New oil find to fuel post-COVID-19 economy in UAE

Abu Dhabis discovery of new reserves puts the UAE in pole position for a quick recovery from the pandemic that has wreaked havoc on the global economy and markets. The new post-pandemic economy may be vastly different and the pace of growth may vary across markets but the UAE has the right tools and resources to be the first off the starting line.

This find ensures the country remains a competitive and innovative destination for the industrious global citizen, thanks to its visionary leaders and the right talent pool that is drawn from 200 nationalities.

While the UAE aims to be a stated leader in renewables in a decade, it is also playing to its strengths as an oil heavyweight with this discovery that brings it on par with Russias reserves. Oil wealth will ensure the country continues to spend on priority sectors and develops its economy for a technology-driven leap into the future that is less reliant on oil. A healthy mix of renewables and fossil fuels will power the new UAE economy that looks well-placed to influence the Middle East and the larger GCC region as it weathers the current health and economic storm unleashed by the coronavirus.

Most of the countrys oil reserves are in Abu Dhabi and, according to reports, the Supreme Petroleum Council has approved a record Dh448 billion capital expenditure plan for the Abu Dhabi National Oil Company for five years from 2021 to 2025. Smart growth could mean speedy recovery from the pandemic. There is a new drive that stems from a vision to be an early-mover to reap the benefits that could see a revival across sectors. It is indeed an ambitious plan, and Adnoc will pump Dh160 billion into the countrys economy over five years.

This will ensure that the countrys growth objectives are met and are on track. In fact, this discovery has come at an opportune moment for the UAE. Whats interesting is that sentiment also has been boosted with three vaccines from Moderna, Pfizer and Oxford proving to be 90 per cent effective in pushing back the disease. The UAEs bold plan comes when oil companies are wary of fresh investments with the pandemic still rife and widespread. The discovery of 22 billion stock barrels is positive news for the oil industry and the Opec. Theres a surge in optimism and it signals that oil is back and the UAE is leading the charge into a new era with endless possibilities.