Private sector business activities have surged in most nations of the world since the outbreak of the Coronavirus pandemic in 2020. Things have brightened up presently, though its progress and growth are slow. The private sector activities have increased, especially in places like the UAE. Besides the oil-related sectors, the region has experienced a quiet but good pace of economic growth since the last quarter of 2021.
Kavan Choksi – Businesses and the economic recovery in 2022
Kavan Choksi is an eminent businessman. He is fond of photography, business, and technology. According to him, companies in the UAE and some significant parts of the world enjoy the advantages of an economic recovery this year.
However, most businesses in the region have curbed the creation of new jobs to check the pressures of inflation. In 2021, January did see an increase in employment. However, it reduced in December due to the Omicron infected cases causing the economic growth to slow down again across the world.
Keeping business costs in check in the post-pandemic era
Companies in the UAE are facing a solid input for price pressure since inflation reached its peak in March 2021. Raw material costs have increased, and global transportation costs are on the surge because of bottlenecks in the supply chain. This increase in expenses placed further pressure on the profit margins, even with reduced output costs to boost sales.
The tourism sector and its recovery in 2022
The Omicron wave is shorter than its previous variants of the Coronavirus. It is anticipated that the travel and tourism sector can gradually recoup its momentum in the forthcoming months if infections are controlled. However, businesses still need to counter specific additional challenges resulting from the intense inflationary pressures, problems in the global supply chains, and another potential dip in business activities.
The fate of new business ventures since 2020
New business ventures and activities have witnessed a decline for the first time since 2020. The Omicron variant cases have led customers and companies to embrace a cautious approach. However, a positive point surfaced- inflation costs were moderate during this phase. Some businesses managed to expand their operations, while others are still cautious in taking such a step.
New business orders have been impacted severely
Business orders faced an adverse impact, and the creation of new jobs was affected as well last year. The sales from exports have reduced since March 2020. High costs for transport and shipping across the globe were to blame. The employment market stayed subdued for a long time, and the data collected reflected a weak hiring momentum for the past ten months.
According to Kavan Choksi, the shortage in staff increased to a rise in COVID-19 cases, but this did not affect businesses to reduce their backlogs at the fastest rates since July 2020. In his opinion, this is a positive development.
The non-oil sectors in the UAE regions became stronger after January 2020. Recovery from the global pandemic led to better business growth and renewed stabilization of the worldwide market.