DUBAI (Reuters) – Japan’s Mitsubishi UFG Financial Group said that Dubai’s economy is expected to contract by 5.2 Dubai’s economy percent this year due to the impact of the Coronavirus pandemic, but the Middle East Trade and Tourism Center may witness a rebound in growth to record 4.3 percent per year. Next.
The bank added in a report that while the vital economic sectors in the emirate were hit hard by the global health crisis, the indicators predict a return to normal economic activity.
The IHS Market Purchasing Managers’ Index, adjusted for seasonal factors, rose to 51.7 in July from 50.0 in June, the highest reading since December of last year, indicating improved conditions for companies.
“Dubai has been more exposed to the Coronavirus crisis than other regional economies, as more than a third of its economy – wholesale and retail trade, transportation, entertainment and hospitality – is clearly vulnerable to physical distancing measures and travel restrictions,” said Ihsan Khoman, head of Middle East and North Africa Research and Strategies at the bank.
But he added that the wealth of the federal government of the United Arab Emirates protected it from the crisis and that Dubai’s diversified economy made it quickly recover.
“We expect Dubai’s economy to contract by 5.2 percent in 2020, but next year’s recovery will be strong at 4.3 percent as foreign demand recovers and the postponed Dubai Expo is likely to attract large numbers of tourists,” he said.
Dubai was preparing to increase income and economic activity from hosting the exhibition during the current year, but it was decided to postpone it for a year due to the pandemic.
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Do what you are passionate about (this is the only way to cope with failure and tough times)
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Find mentors and lead by example
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You can sincerely do so
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