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International Day for Tolerance

International Day for Tolerance

The International Day for Tolerance is an annual observance day declared by UNESCO in 1995 to generate public awareness of the dangers of intolerance. It is observed on 16 November.

International Day for Tolerance

“Tolerance is respect, acceptance and appreciation of the rich diversity of our world’s cultures, our forms of expression and ways of being human.” UNESCO’s 1995 Declaration of Principles on Tolerance.

In 1996, the UN General Assembly adopted Resolution 51/95 proclaiming 16 November as International Day for Tolerance.

International Day for Tolerance

This action followed the adoption of a Declaration of Principles on Tolerance by UNESCO’s Member States on 16 November 1995. Among other things, the Declaration affirms that tolerance is neither indulgence nor indifference. It is respect and appreciation of the rich variety of our world’s cultures, our forms of expression and ways of being human. Tolerance recognizes the universal human rights and fundamental freedoms of others. People are naturally diverse; only tolerance can ensure the survival of mixed communities in every region of the globe.

In 1995, to mark the United Nations Year for Tolerance and the 125th anniversary of the birth of Mahatma Gandhi, UNESCO created a prize for the promotion of tolerance and non-violence. The UNESCO-Madanjeet Singh Prize for the Promotion of Tolerance and Non-Violence rewards significant activities in the scientific, artistic, cultural or communication fields aimed at the promotion of a spirit of tolerance and non-violence. The creation of the Prize has been inspired by the ideals of UNESCO’s Constitution that proclaims that “peace, if it is not to fail, must be founded on the intellectual and moral solidarity of mankind”. The prize is awarded every two years on the International Day for Tolerance, 16 November. The Prize may be awarded to institutions, organizations or persons, who have contributed in a particularly meritorious and effective manner to tolerance and non-violence.

MESSAGE FROM THE DIRECTOR-GENERAL

International Day for Tolerance

“At a time when extremism and fanaticism are unleashed too often, at a time when the venom of hatred continues to poison a part of humanity, tolerance has never been more vital a virtue.”

 — Audrey Azoulay, Director-General of UNESCO
on the occasion of the International Day for Tolerance

Download the full message in PDF format
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WHAT DOES UNESCO FOR TOLERANCE

HOW CAN INTOLERANCE BE COUNTERED?

1. Fighting intolerance requires law:

Each Government is responsible for enforcing human rights laws, for banning and punishing hate crimes and discrimination against minorities, whether these are committed by State officials, private organizations or individuals. The State must also ensure equal access to courts, human rights commissioners or ombudsmen, so that people do not take justice into their own hands and resort to violence to settle their disputes.

2. Fighting intolerance requires education:

Laws are necessary but not sufficient for countering intolerance in individual attitudes. Intolerance is very often rooted in ignorance and fear: fear of the unknown, of the other, other cultures, nations, religions. Intolerance is also closely linked to an exaggerated sense of self-worth and pride, whether personal, national or religious. These notions are taught and learned at an early age. Therefore, greater emphasis needs to be placed on educating more and better. Greater efforts need to be made to teach children about tolerance and human rights, about other ways of life. Children should be encouraged at home and in school to be open-minded and curious.

Education is a life-long experience and does not begin or end in school. Endeavours to build tolerance through education will not succeed unless they reach all age groups, and take place everywhere: at home, in schools, in the workplace, in law-enforcement and legal training, and not least in entertainment and on the information highways.

3. Fighting intolerance requires access to information:

Intolerance is most dangerous when it is exploited to fulfil the political and territorial ambitions of an individual or groups of individuals. Hatemongers often begin by identifying the public’s tolerance threshold. They then develop fallacious arguments, lie with statistics and manipulate public opinion with misinformation and prejudice. The most efficient way to limit the influence of hatemongers is to develop policies that generate and promote press freedom and press pluralism, in order to allow the public to differentiate between facts and opinions.

4. Fighting intolerance requires individual awareness:

Intolerance in a society is the sum-total of the intolerance of its individual members. Bigotry, stereotyping, stigmatizing, insults and racial jokes are examples of individual expressions of intolerance to which some people are subjected daily. Intolerance breeds intolerance. It leaves its victims in pursuit of revenge. In order to fight intolerance individuals should become aware of the link between their behavior and the vicious cycle of mistrust and violence in society. Each one of us should begin by asking: am I a tolerant person? Do I stereotype people? Do I reject those who are different from me? Do I blame my problems on ‘them’?

5. Fighting intolerance requires local solutions:

Many people know that tomorrow’s problems will be increasingly global but few realize that solutions to global problems are mainly local, even individual. When confronted with an escalation of intolerance around us, we must not wait for governments and institutions to act alone. We are all part of the solution. We should not feel powerless for we actually posses an enormous capacity to wield power. Nonviolent action is a way of using that power-the power of people. The tools of nonviolent action-putting a group together to confront a problem, to organize a grassroots network, to demonstrate solidarity with victims of intolerance, to discredit hateful propaganda-are available to all those who want to put an end to intolerance, violence and hatred.

International Day for Tolerance

RESOURCES

How countries are raising debt to fight COVID and . . .

How countries are raising debt to fight COVID and . . .

How countries are raising debt to fight COVID and . . . why developing nations face tougher choices by Shamel Azmeh, Lecturer in International Development, Global Development Institute, University of Manchester is about the pandemic that is affecting all countries as described by the World Bank’s article as a heat-seeking missile speeding toward the most vulnerable in society. That metaphor applies not just to the vulnerable in the rich world; the vulnerable in the rest of the world is not more immune. 

The feature picture above is of the World Economic Forum‘s.

So here is :

How countries are raising debt to fight COVID and why developing nations face tougher choices

PM Boris Johnson (left) and Chancellor Rishi Sunak have come up with money to underwrite wages, rescue packages and meal vouchers during the pandemic. Jonathan Brady/PA Wire/PA Images

COVID continues to ravage societies around the world, and a key issue is how governments can afford to fight it. As economies are disrupted, governments are stepping in to increase their spending to bail out companies, pay the cost of health measures, and subsidise workers’ wages.

Before COVID, when people argued that the state should be able to offer free healthcare and free education, among other services, and welfare measures, a standard political response was that state resources were limited. Asked by a nurse in 2017 why her wages hadn’t increased from 2009 levels, then British prime minister, Theresa May, said: “There is no magic money tree that we can shake that suddenly provides for everything that people want.”

Except, a few years later, the government has not only been able to pay the wages of millions, it has also created rescue packages for thousands of firms and offered people vouchers to eat out in restaurants. A number of European countries have also taken the unprecedented step of underwriting the wages of millions of workers in response to the pandemic.

How is the British state and others capable of this radical increase in spending at a time when revenues from taxes are collapsing?

‘Magic money tree’

The answer to this lies in the debt market. Over the past few months, world governments have drastically increased their borrowing to cover the costs of the pandemic. It might appear logical that the cost of credit will go up during uncertain economic times. The reality, however, is that capital often goes to safer sovereign debt during economic downturns, particularly as the equity markets become unstable and volatile.

Over recent months, rather than struggling to find lenders or having to pay more for debt, the governments of the major economies have been awash with credit at historically low rates. In October, the EU, until now a small player in the debt market (as borrowing mostly is by national governments of member states), began a major borrowing campaign as part of the efforts to fight COVID through the SURE programme (Support to mitigate Unemployment Risks in an Emergency) which was created in May.

The first sale of bonds worth €17 billion was met with what some described as “outrageous demand”, with investors bidding a total of €233 billion to buy them. This intense competition was for bonds that offered a return of -0.26% over ten years, meaning that an investor who holds the bond to maturity will receive less than they paid today.

The EU is not the only borrower that is effectively being paid to borrow money. Many of the advanced economies have been in recent years and months selling debt at negative rates. For some countries, the shift has been dramatic. Even countries such as Spain, Italy and Greece that were previously seen as relatively risky borrowers, with Greece going through a major debt crisis, are now enjoying borrowing money at very low rates.

The reason for this phenomenon is that while these bonds are initially bought by “traditional” market actors, central banks are buying huge quantities of these bonds once they are circulated in the market. For a few years now, the European Central Bank (ECB) has been an active buyer of European government bonds – not directly from governments but from the secondary market (from investors who bought these bonds earlier). This ECB asset purchase programme was expanded to help weather the COVID crisis, with the ECB spending €676 billion on government bonds from the start of 2020 until September.

Other central banks in the major advanced economies are following the same strategy. Through these programmes, those central banks encourage investors to keep buying government bonds with the knowledge that the demand for those bonds in the secondary market will remain strong.

Poorer countries

Not everybody, however, enjoys a similar position in the debt market. While the rich economies are being chased by investors to take their money, the situation is radically different for poorer countries. Many poor countries have limited access to the credit market and rely instead on public lenders, such as the World Bank.

In recent years, this pattern began to change with a growing number of developing countries increasing their foreign borrowing from private lenders. Developing countries, however, are in a structurally weaker position than richer peers. The smaller scale of their capital markets mean that they are more reliant on external financing. This reliance means that developing countries rely on raising money in foreign currency, which increases the risk to their economies.

As many developing countries have less diversified exports with a higher percentage of commodities, the price decline in commodities in recent months has increased those risks. As a result, developing countries face a significantly higher cost of borrowing compared to the richer economies.

A few large developing countries, such as Indonesia, Colombia, India and the Philippines, have begun to follow the policy adopted by the advanced economies of buying government bonds to fund an expanding deficit. The risks of doing this, however, are higher than the richer economies, including a decline in capital inflows, capital flight and currency crises. A report by the rating agency S&P Global Ratings illustrated the differences between those two economies:

Advanced countries typically have deep domestic capital markets, strong public institutions (including independent central banks), low and stable inflation, and transparency and predictability in economic policies. These attributes allow their central banks to maintain large government bond holdings without losing investor confidence, creating fear of higher inflation, or triggering capital outflow. Conversely, sovereigns with less credible public institutions and less monetary, exchange rate and fiscal flexibility have less capacity to monetise fiscal deficits without running the risk of higher inflation. This may trigger large capital outflows, devaluing the currency and prompting domestic interest rates to rise, as seen in Argentina over parts of the past decade.

While the reaction of the market to this approach by developing countries has been muted so far, the report argued, this situation might change. Developing countries who do this could “weaken monetary flexibility and economic stability, which could increase the likelihood of sovereign rating downgrades”.

Ratings downgrades

Over recent months, downgrading by rating agencies have been a major risk facing developing countries with many economies facing higher costs of borrowing as a result of such downgrades. These downgrades were often linked to decline in prices and exports of commodities, as was the case for diamonds for Botswana and oil for Nigeria.

In July, following the participation of Ethiopia, Pakistan, Cameroon, Senegal and the Ivory Coast in a World Bank-endorsed G20 debt suspension initiative, the rating agency Moody’s took action against those countries arguing that participation in this scheme increased the risk for investors in bonds issued by these countries, leading to some developing economies avoiding the initiative in order not to send a “negative signal to the market”. Zambia is on the verge of being the first “COVID default” and other developing countries could face a similar situation in coming months.

As a result of these dynamics, many developing countries are facing the tough choice of giving up any economically costly health measures or facing serious fiscal and economic crises. Access to credit has become a defining factor in the ability of governments to respond to the pandemic. As a result of access to cheap credit, developed economies are so far able to take such health measures while limiting the social and economic impact of the pandemic. Many developing countries do not have this luxury. Not everyone gets to shake the branches of the magical money tree.

Shamel Azmeh, Lecturer in International Development, Global Development Institute, University of Manchester

The Conversation

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Dubai economy to contract by 11% this year

Dubai economy to contract by 11% this year

Dubai economy to contract by 11% this year: S&P as the international lockdown impacted international travel to and stay in the previously popular spots of the world. Dubai, for its particular regional specifics and as the most popular venue in the Gulf region, seems to endure the most critically the pandemic or all the safeguards against it.


Dubai’s economy will contract by around 11% in 2020, owing mainly to the Covid-19 impact on its travel and tourism industry, the sector most affected by the pandemic, according to an S&P Global Ratings report. 

Dubai economy to contract by 11% this year

As per S&P estimate, Dubai’s gross general government debt will reach about 77% of GDP in 2020.

Low oil prices have had broad effects on GCC economies, of which Dubai is one, but hydrocarbons directly contribute only about 1% to Dubai’s total GDP. 

The indirect effect of weaker demand from Dubai’s neighbours will dampen Dubai’s trade, tourism, and real estate markets, it stated.

Although Dubai’s economy is somewhat more diversified than that of most its regional peers, the report anticipates an economic contraction of around 11% of GDP in 2020, recovering to 2019 levels by 2023. 

STR Global, a data intelligence and benchmarking firm, reported Dubai’s hotel occupancy rate at 26% in June as inbound tourism sharply declined following global lockdowns and much-reduced air travel designed to curb the spread of Covid-19. 

The fact that fewer residents left Dubai during the hot summer months and instead spent more domestically to some extent has supported the economy. Local support for the economy cannot, however, offset the almost complete shutdown of inbound international tourism for most of 2020, and the likely slow recovery of the long-haul aviation that Dubai specializes in.

The Dubai government now expects to post a deficit of AED12 billion (3.2% of GDP) this year, largely owing to the reduction in economic activity and the consequent expected 28% decline in revenue, stated S&P Global Ratings. 

It also expects significant off-balance-sheet expenditure, resulting in the government’s net debt position worsening by more than what the headline deficit would imply, as has occurred in previous years.

S&P Global Ratings pointed out that the below-the-line expenditure which causes the variance between headline deficits and the change in net debt mostly involves support for Dubai’s government-related entities (GREs), an example of which is the recently disclosed AED7.3 billion (1.9% of GDP) already provided to national carrier Emirates in 2020. 

Support for GREs will likely be appreciably larger in 2020 than in the past, due to the broad cross-sector shock to Dubai’s economy, it added.

The ratings major said that in total, it expected new government bond issuance and loans to total around 7% of GDP in 2020. The government has issued AED8.4 billion (2.2% of GDP) of public debt so far in 2020, marking the biggest year for Dubai’s debt issuance since 2009. 

“This, in combination with recently disclosed new bilateral and syndicated facilities through June 2020 (facilities that have increased by AED15 billion (4% of GDP) since Dubai’s previous end-2018 disclosures) supports our estimation that 2020 will be another year where debt accumulation far exceeds the headline deficit,” it stated in the review.

TradeArabia News Service

The Levant and North Africa: on the verge of . . . .

The Levant and North Africa: on the verge of . . . .

An Analysis dated 7 August 2020 by Dr Tankut Oztas is concerned by The Levant and North Africa with a challenging statement like: on the verge of economic malaise?
The pandemic-induced crisis is expected to exacerbate poverty, deepen inequality and constrain households’ access to basic needs, including health service.

ANALYSIS – The Levant and North Africa: on the verge of economic malaise?

ISTANBUL:  The spread of COVID-19 undoubtedly has had a catastrophic impact on the most vulnerable communities of the world. According to a recent World Bank report, the Middle East and North Africa (MENA) region is ranked as second-lowest among all regions in the overall Global Health Security Index, and it comes last in terms of both epidemiology workforce and emergency preparedness and response planning. Without an effective and coordinated set of policies to achieve a swift economic recovery, the region is highly likely to suffer from greater political instabilities and become a breeding ground for terror groups.

The COVID-19 outbreak has exacerbated these pre-existing vulnerabilities and risks in the widely-mismanaged economies of the MENA, where medical systems are under-resourced and much-needed infrastructure either destroyed or lacking.

A range of harsh anti-COVID-19 measures such as self-isolation, social distancing, and lockdowns, including total curfews and international travel restrictions have been implemented by governments to control the spread of the virus and protect lives.

These preventive measures, however, led economies across the region to experience severe supply and demand shocks. The most recent regional economic outlook reports published by both the World Bank and the International Monetary Fund (IMF) forecast that regional economies would most likely experience a sharp economic fallout by –4.2 per cent and 4.7 per cent in 2020, respectively.

Still, the real socio-political and economic impact of the COVID-19 pandemic in the MENA remains highly uncertain and will strictly depend on the duration of the outbreak and the effectiveness of the policy responses developed by each nation.

The current predictions, however, suggest that all critical macroeconomic indicators such as fiscal and current account balances, foreign reserves, and the inflow of foreign direct investment will be distressed as a result of the crisis. The pandemic-induced crisis is expected to exacerbate poverty, deepen inequality and constrain households’ access to basic needs, including health services.

The economic repercussions of the COVID-19 pandemic effectively forced almost all countries in the region to request financial assistance from the IMF or other financial institutions to strengthen their economic position and prevent the possibility of a prolonged economic recession. As a result, regional economies have become heavily dependent on the reform directions of the IMF, World Bank, and other investment banks.

Socio-economic and political tensions remain a distinct possibility in the post-pandemic era if policy responses fail to meet the demands of the majority and set a path for swift economic recovery. Countries such as Lebanon, Jordan, Palestine, Egypt, and Tunisia already have debilitated capabilities. Persisting socio-political and economic hardship exacerbated by the COVID-19 pandemic may lead to a vicious cycle of economic malaise.

The same outcome applies to the only two oil-exporting countries of the region, Iraq and Algeria. Their economies were hit by the complete halt of economic activities due to the pandemic and have also been severely affected by the crash of oil prices. A similar assessment is applicable to war-torn countries of the region, Syria and Libya too. Though their economic outlook is linked to a sustainable political order and strong security environment, the spread of the virus and its humanitarian and economic costs are extra burdens on the wellbeing of communities living in these countries.

The only countries in the region with a relatively positive socio-political and financial outlook are Israel and Morocco. While their economies are experiencing the economic consequences of the pandemic, their macroeconomic variables are in a better position compared to their peers. Their public and externals debts are relatively lower in comparison to other nations in the region.

Nevertheless, every country will experience the heavy burden of issues such as collapsing global trade, low commodity prices, major capital outflows, and healthcare-specific challenges inflicted by the COVID-19 outbreak. The crisis is dealing a heavy blow on sectors such as tourism, export companies, and small and medium-sized businesses, which employ the largest share of the workforce and generate a considerable share of the revenue streams for the region’s economic development.

A reduction in income from these sectors, as well as remittances and foreign investment from the oil-rich Gulf countries, subsequently hampered the foreign reserves and deepened the current account deficit across the region as a whole.

Against this challenging backdrop, a range of economic recovery packages have been announced by the governments to mitigate the economic repercussions of the COVID-19. The majority of them are aimed at helping the most hard-hit sectors and communities through temporary tax relief, cash transfers or cheap financing.

The uncertainty about the real economic impact of the pandemic, however, has complicated the policy response. Many of these economies have limited fiscal and external debt capacities. The Lebanese government, for instance, has the highest external debt in the region with approximately 170 per cent of its GDP. Jordan, Tunisia, Egypt and Iraq follow Lebanon with external debts of 97, 90, 87.2 and 80 per cent of their GDP, respectively.

Ultimately, many of these economies had already been battling with high poverty, political instability, and poor healthcare infrastructure; hence the historic economic downturn provoked by the novel coronavirus will aggravate existing economic and humanitarian challenges. The region already has the world’s highest youth unemployment, and it hosts countries that have weak security institutions.

In the period that lies ahead, if the geostrategic vulnerabilities and risks continue to amplify across the region without a stable political leadership, effective civil service, and a well-targeted set of economic recovery programs, the region will likely experience a prolonged economic recession and an increased risk of social unrest.

[ The writer is a researcher at the TRT World Research Centre. He holds a PhD in International Political Economy from King’s College London and specializes in global security, geopolitical risks and the politics of transnational economic affairs ]

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UAE’s migrant workers fret over future

UAE’s migrant workers fret over future

UAE’s migrant workers fret over future in coronavirus economy; that is according to my reading, perhaps about their own future in the Gulf region, particularly in the UAE during and above all after the passing of the pandemic. It must be reminded that the United Arab Emirates (UAE) successfully launched its Mars mission dubbed “Al Amal”, or “Hope”, on July 20, 2020.

In the meantime, here is the original Reuters article that covers this traumatic period in the life of those numerous migrant workers in the UAE.


DUBAI (Reuters) – When Kapil left his Nepali village for an airport job packing cargo in the United Arab Emirates, he thought he was securing a future for himself and his family.

UAE's migrant workers fret over future
Unemployed men queue for food handouts from concerned local residents after they lost incomes due to the coronavirus disease (COVID-19) pandemic in Dubai, United Arab Emirates July 6, 2020. REUTERS/Lisa Barrington

But less than a year after arriving in the Middle East trade and tourism hub, he questions whether it was the right decision after learning there would be no work this month.

“I’m totally hopeless,” said 29-year-old Kapil, whose wife and five-year-old son are in Nepal.

The coronavirus crisis has taken a heavy toll on the economies of the oil-rich Gulf, heavily reliant on low-paid foreign workers.

They are the backbone of the Gulf economies, taking jobs in construction, services and transport, and are now facing the realities of the pandemic.

Reuters spoke to over 30 workers like Kapil in Dubai, Abu Dhabi and Sharjah, who all said they are now enduring hardship due to coronavirus.

Many have racked up debt and would go hungry without the help of charities as they wait for work and to be paid.

Some said they found little reason to stay without work and wanted to return to their home countries despite being owed months of wages; hundreds of thousands have already left.

The treatment of migrant workers in the Gulf has come under greater scrutiny, with human rights groups saying conditions have deteriorated because of the pandemic.

In the UAE, most attractive because of the economic opportunities it offers, there is no social safety net for foreigners, who make up about 90% of the population.

A laundry service worker from Cameroon told Reuters he had not been paid in months and was now selling fruit and vegetables on the street earning 30 to 40 dirhams a day ($8-$11).

The UAE government communication office did not respond to emailed questions about migrant worker welfare.

In May, the UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan said the Gulf state was committed to protecting the rights of all workers, state news agency WAM reported.

DEBTS

Those in blue collar jobs are the most vulnerable. They are paid low wages, work long hours and often live in cramped dormitories that have been coronavirus hotbeds.

Many also pay fees to recruiters in their home country, a practice common for low paying jobs in the Gulf.

Kapil, who said he paid a recruiter 175,000 Nepali rupees ($1,450) for his UAE job, is not sure when he will work again.

His employer told staff they would only be paid when they worked and it was unclear whether there would be any work next month, he said.

Kapil said he had been earning around $600 a month – six times more than his teacher salary in Nepal – working up to 12 hours a day, six days a week at the airport.

He said not working had left him stressed and unable to provide for his wife, child and elderly parents in Nepal.

Kapil, who showed his employment contract and other documents to Reuters, asked that his full name not be published and his employer not identified over fears he could face repercussions.

Arriving in the UAE last October, Kapil thought he would work at the airport for a few years before finding a better job, possibly using his teaching skills.Slideshow (4 Images)

Now he just hopes to work until the end of the year to pay back his loans.

“The global economy is getting worse and it’s affecting each and every business … I think during this time it’s hard to find any other job.”

UNPAID WAGES

No official statistics of how many people have left the UAE are available. But at least 200,000 workers, mostly from India but also from Pakistan, the Philippines and Nepal, have left, according to their diplomatic missions.

Sectors like construction and retail were struggling even before the crisis, which exacerbated hardship for workers already exposed to payment delays.

Mohammed Mubarak has not been paid for around 11 months for security work at a Dubai theme park.

“The company doesn’t know when they’ll be able to pay us, and we are suffering,” the Ghanaian said.

Government coronavirus restrictions that forced many businesses to shutter for weeks began to ease in May. Shopping centres, water parks, bars and restaurants – all staffed by migrant workers – are once again open, raising hopes.

Zulfiqar, a Pakistani in Dubai for 12 years, sent his family home early in the outbreak but stayed on hoping for work, sharing a room and what cash he has with a dozen other unemployed men.

“Things in Pakistan are also not good,” he said.

By Alexander CornwellLisa Barrington and Davide Barbuscia, Aziz El Yaakoubi; Editing by Giles Elgood

People used Mobile Phones for Online Deliveries

People used Mobile Phones for Online Deliveries

Latest PwC (PricewaterhouseCoopers) survey reveals 53% of people used mobile phones for online deliveries. It is reported by Arabian Business saying that Covid-19 sparks increased demand for cashless transactions in Middle East. It should not come as a surprise since the MENA was confirmed to stand at a reasonably good level with digital skills.

Monday 20 July 2020,

The survey revealed that 53 percent of people were using smartphones for online deliveries and over 90 percent said they would continue to do so even once the virus has gone.

The Covid-19 pandemic has accelerated moves towards a cashless society in the Middle East, according to the latest Global Consumer Insight Survey from PwC.

The survey revealed that 53 percent of people were using smartphones for online deliveries and over 90 percent said they would continue to do so even once the virus has gone.

Norma Taki, PwC Middle East’s consumer markets leader, told Arabian Business the shift towards cashless transactions had already been gathering pace in the last three years.

She said: “The first time we talked about a cashless economy and we talked about mobile payments, I would say was about three years ago and the Middle East consumer was nowhere close to that. At that point we were still talking about cash-on-delivery and credit cards online.

“But last year it jumped to about 45 percent. That increased now because of Covid because people were shopping online and I see this continuing going forward given that Covid will prove that we need this even more.”

The annual survey concentrates on 29 countries. In terms of the Middle East, it focuses on 1,000 people across the UAE, Saudi Arabia and Egypt. This year, as a result of the Covid-19 pandemic, a pulse survey was also conducted in May, involving 500 people in Abu Dhabi, Dubai, Riyadh, Jeddah and Cairo.

According to the results, almost 70 percent of people in the Middle East have experienced a loss of income as a result of redundancy or salary reduction. However, at the same time, 49 percent of respondents revealed that they have seen an increase in household bills.

Bigger basket size

In terms of shopping, people were spending more on groceries and entertainment and media, and less on clothes and footwear and restaurants and deliveries.

Taki said: “What we noticed from our survey was that people were shopping less, but had bigger basket size, from a grocery perspective.”

She added that the current health crisis could force the region’s shopping malls into a rethink regarding their future offerings.

“I can’t predict what the future of shopping malls is but I do think the trends that we saw before will be accelerated, which are you now have a wider, more diverse consumer base shopping online, so how do you bridge the offline and online experience is even more critical,” she said.

“I think the store will be where you experience the product and online is maybe where you will transact. The mall could be more of a showroom and that would mean changing the store format.”

The survey also found that 75 percent of respondents were using social media more, 71 percent using WhatsApp and other messaging apps more; and 54 percent using video chat apps more.

Nine out of ten consumers said they were likely to continue to use social media to the same extent after Covid-19 is over.