30 January, 2021
UAE Economic Recovery 2021
All of countries around the world are facing severe economic problems due to COVID-19 epidemic.
The UAE, as other GCC nations, confronted strongly lower than anticipated oil income in 2020 and in addition to that the effect of the Covid-19 on the non-oil areas.
The UAE economy is shrunk by -6.9% in 2020 as both in oil and non-oil area sector as per Emirates NBD. Oil production costs were mandatory as worldwide lockdowns in the second quarter of 2020 prompted a breakdown in the global demand for oil.
The most affected was transport, logistics, retail and hospitality sectors as border were closed and the volume of global trade declined by 10%.
Tourism was additionally seriously affected by line terminations and different limitations on development in the second quarter of 2020 and the area has been delayed to recuperate.
One silver coating for the UAE’s movement and the travel industry area was the marking of the Abraham Accords normalizing relations with Israel in September 2020, which opened up another market. The development in guest numbers from Israel in the most recent month of 2020 assisted with counterbalancing lower guest numbers from a portion of the UAE’s more conventional source markets.
Border closure and other restrictions seriously affected the tourism and it’s been slowly recovering. One good thing that happened was signing the Abraham accords which helped to normalize relations with Israel in September 2020 which assisted to offset lower visitor numbers as visitors from Israel started to enter UAE.
The firmer oil prices, low interest rates, weaker US dollar may should help support the domestic recovery. There’s a chance that tourism can be boosted in the latter part of the year due to the Expo 202 which was postponed to October 2021 due to COVID-19. 3.5% of growth from non-oil sectors is expected this year even though GDP growth will be slower at 1.9%.
The spending on wages, subsidies and investment widely helped the UAE bring its economy on the path of resurrection.