KHALEEJ TIMES, Monday, Jan 4, 2021 | Jamadi Al Awwal 20, 1442
Investors bet on Dubai's strong recovery in 2021
Emirates:
High net worth investors and analysts are betting on a strong recovery in
Dubai’s economy for 2021, led by strategic sectors such as retail,
hospitality, tourism, transport and logistics, and following the arrival of
Covid-19 vaccine, as well as a rebound in the global economy and reforms
announced during the pandemic.
They also appreciated the emirate’s handling of the Covid-19 pandemic and
measures taken to contain the pandemic which will expedite the economic recovery
and help achieve sustainable growth over short to medium term.
Egyptian billionaire Naguib Sawiris, chairman and CEO of Orascom Investment
Holding, is all praise for Dubai. He said that the world is flocking to the
emirate after its successful handling of the Covid-19 pandemic that led to the
opening up of the economy and return of tourists.
“The World is moving to Dubai ... cheers to Dubai,” said 66-year-old Sawiris,
who owns assets worth $3 billion. He is the highest-ranked foreign investor to
acknowledge that Dubai is rising fast in the post Covid-19 period.
Dubai Statistics Centre estimated that the emirate’s economy will expand four
per cent next year on the back of effective policy measures taken by the
emirate’s government that will drive increased investment inflows and job
creation in the coming years.
Dubai announced its 2021 budget on Sunday at an estimated expenditures of Dh57.1
billion.
London-based research consultancy has stated that Dubai stands out in the Middle
East for adopting protective measures to contain the pandemic and is one of the
major beneficiaries of the vaccine.
“Dubai, which stands to be among the biggest beneficiaries from a vaccine, has
received a shot in the arm with the news that tourists will flock to the Emirate
over the next month,” said Capital Economics.
Dubai began rolling out Covid-19 vaccines last week as the vaccination
programmes in other countries continue.
Reforms yielding
results
Khatija Haque, head of research and chief economist at Emirates NBD, said with
the global economy likely to rebound from the second quarter next year, the
outlook for Dubai’s transport, logistics and hospitality sectors looks brighter
as well.
Emirates NBD Research sees a three per cent GDP growth forecast for Dubai in
2021 for now.
“Dubai and the UAE have also implemented and approved a number of structural
reforms in 2020 which should start to yield some benefits in 2021, including
allowing foreign investors to own 100 per cent of onshore companies in some
sectors and new more flexible visa regulations. The new agreement with Israel
has already led to an estimated 50,000 visitors from there, which has helped to
offset the decline in visitor numbers from traditional markets,” she said.
“Finally, Dubai’s Expo2020 is set to go ahead from October 2021, which should
spur the recovery in tourism to the emirate in the second half of next year,”
Haque added.
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