The Central Bank of the United Arab Emirates introduced $70 billion emergency economic stimulus package to support its domestic economy to fight consequences of the coronavirus pandemic
Moreover, the bank reduced state expenditures in half to current 7%. Together with other implemented measures, the economy will receive around $70 billion, which is double the value of stimulus package approved last month.
Apart from reducing reserves, which adds $16 billion to the domestic economy, the government enabled providing liquidity to the private sector through collateral loans. UAE Central Bank aims to support stock exchanges by liquidity.
Most of the newly approved measures aim to pump liquidity to markets. As an example, clients can ask banks for deferring loan payments until the end of 2021. More than 1,500 infected by coronavirus were reported in UAE by the end of the week and 10 Covid-19 victims were announced.