Dubai (UAE) – The coronavirus pandemic and containment measures have negatively affected global economic growth beyond anything experienced in nearly a 100 years. The Economy of Dubai, though considered diverse and non –oil-dependent heavily relies on sectors like travel & tourism, entertainment, logistics, hospitality, property and retail. Amid the current economic downturn, as GDP contracted by 3.5% in the first quarter, businesses in Dubai, as elsewhere across the world, have been struggling to survive by reducing salaries and downsizing employees.
By the first week of June, lockdown restrictions started to ease in most countries. Parks and restaurants are allowed to welcome people, tourists’ attractions are opening, and airlines began coming back to their usual schedule. For Dubai, the travel and tourism market has been a vital sector. In 2017, it was estimated that the sector added over USD 43.3 billion to the countries’ GDP (12.1% of GDP), and provided more than 600,000 jobs.
Dubai reopened for international tourists on July 7th and its non-oil sector finally experience a little expansion for the first time since February 2020 when the coronavirus pandemic toppled travel and commerce. According to IHS Markit, Dubai Purchasing Managers’ Index crossed the 50 mark and touched 51.7 in July, marking the first signs of recovery after dipping to its lowest in April.
Sales and demand conditions are expected to rise as restrictions are lifted, international flights began to operate again, and foreign visitors are entering the country as tourist venues reopened. Though the recovery is being considered as a sign of post-COVID revival, a strong economic rebound is still a long way to go. The government of Dubai has launched “The Great Economic Reset Programme” which is a part it’s “COVID Exit initiative” in order to initiate the state’s economic revival.