Covid fallout less severe on diversified Arab economies, especially UAE, Saudi

Covid fallout less severe on diversified Arab economies, especially UAE, Saudi

The UAE is among the highest-rated sovereigns in the GCC.. The fallout of the Covid-mandated lockdown will be less severe in diversified Arab economies, in particular the UAE and Saudi Arabia, with both countries likely to have a smaller contraction in 2020 followed by a moderate recovery in 2021, a new research report has revealed.. The research report, published by Trends Research & Advisory, said the coronavirus outbreak is expected to be severe for the oil-exporting countries, especially the less-diversified ones, such as Algeria and Iraq.. "The loss of oil revenues, the reversal of capital flows, the negative impact on workers' remittances, the slowdown of the world economy and the collapse of activities like tourism and international trade are all possible sources of weaknesses for the majority of the Arab economies during the short term and possibly the medium term," said the report.. The World Bank has said the UAE's immediate challenge is to mitigate the economic fallout from the pandemic, "given its impact on sectors into which the Emirates had successfully diversified [through flight disruption, lower transit trade and tourism]".. "Despite being relatively diversified compared to its GCC neighbours, the UAE remains dependent on regional oil-driven liquidity and is