The UAE Announces Additional Stimulus to Keep Its Economy Afloat

Following the collective AED 126 billion stimulus packages launched in March 2020, the United Arab Emirates (UAE) has unveiled an additional fund to increase its total stimulus to AED 256 billion. With the additional stimulus announced, the Central Bank of the UAE (CB) aims to ensure liquidity in UAE’s banking sector.

Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation, stated that the decision to allow more liquidity in the UAE’s banking sector would provide further stability in these uncertain situations while allowing banks to offer further support to critical sectors of the economy.

The CB also amended the reserve requirement for demand deposits of all banks f...