The UAE has been ranked as the most resilient economy in the region in 2021, higher than some of the world’s bigger economies including Italy, South Korea, Israel, Malaysia, Saudi Arabia and China, as per a new global index.
In the FM Global Resilience Index 2021, the UAE has been ranked 32nd globally in the list of 130 countries, ahead of Qatar (34th), Israel (37th), Bahrain (49th), Saudi Arabia (55th), Turkey (60th), India (62nd), Oman (69th), China (77th) and Kuwait (86th).
The index measures three categories, economy, risk quality and the supply chain. The strong resilience and confidence in the UAE’s economy during the year of pandemic reflects its effective government measures, investor-friendly policies, innovative approach towards new challenges and success against COVID-19.
The global rating agency Moody’s Investors Service has also stated that the UAE economy’s resilience to a crisis is above the average when compared to other sovereigns that it rates. The country’s economic resilience demonstrates its effective policy measures.
Abu Dhabi’s stable outlook reflects that its fiscal strength will remain resilient to risks related to the COVID-19. Further, the UAE capital had demonstrated fiscal resilience during the previous period of lower oil prices, Moody’s added.
“The manner in which the UAE has handled the challenges around Covid-19 shows the ability of UAE’s Rulers and its administration. Because of the appropriate and timely measures, including vaccination, the UAE’s economy is on a growth trajectory,” Anish Mehta, immediate past chairman of the Institute of Chartered Accountants of India – Dubai chapter, said.
“Over the years, leanness, speed and short-term profit have often reigned as primary concerns of global businesses. But the historic events of 2020 reminded the world that these qualities are subordinate to the ability to resist, rebound from or operate through lockdowns, demonstrations and climate-related disruptions.”
The FM Global Resilience Index 2021 rated Denmark as the most resilient economy worldwide, followed by Norway, Luxembourg, Germany, Switzerland, Finland, Sweden, Austria, the US and the UK. Haiti, Venezuela, Iran, Chad, Ethiopia, Lebanon, Mali, Mozambique, Nicaragua and Nepal have been ranked as the least resilient.
Ukraine is the index’s biggest riser, climbing up from 84th to 63rd, while the biggest decliner is Oman, sinking from 57th to 69th due to fall in economic productivity and oil intensity.