Billionaires, analysts say reforms announced in 2020 will yield results in 2021
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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