The UAE is preparing a significant support package for the tourism sector as it grapples with a deepening impact from the Iran war, the Minister for Economy and Tourism said.
"The most important at the moment is the tourism industry, which comes under huge pressure. It's an important aspect when we look at the challenges," Abdulla bin Touq told Dubai Eye radio's Business Breakfast show on Monday.
"We are supporting the tourism sector, we are speaking to them daily. We do have a package that will come up very soon that will really address the tourism issues and the challenges that they are facing."
The UAE continues to face attacks by Iran, which claims it is retaliating for strikes by the US and Israel. Sectors such as tourism, hospitality and aviation have experienced a slowdown since the start of the war, as airspace closures and flight disruption persist.
In Dubai, the government approved a Dh1 billion ($272.2 million) support package for the emirate's business sector that took effect on April 1.
It defers payment for a group of government fees for three months, including the collection of hotel sales fees and the Tourism Dirham fee to support the hospitality sector.
"What we see as well is that the UAE can really go back quickly and fast, and rebound from such situations. We have a very strong infrastructure in tourism," Mr bin Touq said.
Price caps
The minister also stressed that prices of essential goods in the UAE are being monitored by the government to avoid any inflationary moves by retailers.
"All the retailers, for instance, when it comes to food and beverages, cannot really increase any price without coming and actually submitting on the ministry website, [and] we haven't approved any price increase," he said. "So there's a cap now."
He also urged consumers to buy groceries from the major outlets since there is more control, and asked them to avoid stockpiling.
"We have a good structure of supply chain happening. And I think that's something in which the UAE is very strong," he said.
Looking ahead, Mr bin Touq said the UAE's economy is resilient and can make a quick rebound from the war.
"The UAE is strong, a 40-day conflict will not determine the future of the UAE economy," he said, adding that the country will "bounce back".
