"Preventing Economic Slowdown Due to COVID-19: Middle Eastern Countries Announce Financial Injection"

[Asia Economy Reporter Jeong Hyunjin] Middle Eastern countries announced that they will inject large-scale funds to minimize the economic damage caused by the spread of the novel coronavirus infection (COVID-19).

On the 14th (local time), according to the Washington Post (WP) and others, the United Arab Emirates (UAE) government decided to inject 100 billion dirhams (approximately 33 trillion won). This amount corresponds to about 7% of the UAE's gross domestic product (GDP) in 2018.

The Central Bank of the UAE announced, "In addition to additional funds to compensate for the damage caused by COVID-19, policy support measures such as new systems and regulations to help businesses and retailers have also been prepared." The Abu Dhabi government in the UAE also announced that from the 15th until the end of this month, popular attractions in Abu Dhabi such as the Louvre Museum and Ferrari World, as well as theme parks in Dubai including Legoland and Motiongate, will be temporarily closed.

Saudi Arabia also announced that it will inject 50 billion riyals (approximately 16.2 trillion won) to stimulate the economy. The Saudi Central Bank decided to provide 30 billion riyals to banks and financial companies that extend the loan repayment deadlines for small and medium-sized enterprises (SMEs). It will support 13.2 billion riyals in loans to SMEs through banks and operate a loan guarantee program worth 6 billion riyals for companies.

Egypt also announced that it will allocate 1,000 pounds to fight COVID-19.

Middle Eastern countries recently expect significant economic damage due to measures such as a decrease in tourists, school closures, and restrictions on public events caused by COVID-19. In the case of the UAE, visa issuance will be suspended to reduce the influx of foreigners. From the 15th, all entertainment facilities and movie theaters will be closed, and wedding banquets will also be prohibited. Additionally, from the 17th, all flights to and from Lebanon, Turkey, Syria, and Iraq will be suspended indefinitely.

As Saudi Arabia and Russia compete for market share in the global oil market, leading to a price collapse due to increased production, concerns about economic damage are growing even more among Middle Eastern countries.

This content was produced with the assistance of AI translation services.