Dubai: Dubai has successfully navigated the pandemic-related headwinds, said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.
In a series of tweets, Sheikh Hamdan projected emirate's economy to grow by 3.1 per cent this year and rising to 3.4 per cent in 2022.
“Dubai has overcome the pandemic's global shockwaves, thanks to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai's directives & foresight. The city's economy is forecast to grow 3.1 per cent this year, & 3.4 per cent in 2022. Our vision for the future has embraced key global partnerships & the dynamic energy of our national talents," tweeted Sheikh Hamdan.
“Dubai's position as a global economic capital has been supported by clear goals, flexibility and speed in responding to changes, as well as consistent legislative development. We have created an attractive investment environment for creative energies who match our ambitious path,” Sheikh Hamdan added.
Following the leadership’s directives, Department of Economic Development made efforts to mitigate the pandemic’s impact on businesses by facilitating transaction procedures and commercial licenses.
“Dubai’s economy is now firmly on the recovery path and supported by increasing business and consumer confidence,” said Sami Al Qamzi, Director General of Dubai Economy. “This includes in particular business activities that were most negatively impacted by the pandemic such as tourism and transport.”
In 2020, Dubai’s output was below its existing production capacity similarly to elsewhere in the world.
Al-Qamzi recalled the five consecutive stimulus packages that the Government of Dubai launched as support measures:
- Suspension and reduction of various fees
- Reduction of customs duties
- Water and electricity bills
- Postponing rent payment
- Cancelling fines
These packages came on top of economic support measures launched by the UAE Federal Government, including the ‘Targeted Economic Support Scheme’ that the Central Bank of the UAE launched in March 2020 to ease the financial burden on firms and help many of them to avoid bankruptcy.
Dh 7.1btotal financial cost of the five packages, or 1.6% of Dubai's GDP.
DED forecasts Dubai’s GDP to grow by 3.1 per cent in 2021, given the significant recovery beginning in Q2. Accommodation and food service sectors are expected to grow by 8.5 per cent in 2021, compared to 2020.
The wholesale and retail trade sector is also expected to achieve a growth of 4.7 per cent in 2021, while construction activity is likely to decline in 2021 by 2 per cent due to a decline in construction related to infrastructure.
Al Qamzi pointed out that growth is expected to accelerate in 2022 and reach 3.4 per cent, driven by the continuous recovery of activities.