A panoramic view of Dubai Marina.
Business Bureau, Gulf Today
The UAE has emerged as one of the top five most globally connected countries in the world according to the DHL Global Connectedness Index 2020 released on Wednesday. Now in its seventh edition, the report compiled in collaboration with DHL and the NYU Stern School of Business provides a comprehensive assessment of globalization during the COVID-19 pandemic.
It tracks international flows of trade, capital, information and people across 169 countries and territories, finding that the UAE, along with the Netherlands, Singapore, Belgium and Ireland, lead the global ranks.
After holding steady in 2019, current forecasts imply that the index will fall significantly in 2020 due to the distancing effects of COVID-19 on societies, such as closed borders, travel bans and grounded passenger airlines. Nonetheless the pandemic is unlikely to send the world’s overall level of connectedness below where it stood during the 2008 - 09 global financial crisis. Trade and capital flows have already started to recover and international data flows surged during the spreading pandemic as in-person contact went into the online world, boosting international internet traffic, phone calls and e-commerce.
“The current crisis has shown how indispensable international connections are for maintaining the global economy, securing people’s livelihoods and helping companies strengthen their trading levels” says John Pearson, CEO of DHL Express. “Connected supply chains and logistics networks play an essential role in keeping the world running and stabilising globalisation especially at a time of a crisis that spans our globe. This reminds us of the need to stay prepared for any challenge. The recent vaccine breakthrough has put a spotlight on the systemic importance of fast and secure medical logistics dependent on a worldwide interconnected network that effectively ensures international distribution.”
“The UAE has remained resilient to the global pandemic, prompted by the government’s vigilant efforts to contain the spread very early on and minimise the country’s health, safety and economic impact. The UAE’s robust logistics capabilities and transport infrastructure enabled the country to sustain open supply chains and trade links, which ensured that local access to COVID-19 tests and the availability of Personal Protective Equipment , PPE, for nationals and residents was one of the highest in the world,” said Nour Suliman, CEO of DHL Express MENA.
While COVID-19 has disrupted business and life around the world, it has not severed the fundamental links that connect nations. “This report shows that globalisation did not collapse in 2020, but that the pandemic did transform - at least temporarily - how countries connect. It also demonstrates both the dangers of a world where critical linkages break down and the urgent need for more effective cooperation in the face of global challenges,” comments GCI lead author Steven A. Altman, Senior Research Scholar and Director of the DHL Initiative on Globalisation at the NYU Stern School of Business. “Stronger global connectedness could accelerate the world’s recovery from the COVID-19 pandemic, as countries that connect more to international flows tend to enjoy faster economic growth.”
Predictably, lockdowns and travel bans to curb the spread of the virus have led to an unprecedented collapse of people flows in 2020. The number of people traveling to foreign countries is on track to fall 70% in 2020, according to the latest UN forecast. International tourism may not return to its pre-pandemic level until 2023. In contrast, trade, capital, and information flows have held up surprisingly well. International trade has rebounded strongly after a sharp plunge at the onset of the pandemic and remains a vital backbone for economies worldwide.
Capital flows were hit harder. Foreign direct investment, FDI, flows, which reflect companies buying, building or reinvesting in operations abroad, could fall 30-40% this year, as also projected by the UN. However, strong policy responses by governments and central banks have helped to stabilize markets. Digital information flows have surged as the pandemic has sent work, play and education online. People and companies rushed to stay connected digitally, driving double-digit increases in global internet traffic.
The DHL Global Connectedness Index employs more than 3.5 million data points to track the globalisation of 169 countries over the period from 2001 to 2019. It measures each country’s global connectedness based both on the size of its international flows relative to the size of its domestic economy (‘depth’) and the extent to which its international flows are distributed globally or more narrowly focused (‘breadth’).
Meanwhile, the UAE financial markets on Tuesday posted gains of around Dhs6.5 billion in market cap driven by the realty and banking blue chips.
The upbeat sentiments saw Dubai’s main stocks index edging up 2.00 pct to 2, 532, and ADX closing higher 0.4 pct than the last session at 5,062 .
In the Abu Dhabi Securities Exchange, Aldar Properties significantly increased to AED3.25, FAB to Dhs13.08, and ADQ to Dhs40.5.
In Dubai Financial Market, Emaar Properties rose to AED3.59, amid transactions of AED92 million, with Emaar Development following suit, closing higher at AED2.90.
The UAE has taken a leadership role in the Middle East region in technology adoption in real estate sector. Dubai has largely been responsible for changing the mindset when it comes to adopting new technologies.
The Dubai International Financial Centre (DIFC) has announced that its membership of the World Alliance of International Financial Centres (WAIFC) has been unanimously approved by its board.
Dubai Technology Entrepreneur Campus (Dtec), the largest tech hub and co-working space in the Mena region wholly owned by Dubai Silicon Oasis Authority (DSOA), signed a Memorandum of Understanding (MoU) with OQAL Angel Investors Network,
The top three transactions were a land in Madinat Dubai Almelaheyah sold for Dhs212.6 million, followed by a land that was sold for Dhs53 million in Hadaeq Sheikh Mohammed Bin Rashid, and a land sold for Dhs212.6 million in Madinat Dubai Almelaheyah in third place.
Under the provisions of the Corporate Tax Law, Corporate Tax will not be applied to salaries or other personal income from employment, whether it is earned from work in the government, semi-governmental or private sector.
"Instead of going to jewellery showrooms, they (customers) can come here directly and they can get the coins here," GoldSikka Vice President Pratap, who only gave his first name, said.
Saudi Arabia and China showcased deepening ties with a series of strategic deals on Thursday during a visit by President Xi Jinping, including one with tech giant Huawei.