The pandemic of Covid-19 and the subsequent economic recession has had a significant global effect on small and medium-sized enterprises (SMEs). According to an estimation rendered by the Ministry of Economy in December 2019, SMEs are the backbone of the UAE economy, contributing around 52 percent of the country’s non-oil gross domestic product. The COVID 19 pandemic that rocked the systematic practice of the general world was unprepared to meet even the world’s most flourishing economies. And the primary priority of a nation during the desperate periods of an outbreak is to minimize losses by moving effectively and efficiently to protect its people. A few nations around the world have been the first to move makers against this deadly pandemic, and also in the area of specialized crisis management, the UAE is a pioneer.
Adapting to New Ways of Operation
The new normal now is working from home and virtual meetings. Businesses are all transitioning to different forms of working, whether it be about workers working from home; holding meetings rather than in person through video conferencing; or needing to redesign their business premises to ensure that their employees are adequately protected. To think of goods and services that would be in demand after Covid-19, many company owners and entrepreneurs are racking their minds. They are attempting to predict what the potential working environment will be like and coming up with an innovation that will take the world by storm with the golden nugget.
Company meetings have been shifted online, which just did not exist in the UAE prior to Covid-19 as the free video call sites, such as Zoom and Skype, were not enabled as the telecoms operators of the UAE had their own paying for models. It is not just retail that is going online either. However, these facilities were given to organizations for free during Covid-19. If this gesture will be continued after Covid-19 or not has yet to be seen. If free video calling is possible after Covid-19, so this definitely has to be a massive advantage for UAE companies and enterprises as it would decrease telecoms prices thus levelling the playing field as such facilities are free in many countries worldwide. The cost of doing business would be decreased.
Help from the UAE’s Government
It is important for policymakers worldwide to keep the economy going right now. The UAE isn’t any different. Early on, it introduced stimulus programs and subsidies for companies at the federal and Emirate levels to aid businesses through the recession in order to remain operational rather than fall under. Under the ownership of H.H. In the aftermath of the COVID-19 pandemic crisis, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and President of the Dubai Executive Council, the government released an AED 1.5 billion economic stimulus plan to help business organizations in Dubai. The kit also comprises of 15 special programs directed at diverse markets, such as the travel and leisure industry, the shopping sector, the commercial sector and the commercial sector. The Central Bank of the United Arab Emirates (CBUAE) has proposed many rewards and financial assistance to industries as an additional support program for enterprises in the UAE, which will entail some monetary support to alleviate the effect of the pandemic on the industry.
Long before COVID 19 was formally declared by the World Health Organisation (WHO) as a Global Pandemic, the UAE government had begun to act on precautionary methods to combat the risky spread of the epidemic. In public areas such as shopping centres, offices and tourist destinations, the opening hours have been shortened, promoting more and more people to sit at home. For nationals who breached the lockout by charging heavy penalties as well as legal repercussions, the government adopted a rigid legal framework. Alternatively, the state declared that any breach of the lockdown regulation would lead to immediate expulsion from the country for expatriates residing and employed in the UAE.
The Silver Lining
In addition to the social distancing steps put in place to control coronavirus transmission, companies across diverse industries have been compelled to re-adapt their strategies. The hardest affected are industry industries like travel, transportation, e-commerce, and hospitality. During the pandemic, though, several firms are flourishing as they witness an increase in demand for their goods and services.
The results may, therefore, be favourable for certain industries and particular lines of the company. Health supplies suppliers and sellers, such as facemasks and hand sanitisers, have gained from increased demand and higher costs as supply tightens. More spending was often seen in the hard facilities of the health system, based on the scale of the epidemic and its persistence. Although there is no COVID-19 vaccine yet, local pharmaceutical producers have also raised the market for medicines to cure related diseases, such as antibiotics.
The e-Commerce sector is another such industry category. As customers adjust their behaviour by stopping heading to the malls, the COVID-19 is improving the e-commerce market in the UAE. The crisis is quickly changing in the outer world as we try to remain healthy at home. From thousands to hundreds, to ten, the number of citizens thought healthy to meet in one location has dropped. In several key areas, including the UAE, shops, shopping centres, pubs, and public areas, in general, are closing down. In the meantime, several workplace workers experience fresh pressures by operating full time remotely.
General trade, project management & design painting are the top industry sectors for the issuance of new business licenses in the UAE in May 2020, in addition to e-commerce. This is accompanied by activities related to renovation and repair & maintenance and then the often-famous activities related to food & drink.
How can Riz and Mona Consultancy help your Business during the COVID-19 Outbreak?
Among several business owners, the sudden emergence of the pandemic generated fear, but through our tailor-made facilities, professional advising and dexterity, we try to provide our customers with assistance in setting up a business in Dubai and different locations around the UAE. We recognize that the spread of the Corona Virus has disrupted the economy and caused businessmen and entrepreneurs to delay by a few weeks their company set up strategy. In the current global situation, we, at Riz and Mona Consultancy, plan to fix the problem and help you out. We have changed our business setup process so that, from the comfort of your house, you can record your business. To book your appointment with our business creation specialists, email us today.