KHALEEJ TIMES, Tuesday, Jan 12, 2021 | Jamadi Al Awwal 28, 1442
Vaccine to give Dubai growth a major fillip
Emirates:
Dubai Economy expects a 4.0 per cent growth in consumption and demand
levels in the emirate in 2021 following the rollout of the free and
extensive Covid-19 vaccination campaign.
The bullish forecast is based on recent data on aviation and tourism and
Google’s daily data on the mobility of individuals across malls, restaurants and
other entertainment facilities in the emirate.
Recent data on the tourism and aviation sector revealed that Dubai’s airport
remained the busiest globally in passenger movement in December.
The growth projection given by Dubai Economy for 2021 far exceeds the overall
1.3 per cent growth forecast of made by the International Monetary Fund for the
UAE. The World Bank, on the other hand, revised slightly downward its economic
growth forecast for the UAE to 2.4 per cent in 2022, hinting the recovery would
be subdued after a contraction of 6.3 per cent in 2020 and a 1.0 per cent surge
projected for this year.
According to the IMF, the Arab world’s second largest economy could shrink by
6.6 per cent in 2020.
The Supreme Committee of Crisis and Disaster Management in Dubai had announced
the launch of the vaccination campaign earlier, and Dubai Health Authority
stated that the vaccination process would take place across several stages,
beginning with the most vulnerable groups (until the end of March 2021),
including the elderly, frontline workers in public and private sectors, and
those working in other vital occupations. The second phase will begin in April
and will target all community members, including Dubai citizens and residents,
with the goal of vaccinating 70 per cent of the emirate’s population (community
immunity level) by the end of 2021.
The vaccination campaign represents an important step towards the return to
normal life and economic recovery across various sectors economic activities
affected by the precautionary measures, particularly labour-intensive
activities, Dubai economy said in a statement.
The key sectors where Covid-19 had a major impact comprise residency services,
restaurants, and conferences and exhibitions. Dubai had organised over 140
exhibitions and events that witnessed the participation of more than two million
people in 2019, it said.
The arts and entertainment sector is also expected to witness a remarkable
recovery in the months ahead, especially in terms of activities and facilities
that had been affected by physical distancing, such as parties, museum,
theatres, cinemas, and various sports activities. Retailing is also expected to
gain momentum as a result of the confidence brought in by the vaccine and
increase of footfall across shopping centres. The return to normal life is also
expected to lead to a reduction in remote working and learning, which will give
additional impetus to economic recovery, said Dubai economy.
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