The United Arab Emirates announced on Saturday that it will merge its insurance authority under the supervision of the central bank while transferring some of the powers of the country’s stock market regulator in a bid to help boost the economy’s competitiveness.
The Securities and Commodities Authority will witness the handover of its operational and executive powers to local stock exchanges, according to the tweets of Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Vice President of the State.
Sheikh Mohammed, who is also the ruler of Dubai, added that the responsibilities of the Securities and Commodities Authority will be limited to regulating and supervising local financial markets.
The move aims to raise the efficiency of the insurance sector and increase the competitiveness of their local financial markets, giving them greater flexibility, adding that their government will remain flexible, supportive, and fast in making appropriate economic decisions.
It comes as the UAE’s economic fortunes attempt to rebound from the impact of low oil prices and the coronavirus pandemic.
The UAE central bank said last month that this year the economy is likely to suffer a deeper contraction than initially expected, weighed by disruptions mainly caused by the epidemic.
His Highness Sheikh Mohammed bin Rashid Al Maktoum launches a project to form the UAE 50 years and said that the GDP will shrink by 5.2% in 2020 compared to a previous forecast of a 3.6% decline.
GDP in the Arab world’s second-largest economy dropped an estimated 7.8% last quarter after a 0.8% contraction in the prior three months, it said.
The forecast is slightly worse than the forecast compiled by Blomberg, which is down 5.1% this year. According to the International Monetary Fund, the UAE economy last contracted by more than 5% in 2009.