The UAE’s economy is set to recover and return to pre-Covid-19 levels in the next three years, according to US-based credit rating agency Moody’s. In its annual credit analysis, the credit rating agency rated the UAE’s credit profile as Aa2 stable, media reports said.
In this regard, Thaddeus Best, a Moody’s analyst told the media, ‘’However, limited institutional transparency and the absence of public data on the composition of offshore assets and some aspects of the emirates’ public finances remain the UAE’s main credit constraints. Our baseline forecast assumes that nominal GDP will recover to pre-pandemic levels over the next three years. The rapid rollout of the coronavirus vaccine will support a more rapid recovery in domestic tourism and boost the hospitality and retail sectors.’’
According to UN Environment Executive Director, Erik Solheim, the biggest challenge for the Middle East and especially UAE is the transformation from an oil-based economy to one a more diverse one. However, the UN environment head lauded the UAE in this regard, and claimed that the UAE is a success story.
Data released officially by the UAE revealed that its economy contracted by 6.1 percent in 2020 due to the coronavirus pandemic and the slump in global oil demand. The Federal Competitiveness and Statistics Centre further said in its report that the non-oil economy shrank by 6.2 percent during the same period.