UAE, Saudi roll out $40bn in fiscal stimulus to counter coronavirus

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UAE, Saudi roll out $40bn in fiscal stimulus to counter coronavirus

On Saturday, the 14th of March 2020, Central Banks of United Arab Emirates alongside the Kingdom of Saudi Arabia had released a large war chest worth of a combined $40 billion to wrangle against the rattling coronavirus which had every possibility to cause mass-scale casualties in the Mideast’s two of the largest economies.

Besides, in a statement, the financial regulator and Central Bank of United Arab Emirates, said on Saturday (March 14th) that the financial overseers of United Arab Emirates had been planning to support the nation’s coronavirus-hurt economy with a fiscal stimulus of as much as $27 billion or 100 billion dirhams.

In fact, after Europe had become the present epicentre of the Covid-19 outbreak and Iran had turned out to be the third-worst hit economy, UAE, which is not as resource-rich as Saudi Arabia, has been facing off major financial backlashes, in particular in the tourism and transport industry.

Aside from that, in a separate statement, the Kingdom of Saudi’s monetary authority or Central Bank was quoted saying in a separate statement at the same day that it had arranged a sum of $13.32 billion or 50 billion riyal to insulate small- and medium-scale businesses from the financial fallouts of a clattering coronavirus outbreak which had killed more than 6,000 people and infected over 165,000 as of Sunday (March 15th) across the world.

Nonetheless, UAE and Saudi had reported only 85 and 105 coronavirus positive cases respectively, though a lack of testing kits could have been a major obstacle to find out the precise number of people infected with the virus, suggested analysts.