The Standard & Poor’s credit rating agency said today, Saturday, that the actual gross domestic product in Abu Dhabi will shrink by 7.5 percent this year due to the drop in oil prices and the impact of the Corona virus outbreak.
The agency expected the emirate’s fiscal deficit to rise to about 12 percent this year from 0.3 percent in 2019, according to Reuters.
She added that the smaller Emirates in the United Arab Emirates are expected to receive “exceptional financial support” from the country with the support of Abu Dhabi in the event of financial hardship.
This comes in conjunction with the announcement of the Department of Economic Development – Abu Dhabi to establish a program to receive the views and proposals of exporting companies registered in the Emirate of Abu Dhabi regarding the challenges they face, especially in light of the repercussions of the crisis “Covid-19” in order to study and provide support to them in cooperation with strategic partners from government and semi-government agencies. Government.
The department’s representative said that the aim of this initiative is to improve the efficiency of the export environment at the emirate’s level, whether by facilitating procedures or addressing logistical barriers that cause higher costs so that exporters can increase their exports, as well as encouraging foreign investors to invest in the emirate in order to export to foreign markets.
He stressed the keenness of the government of the Emirate of Abu Dhabi to support the local product and enhance its contribution to the emirate’s gross domestic product by providing support to the exporting and importing national companies and factories to enable them to enhance the competitiveness of the local product in the global markets, according to the Emirati WAM agency.