The Coronavirus or the COVID-19 has had a huge impact on the businesses worldwide, which has, in turn, affected the economies of the country drastically. There have been complete or partial lockdowns due to which people all around the world have not been able to work. There have been some people who do not have physical work, which is still continuing to work, but most of the people worldwide are unable to work.
The economies in the Middle East have been hit hard by the spread of the Coronavirus. The International Monetary Fund (IMF) has made a prediction stating that the economies of most of the Middle East jurisdiction will see a contraption. These effects on the economy can be traced back to the effect of the Coronavirus on three of the biggest sectors in the Middle East.
The Three Affected Sectors
The three affected sectors due to which there have been drastic effects on the economy of countries in the Middle East are
1.Oil and Gas Sector
If a person talks about the Middle East, the first picture that pops into our mind is Oil and Gas. The Middle East countries are one of the largest exporters of crude oil, but this export was very less due to the spread of Coronavirus and the lockdowns imposed by the countries.
Prices of crude oil fell as people were not moving around, and all kinds of transportation were stopped. The demand for crude prices fell so low that it reached almost one dollar per barrel. Now, as we know that Oil and Gas are the most exported goods in the middle east, and the revenue brought from it forms a major chunk for the economy.
The low demand for Crude Oil with the reluctance of people to travel is the major reason for the sump in the Middle East economy.
2.Travel and Tourism Sector
The Middle East countries have a rich historical and cultural heritage. People from all around the world used to come to see and learn about this heritage. Apart from this, the government was taking initiatives to hold global events such as the FIFA Football World Cup, which was scheduled to be held in 2021, and the World Expo, which was to be held in Dubai in 2020.
Many of the global events have been postponed until further notice, but the countries already were preparing for the huge number of footfalls that were going to come to the country. The economies in the Middle East have also been impacted by the virus, and even now, even after the world has started going back to normal, both the tourists and the companies that are arranging the travel must take special care of the health of the people.
3.The Capital Markets
The capital markets worldwide have been hugely affected by the Coronavirus. Capital markets all over the world have experienced extreme volatility as there has been lockdown for weeks and, in some cases, for months. People were not able to go to offices, and companies either stopped functioning or were functioning at minimal efficiency. This caused huge volatility in the capital markets.
The companies are facing huge difficulties during the time of the epidemic. All the companies must prepare themselves to tackle this pandemic as this virus will stay for a very long time. Below is a list of actions which a business can perform to stay ahead of the virus:
- Provide clear instructions to maintain social distancing in the premises. This will not only help the business to sustain itself but will also help save the lives of the people.
- Provide credible and factual information about the pandemic and help curb any wrong information as it may cause more harm than good.
- Provide health equipment such as sanitizers, face masks, PPE’s, etc. to the employees.
- Provide new and innovative services to the people. To know more about how the businesses should prepare themselves during these troubling times, Read our blog. “
If a company follows these points, it will surely sustain and flourish during these times. The companies should take the assistance of a third party, which will help a company during these times.
Looking for such a business that will provide you with sound financial advice and will also look after the economic aspect of the business? then Your search gets over here. JAXA Chartered Accountants will not only provide customized solutions to the problems faced by a business but will provide it at a competitive price. The experience of more than 13 years helps JAXA to provide the best quality services to its clients. For more details about the services provided to the clients, Contact Us. We will be happy to answer all your questions.
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