The streets of the emirate are crowded and it is difficult to find a "taxi"

«Bloomberg»: Dubai's economy is recovering rapidly .. and Europe is returning to closure

Bloomberg News Agency broadcast a report in which it dealt with the recovery of Dubai's economy from the effects of the repercussions of the Corona virus pandemic, and the arrival of real estate sales in the emirate to its highest level in 10 years, and non-oil commercial activity jumped to its highest level in two years in October.

The report attributed the rapid recovery to the “Expo 2020 Dubai” exhibition, the well-equipped health system, as well as the emirate’s success in avoiding the “Delta” wave of the pandemic, and other factors.

economy recovery

The report said: With the high rates of infection with the Corona virus "Covid 19" in Europe, and governments tightening restrictions again, Dubai's economy is recovering faster than expected.

Real estate sales are at their highest level in 10 years, the streets are clogged with traffic, and it is difficult to find a vacant taxi.

«Expo 2020 Dubai»

One of the world's largest events, Expo 2020 has attracted large numbers of Dubai residents, as well as visitors to the emirate fleeing new closures that have sparked unrest in Austria, the Netherlands and other European countries.

The UAE has so far avoided a new wave of the "Covid 19" pandemic, at a time when about 90% of its population has been fully vaccinated, and reinforcements are being provided to individuals at high risk.

In turn, the economy has been open for months, but new cases of infection have remained below 100 per day, since last October;

While deaths are rare, thanks to its well-equipped health system.

quick recovery

"The recovery has been faster than we expected, and the (Expo) has played a role in that, as has the success of it," said Scott Livermore, chief economist at Oxford Economics Middle East in Dubai, who raised his growth forecast by about a percentage point to 5% for 2021. Dubai to avoid a (delta) wave of the pandemic, which allowed the local economy to return to normal.

And “Bloomberg” continued: “It is a far cry from last year, when the Dubai government, like many governments around the world, closed the city, to stop the spread of the epidemic.

Even when things started to open up, people were reluctant to go outside amid strict social distancing rules, with many restaurants opting for home delivery to stay afloat, while others closed the doors.

Because of its heavy reliance on tourism, Dubai's economy has contracted over the past year.

And Emirates Airlines suspended flights, at a time when the busiest international airport, Dubai International Airport, calmed down.

movement height

Bloomberg added, "The demand for restaurants, cafes, shopping centers and cinemas began to rise at the end of September, according to mobility data from (Google), and the pace of growth has increased since the opening of the Expo."

For its part, preliminary data showed that hotel occupancy rates in October amounted to approximately 82%.

This is a 60% increase from last year, and about 6% above comparison levels for 2019, according to data from research firm STR Global.

Non-oil business activity jumped to a two-year high in October, buoyed by optimism about Expo, according to the IHS Markit Purchasing Managers' Index.

Oil and Hospitality

“For the first time in a long time since at least 2015, there is a strong sense of comfort in the Dubai hospitality market,” said Philip Waller, Middle East and Africa director for research at STR Global.

The reason for the recovery is partly due to the rise in oil prices, whose rises and flows are strongly affected by the real estate market in Dubai, which is another major factor contributing to the recovery of the economy.

In addition, housing prices rose this year at the fastest pace since 2015, as the volume of transactions rose by 77%, in August, compared to the previous year, and 56% from the levels of 2019. Dubai eased restrictions last winter, with high levels of vaccination, which Attracting tourists to avoid lockdowns in their own countries, and enjoy the winter sun.

Translation: Makki Maamari

"Bloomberg"

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