Data from the Dubai Statistics Center revealed that Dubai’s economy has contracted by 10.9% year-on-year in 2020. But growth this year has bounced back, with data for the first quarter of this year showing an 11% increase from the previous quarter. Emirates NBD forecasted a 4% growth for the emirate this year. As for UAE, it predicted ‘whole UAE GDP growth of 1.9% this year from -6.1% previously.’
With surging rates of global travel and one of the fastest vaccination campaigns globally, the UAE is well-positioned to see increasing tourism numbers during the fourth quarter, when warm weather and relaxed Covid restrictions are expected to draw travellers. Dubai is banking on its six-month mega-event, Expo 2020, delayed by a year due to the pandemic, to be a significant tourism draw.
“We expect a rebound in annual GDP growth from Q2 2021 off last year’s low annual base. However, global restrictions on travel likely weighed on Dubai’s recovery in both Q2 and to a lesser extent in Q3,” analysts at Dubai-based bank Emirates NBD said. But “these travel restrictions have eased in recent weeks. We expect growth to accelerate in Q4,” the bank said.
