UAE Records Positive Economic & Commercial Activities – 2021
UAE has started seeing positive signs of economic recovery from May 2021 onwards recording a strong growth since the start of the pandemic. It has also recorded a solid recovery of key sectors that support the national economy. Some of the key sectors are expected to witness growing demand in the forthcoming months. Statistics from the Federal Competitiveness and Statistics Centre (FCSC) reported increases in price indexes covering seven major sectors that constitute the UAE’s Consumer Price Index (CPI). The CPI for the culture and entertainment sector led this category with its index points rising to 106.36 (CPI) in May 2021, compared to 103.68 (CPI) in April 2021.
UAE Key Sector Growth
The Clothing and Footwear segment within the UAEs retail sector recorded the second-largest growth in CPI to 115.02 points in May compared to 114.03 points during the same reporting period in April 2021. Similarly, the food and beverage segment recorded 107.57 (CPI) in May compared to 106.82 (CPI) in April (2021). The other goods and services sector rose to 115.75 (CPI) from 114.77 (CPI) for the same time period.
The Hotel, Restaurants & Catering (HORECA) segment within the Food Sector raised to 115.85 (CPI) in May 2021 from 115.09 (CPI) in April 2021 while the Healthcare sector increased to 106.31 (CPI) from 106.17 (CPI) and the Transport & Services sector reached 110.80 (CPI), from 110.33 (CPI).
Real Estate Sector Growth
The Dubai property market has started gaining momentum and has seen significant growth over the past few months. A total of 2,020 real estate and properties transactions were valued at AED 4.5 billion (USD 1.25 billion) in total during the first week of May 2021, according to a report published by Dubai Land Department (DLD). The DLD weekly report mentioned that among the 2,020 properties that were sold, 119 were plots with a total value estimated at AED 845 million (USD 230 million), while 1,321 were apartments and villas which were sold for AED 2.25 billion (USD 600 million).
Investment Opportunities in UAE & Dubai
The Dubai government has implemented stringent preventive measures and accelerated the vaccination rate to increase the recovery from the Covid-19 pandemic. The recovery plan that focuses on Dubai’s success in combating the Covid-19 pandemic and starting the recovery phase in record time showcased the government’s commitment towards providing the best environment in the world, reinforcing Dubai’s competitiveness as a global destination for investment over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all sectors. The FDI (Foreign Direct Investors) are also actively investing in the retail and real estate sectors, reflecting the investors’ confidence in the government’s commitment to provide an effective environment for the businesses to grow. With the upcoming EXPO 2020 in October this year, Dubai is expected to be a major investment destination in the Post Covid-19 situation.
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