UAE is the Arab region’s leader in the COVID Economic Recovery Index

In the COVID Economic Recovery Index Ranking, issued by the Horizon Research Group, the United Arab Emirates leads the Arab region.

Based on their overall health resilience and the pre-existing structural strengths and weaknesses at the core of their recovery capacity, the Index assesses how 122 countries are positioned for recovery.

UAE leads the economic recovery index

The UAE occupies prominent positions among the advanced countries assessed by the Group in terms of health resilience, highly educated workers, low debt levels, governance & social capital and the digital economy, respectively, thanks to its long-term economic agility, robust, adaptive institutional system and high literacy rate.

Although initially deeply impacted, countries , including the United Arab Emirates, Luxembourg, Singapore, Israel, Malta, or Ireland, may have shown greater economic resilience that will help recovery.

Most of these countries are relatively small , open economies, highly dependent on foreign trade and/or capital flows, and on sectors vulnerable to COVID containment measures. Most of these countries are digitized and have strong institutions and well-educated populations, the Index reads.

To get a full picture, the economic outlook for the region must be viewed from many different perspectives. The twin challenges faced by the COVID-19 pandemic and depressed oil price levels are evident in the near term. The resilience and potential of the economies of the region are equally evident in the longer term , especially considering the appetite of long-term investors to increase their exposure to the region.

In strictly economic terms, HSBC economists expect that in 2020, the economies of the Gulf Cooperation Council will contract on average by 5.6 percent year-on-year. In 2021, the forecast is for growth of 3.9 percent year-on-year, which would be a level of growth that has not been seen since 2015 and points to the strong underlying potential of the Middle East.

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