Dubai’s economy will not return to its previous levels before 2023

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The “Standard & Poor’s Global Credit Ratings” agency said that the echo of the shocks of the year 2020 will continue to echo in the economy of the emirate Dubai, And it will not return to pre-pandemic levels Corona Before 2023.
The agency added in a report, on Monday, the pace of recovery Economic It will be slow in Dubai, given the huge effects on the economy due to the pandemic.
According to the report, Dubai witnessed the sharpest decline in population in the Gulf region, with a decrease of 8.4%, compared to an average decline of 4% in the whole region.
The report expects the GDP to recover during 2021 from the sharp decline caused by the pandemic and the drop in oil prices over the past year.
He stated that the main sectors in Dubai, specifically real estate, tourism, hospitality and retail, will be under pressure during the next 12-24 months.
The tourism sector, which is very important to the emirate, was dealt a major blow due to the tight restrictions taken by Dubai on the entry of foreigners, before it resumed receiving tourists from July 7, amid a slow recovery due to health concerns and the emergence of new strains of the virus.

The report pointed to the continuing operational challenges of the real estate sector in Dubai, and it is expected that the results of the sector last year will be weak, with only a slight improvement in the current year. The report expected that the profitability of real estate companies will remain under pressure and debt is high, which leads to the reduction and cancellation of dividends to preserve cash or liquidate assets to reduce debt.

(Anatolia)





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