UAE · 2020. 4. 1. · Also on Monday, Dubai’s Burj Khalifa, Handling Corona Crisis 4 Covid-19:...

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Coronavirus: We are prepared to face any challenge, says Sheikh Mohamed bin Zayed Content Covid-19 reshaping supply chains Is global recession unavoidable? News P. 4 P. 6 P. 7 Nr. 27 | March 2020 Abu Dhabi Crown Prince reassures UAE citizens and residents about food and medicine Sheikh Mohamed bin Zayed has re- assured the UAE that the country has enough supplies of food and medicine to address the challenge of the Covid-19 pandemic. The Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces said the Emirates was “faring well” thanks to early efforts to contain infection rates. In a statement on Wam, the government news agency, he argued that the differ- ence between nations who adopted early measures to contain the virus and those which did not were clear to see. “In the UAE, we have adopted ration- al and early advanced precautionary measures before other countries around us to stand up to the challenge,” he said. “Therefore, the infection tally in the UAE is less thanks to our early re- sponse to contain the virus at its onset. The UAE has implemented a series of measures over recent weeks aimed at containing the outbreak. Schools have been closed, events can- celled and residents have been encour- aged to practise “social distancing” - a measure that has been proven to slow the spread of the virus in hard-hit coun- tries such as South Korea. But despite the continuing precautions, some UAE residents have begun stock- UAE ECONOMIC BULLETIN EMBASSY OF THE UNITED ARAB EMIRATES BERLIN Handling Covid-19 Crisis The Covid-19 global pandemic is a serious challange for mankind. Several mesaures to handle the crisis were also taken in the United Arab Emirates. This edition of the UAE Economic Bulletin gives an overview about the already made progress and why the UAE is ready for the challange.

Transcript of UAE · 2020. 4. 1. · Also on Monday, Dubai’s Burj Khalifa, Handling Corona Crisis 4 Covid-19:...

Page 1: UAE · 2020. 4. 1. · Also on Monday, Dubai’s Burj Khalifa, Handling Corona Crisis 4 Covid-19: The reshaping of supply chains and why the UAE is ready for it The coronavirus is

Coronavirus: We are prepared to face any challenge, says Sheikh Mohamed bin Zayed

Content

Covid-19 reshaping supply chains

Is global recession unavoidable?

News

P. 4

P. 6

P. 7

Nr. 27 | March 2020

Abu Dhabi Crown Prince reassures UAE citizens and residents about food and medicine

Sheikh Mohamed bin Zayed has re-assured the UAE that the country has enough supplies of food and medicine to address the challenge of the Covid-19 pandemic.

The Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces said the Emirates was “faring well” thanks to early efforts to contain infection rates.

In a statement on Wam, the government news agency, he argued that the differ-ence between nations who adopted early measures to contain the virus and those which did not were clear to see.

“In the UAE, we have adopted ration-al and early advanced precautionary measures before other countries around us to stand up to the challenge,” he said.  “Therefore, the infection tally in the UAE is less thanks to our early re-sponse to contain the virus at its onset.

The UAE has implemented a series of measures over recent weeks aimed at containing the outbreak.

Schools have been closed, events can-celled and residents have been encour-aged to practise “social distancing” - a measure that has been proven to slow the spread of the virus in hard-hit coun-tries such as South Korea.

But despite the continuing precautions, some UAE residents have begun stock-

UAE ECONOMIC BULLETIN

EMBASSY OF THE

UNITED ARAB EMIRATES

BERLIN

Handling Covid-19 Crisis

The Covid-19 global pandemic is a serious challange for mankind. Several mesaures to handle the crisis were also taken in the United Arab Emirates. This edition of the UAE Economic Bulletin gives an overview about the already made progress and why the UAE is ready for the challange.

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piling food and items like toilet paper, repeating scenes of bulk buying seen in other countries.

Sheikh Mohamed urged restraint, however, saying there was no need to stockpile as the UAE had enough sup-plies. “There are a lot of things the state is doing which we can’t reveal,” he said. “I’d like to reassure every citizen and res-ident of the UAE that our country is in-finitely able to supply everyone with all the food and medicine they could ever need.”

Meanwhile on Monday, Sheikh Mo-hamed and other officials from the Emir-ates were briefed by a Covid-19 working group in a video conference. During the meeting, Sheikh Mohamed conveyed the directives of President Sheikh Khalifa to use all available resources to contain the outbreak.

On Tuesday, the UAE called on its cit-izens living or working overseas to re-turn home to the country amid increas-ing international travel restrictions. The Ministry of Foreign Affairs and International Co-operation also urged any Emirati who found themselves un-well while abroad to contact the rele-vant UAE embassy to arrange for their safe return.

“Due to the Covid-19 pandemic and many flight restrictions around the world, the UAE Ministry of Foreign Affairs and International Co-opera-tion urges all UAE nationals currently outside the country to return home,” a

statement said. “The ministry also asks students and patients that they contact the UAE embassies in they countries they are in to co-ordinate a safe re-turn.”

To date, the pandemic has claimed the lives of more than 7,000 people and there are now around 182,000 known cases of Covid-19 worldwide. The UAE has recorded 98 cases.

Abdulrahman Al Owais, Minister of Health and Prevention, said on Monday that most of those infected in the coun-try were in a stable condition, except for two cases who were still in intensive

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care.‘’The capacity and readiness of all health facilities and labs in the public and private sectors have been upgraded to conduct high-efficiency virus tests,’’ Mr Al Owais said.

He said all passengers arriving in the UAE were subject to precautionary measures, including medical examina-tions and thermal scanning through 32 land, sea and air entry points.

Sheikh Mohamed said the role the me-

dia played in battling the virus was key. He called on organisations to help raise awareness and prevent the spread of fake rumours.

“We won’t hesitate to take any further precautionary steps if necessity arises over the coming period,” he said.

“Our traditions are very dear to us but we must be practical during these times. I ask every Emirati and resident to do what is necessary, and let’s not allow our

traditions to become a source of harm to our families and society. “Take care of your mothers and fathers and families.”

He went on to express his appreciation for the UAE’s health workers who were focused on tackling the virus. “They stand on the front line of our defences,” Sheikh Mohamed said. “We owe them a great debt and we will never forget their service.”

Also on Monday, Dubai’s Burj Khalifa,

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Covid-19: The reshaping of supply chains and why the UAE is ready for it

The coronavirus is teaching the world a fast lesson in how fragile global supply chains and traditional sourcing methods can be.

With the global economy under fire, it makes a strong case for innovative tech-enabled business models that ad-dress conventional supply chain ineffi-ciencies. Nations are increasingly more reliant on familiar trade partners and when pandemics such as Covid-19 crip-ple production, cancel flights and close borders, the effects are devastating; par-ticularly by industries where suppliers and distributors rely heavily on single source markets and for import based economies. To safeguard industry and minimize disruption to food security we need to rethink, redesign and har-ness technology to strengthen our sup-

ply chains; innovation and technology is key.

‘The Coronavirus might be the unfor-tunate crisis that forces companies to accelerate the adoption of a true Digital Supply Chain’ (Forbes, 2020)

The digitization and increased automa-tion of traditional supply chain func-tions eliminates the unnecessary steps that too often cause the most tension for businesses in difficult climates. Tech-nology helps increase their resilience to external shocks through the multiple ef-ficiencies it brings.

The UAE’s adoption of technology and its strategic location has lent itself to be-ing able to support countries in the re-gion at this time.

Agility

When common import channels are sti-fled by global pandemics, effective and adequate alternatives, beit local or inter-national, need to be at the ready for im-mediate backup. The shock to the global flow of goods is rattling many organiza-tions (and nations) to their senses: it no longer makes sense to put all your pro-cessing eggs in one basket. Having many international suppliers across all regions of the globe we have been able to easily pivot around trade route challenges and border restrictions at this time. Singular supplier relationships may allow for cost competitiveness short term but opens businesses to high risk when that single source is threatened.

At this time where certain markets are restricted, open marketplaces with a large basket of goods when it comes to source markets has meant that 89% of international suppliers on the Seafood

To safeguard industry and minimize disruption to food security we need to rethink, redesign and harness technology to strengthen our supply chains, writes Sean Dennis

the world’s tallest building, was lit up in the green, white and red colours of the Italian flag to show solidarity with the country, the worst hit in Europe. It also had the words “We are with you” as a sign of support. Covid-19 has so far killed 2,158 people in Italy and infected 27,980.

Dubai’s Burj Khalifa urges resi-dents to ‘Stay Home... Stay Safe’ over coronavirus outbreak

Dubai’s Burj Khalifa lights up with the message “Stay Home... Stay Safe,” urg-ing residents to take the measures to stem the spread of coronavirus cases in the UAE.  The UAE has called upon the public to stay at home except in cases of necessity, including getting essential supplies, such as food and medicine, or performing jobs.

The Ministry of Interior (MoI) and the National Emergency Crisis and Disas-ters Management Authority (NCEMA), asked the public to comply with the in-structions issued by competent health and security authorities, primarily limit-

ing social contacts and avoiding crowd-ed places to ensure their safety and well-being. The UAE also decided to close all commercial centres, and shopping malls along with open fish, meat and vegeta-bles markets for a renewable period of two weeks. The UAE law on communi-cable diseases, which includes fines and jail terms, will be enforced against all violators.

The ministry called upon the public to adhere to preventive measures, follow news updates on the health develop-ments from the official government sources and disregard rumours and not circulate them. “Violators will be subject to legal actions,” the Ministry said.

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Souq platform are still able to satisfy UAE demand. This paired with a part-nership with Emirates SkyCargo has al-lowed us to minimize disruptions to our business and the food supply to buyers in the UAE.

Digitization

When global supplies are threatened it’s important to see the value in ‘home-grown’ innovative aquaculture methods as an alternative to solely relying on purely internationally sourced seafood. There’s been an investment and inno-vation wave in aquaculture and urban farming in the UAE over the past dec-ade in the interest of food security. This is great news for when we are forced to look to be less reliant on globalization, and become more self-sufficient - but how do buyers have access to these local markets?

The UAE has already started to move to digitizing these markets, one of these projects being the partnership with Sea-food Souq and Sahab for Souq Al Jubail fish market. Building a platform similar to that of ‘Fulton fish market’ in the USA - the nation’s largest and second oldest continuously operating fish market.

Within 2 years of launching the company’s revenue was expected to top $10 million and continue to double every year. (Yahoo Finance, 2019)

At a time where many countries are going into forced lockdowns business-

es with online capabilities for ordering are thriving. The UAE has one of the fastest growing e-commerce markets (Gulf news, 2020) and so regardless of times of crisis businesses need to think about adopting technologies into their business to access this untapped po-tential.

Efficiency

As COVID-19 continues to strain re-source management and capital expend-iture, cost savings and waste reductions become critical. More direct and more efficient channels become the best way to achieve this. In addition, as aware-ness of germs and focus on extra hygiene precautions increases, consumers will be conscious of minimizing the exchange of hands their products pass through. Supply chain transparency is vital and in turn applies pressure to minimize un-necessary risk created by multiple expo-sures.

Businesses are often unaware of what’s happening across their supply chain be-yond the first tier, so they’re unable to know where threats to production capac-ity exist’ (Supply Chain Digital, 2020)

The topic sensibly leads to a digital dis-cussion -- from inventory to traceability systems (SFS trace). As we progressively reduce interacting face-to-face, not just with our colleagues, but with clients as well, automation and digitization is no longer a bell and whistle; it’s imperative for businesses to implement to ensure survival.

Diversified globalization

The COVID-19 global pandemic has swiftly brought to attention the need for businesses and regions to take faster steps towards the adoption of technolo-gy and smarter risk competitive business models. Even through the other side of this pandemic there are constantly po-tential disruptions that threaten global supply chains, from climate change to health pandemics, political disruption and trade conflicts; businesses need to have the capabilities to swiftly change locations in what Forbes calls ‘Nomadic sourcing.’ This isn’t about reversing glo-balization but changing it, improving it and using advancements in technology to re-shape and strengthen the fragility of supply chains, not only so they can survive in times of crisis but can in-crease their revenue when it’s business as usual. By treating technology as a utility not a luxury, the UAE has secured itself during this time of crisis. On top of that, being so importantly located and posi-tioned as a global logistics hub, Dubai and Seafood Souq aim to be part of the lead movement for change and adoption of a more efficient supply chain both for globalization and localized trade.

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Food Securit y

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NATIONAL FOOD SECURITY STRATEGY

2021 mission

UAE’s population having access to sufficient, safe and nutritious food for an active and healthy life at affordable prices at all times

To champion agribusiness trade facilitation through a whole-of-nation apparatus and to ensure food security under all circumstances through enabling technology-based production and supply of food, promoting international trade partnerships, and enforcing policies and regulations to enhance nutritional intake and reduce food loss and waste.

2051 VISIONWorld leading hub in innovation-driven food security

UAE's Target on the GlobalFood Security Index

9Current 2021 2051

1

31

Domestic ProductionImpact

Domestic production increaseof strategic food items

+100.000TONS

Water supply for agriculture m3/day2016 2036

8.2MN 7.1MN

UAE Water SecurityStrategy 2036

Water – Food Nexus

Monetary Impact

Employment Impact

Economic Impact 2021

~16.000

BILLION22

jobs

aed

Consumption Production Nutrition

Main Food Items

Build an effective food security governance

model Develop the National

Food Security Database

Build human capacity forfood security functions

Engage the community to shift food security

notions and behaviors

Establish and implementa national R&D Food

Security agenda

Enablers

Plant products

Livestock products Fisheries

Cattle meat Goat meat EggsPoultry meat Milk

Fruits

Apples Bananas

Dates

Vegetables

TomatoesLeafy Greens

Potato Cucumber

Other

Oils

Grains & Pulses

RicePulses

Wheat Sugar

18 main food items67%

Secured target alternative international sources24%

Contribution of strategic investments from overall imports

15% Reduction in consumptionof unhealthy food elements

35% Reduction in foodsafety incidences

15%Increase in production of select strategic food items

Yield improvement from new technology-enabled production

1

32

54

Facilitate global agri-business tradeand diversify international food sources1

Enhance sustainable technology-enabled domestic food supply across the value chain2

Reduce food loss and waste 3 Reduction of foodloss and waste

15%

Sustain food safety and improve nutritional intake 4

Enhance capacity to respond to food security risks and crises 5

~30%

100%Achievement of reserve targets for 6 priority food items

Successful completionof emergency drills100%

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Food Securit y

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NATIONAL FOOD SECURITY STRATEGY

2021 mission

UAE’s population having access to sufficient, safe and nutritious food for an active and healthy life at affordable prices at all times

To champion agribusiness trade facilitation through a whole-of-nation apparatus and to ensure food security under all circumstances through enabling technology-based production and supply of food, promoting international trade partnerships, and enforcing policies and regulations to enhance nutritional intake and reduce food loss and waste.

2051 VISIONWorld leading hub in innovation-driven food security

UAE's Target on the GlobalFood Security Index

9Current 2021 2051

1

31

Domestic ProductionImpact

Domestic production increaseof strategic food items

+100.000TONS

Water supply for agriculture m3/day2016 2036

8.2MN 7.1MN

UAE Water SecurityStrategy 2036

Water – Food Nexus

Monetary Impact

Employment Impact

Economic Impact 2021

~16.000

BILLION22

jobs

aed

Consumption Production Nutrition

Main Food Items

Build an effective food security governance

model Develop the National

Food Security Database

Build human capacity forfood security functions

Engage the community to shift food security

notions and behaviors

Establish and implementa national R&D Food

Security agenda

Enablers

Plant products

Livestock products Fisheries

Cattle meat Goat meat EggsPoultry meat Milk

Fruits

Apples Bananas

Dates

Vegetables

TomatoesLeafy Greens

Potato Cucumber

Other

Oils

Grains & Pulses

RicePulses

Wheat Sugar

18 main food items67%

Secured target alternative international sources24%

Contribution of strategic investments from overall imports

15% Reduction in consumptionof unhealthy food elements

35% Reduction in foodsafety incidences

15%Increase in production of select strategic food items

Yield improvement from new technology-enabled production

1

32

54

Facilitate global agri-business tradeand diversify international food sources1

Enhance sustainable technology-enabled domestic food supply across the value chain2

Reduce food loss and waste 3 Reduction of foodloss and waste

15%

Sustain food safety and improve nutritional intake 4

Enhance capacity to respond to food security risks and crises 5

~30%

100%Achievement of reserve targets for 6 priority food items

Successful completionof emergency drills100%

Food Securit y

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Social Media

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Imprint

Publisher Embassy of the United Arab Emirates Hiroshimastr. 18-20D-10785 Berlin

Telefon: + 49 (0)3051651451www.uae-embassy.ae

Ghorfa Arab-German Chamber of Commerce and Industry e.V.Garnisonkirchplatz 1 D-10178 Berlin

Telefon: + 49 (0)30278907-0www.ghorfa.de

AmbassadorH.E. Hafsa Al Ulama

Secretary GeneralAbdulaziz Al-Mikhlafi

EditorKhalfan Al MatrooshiAhmed Shalaby

Layout: Fadhl Al-RomaimaMarcus Schoft @uaeembassyger

@uae_berlin @Ghorfa_Germany

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