property sales); construction (minimal activity due to logistic restrictions); restaurants, retailers and manufacturers of discretionary goods; and financial institutions (higher trading losses, credit costs, provisions and nonperforming loans, weaker demand for loans and fee income).
To support the economy in UAE, the government has introduced various support initiatives to support liquidity of businesses which include cancellation on reduction of various government fees, deferment of payments, stimulus packages and funding.
The local government’s contingency plans emphasize on scaling up the country’s readiness and response operations as the public health sector continues to be strained while uncertainty amongst businesses and individuals loom. Corporate investors should ensure to develop a detailed, practical and effective business continuity plans and disaster recovery measures to sustain or re-establishing its operations as quickly as possible.
Frances Joyas
Director – Audit & Assurance
[email protected]