The Middle East Economy

With coronavirus containment measures providing a significant boost to online payments and e-commerce around the world, the pandemic appears to be accelerating the transition towards cashless transactions in emerging markets.

Covid-19, along with the related disruptions to the movement of goods and people, has compounded the challenges facing globalisation. With the breakdown of supply chains leading to concerns over the provision of key goods during the crisis, some emerging markets had moved towards regionalisation in an effort to share risks.

The onset of a coronavirus-induced global recession has affected both labour markets and financial flows across the world. At the confluence of these two are remittances, which have increasingly been among the top contributors to GDP in many emerging markets over recent decades.

Oman acted quickly to limit the spread of the virus. A range of measures were implemented, including travel restrictions on international flights and internal public transportation services, the closure of all schools, universities, malls and non-essential shops, and the suspension of prayers at mosques.

Kuwait’s experience of Middle East Respiratory Syndrome, a strain of coronavirus that first emerged in 2012, has stood it in good stead to respond effectively to the current Covid-19 pandemic.