The Middle East

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.

With the coronavirus pandemic leading to the closure of restaurants and bars, so-called cloud kitchens have emerged as a food and beverage (F&B) alternative, as the hospitality industry adapts to shifting consumer demand.

Extensive fiscal measures have been in put in place across the GCC, with a view to offsetting the impact of the coronavirus on individuals, businesses and the broader economy. Measures have primarily been aimed at stimulating economic activity in the private sector and supporting entities that are struggling to manage their cashflows and tax compliance.

While immediate results suggest the automotive industry is set for a considerable contraction this year, there are some indications that social distancing concerns could actually lead to a spike in future car sales. 

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.

With the coronavirus pandemic causing the closure of national borders and the suspension of international travel, governments in emerging markets have begun to explore whether domestic tourism can kick-start their economies.