What are COVID19 IMPACT and global challenges?
COVID19 impact and its outbreak have been the biggest challenge faced by the global economy since the Recession of 2008. COVID19 impact on business in the UAE and across the globe in all sectors. This pandemic has broken supply chains, decimated tourism and aviation sectors as well as wiping out at least USD 17 trillion from Stock Markets Worldwide. Throw into this mix, the already plunging oil prices and we have the recipe for a global recession and an economic catastrophe.
To mitigate COVID19 IMPACT, the governments of the world have come together to face this massive challenge. Leading the charge in the United Arab Emirates has put forward measures that will not only control this spiral of the economy but also help not only large corporations struggling with this situation but also the small and medium business owners which form the backbone of every Economy.
COVID19 IMPACT ASSESSMENT
Recently a poll was held wherein 77 percent of the CFO’s of the UAE Market considered that COVID19 IMPACT would cause a significant restructuring in their business.
The primary concern for them was that the Revenue stream will be considerably hit.
CFOs looking to cut costs are most likely to consider cost containment and deferral or cancelation of investments, particularly on capital expenditure. From those in the region, this is especially true for the UAE (92%)
Investments in digital transformation, customer experience, and cybersecurity are most likely to be protected, and, as a result of COVID-19 IMPACT, 55% of CFOs expect to make changes to their supply chain.
Despite their concerns, a majority of CFOs in the Middle East believe that if COVID-19 IMPACT were to end immediately, their company could get back to ‘business as usual’ within three months.
The measures implemented by the UAE Government in light of COVID19 IMPACT control measures are:
GLOBAL ECONOMIC RISKS |
EMERGING OPPORTUNITIES IN THE UAE |
• With the increased Health, Political and Social Unrest in the Western World, people in the Western World are looking into it which countries have managed this Global Economic Risks in an organized and smart way with the minimum impact on People Health, Disruption in Businesses and Security of the Society as a Whole.
• In the Post COVID-19 World, there are significant possibilities that investment and businesses will shift towards secure and safe economies, which will provide: • Modernized health facilities • Political Stability • Public Security and Administration
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• Fortunately, UAE has all the modernized systems which the World is Looking for In the Post COVID-19 pandemic World such as:
• Modernized Health Facilities • Smart Public security administration infrastructure • Dubai is one the top of the list in terms of readily transformable to a Digitized Smart City • Dubai has the smart and digitized infrastructure and has the surplus capacity to attract hundreds of thousands of investors for new emerging businesses and investments • In the post-COVID-19 era, an enormous shift will likely to seen from the Western World to the economies with readily available smart infrastructure facilities.
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PRE-COVID19 BUSINESS MODEL |
POST-COVID19 BUSINESS MODEL |
• Hierarchical business structure
• Structural supply chain management systems • Structural business processes • High fixed overheads • Traditional performance analysis measures • Least investment in digital infrastructure |
• Smart Business Structures with a blend of
• Inhouse core staff in core activities • Outsourcing of support services • Sub-contracting/ Joint Venture arrangements • Smart Supply Chain System such as F2C (Factory to consumer) • Re-engineering and automation of business processes • Least fixed overhead costs • Modernized performance analysis measures • High investment in digital infrastructure
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