- July 19, 2021
- Posted by: Waqas Siddiqui
- Category: Business & Economy
UAE Economic Activities to Recover in 2021
Industry experts forecast that the UAE economic recovery will strengthen further in the second half of 2021, primarily because of the successful vaccination drive, economic stimulus plans, visa reforms and other government policies to facilitate the growth of business in UAE. The non-oil sector will continue to drive economic recovery as the government successfully implemented measures to contain Covid-19 pandemic in the country. As a result, the UAE based businesses, investors and consumers have regained their confidence and are now looking ahead for a promising future.
The economic activities are improving and are expected to reach pre-Covid 19 conditions in the next six months. The AED 7.1 billion (USD 2 billion) stimulus package that was announced by the Dubai government since the outbreak of Covid-19 pandemic played a key role in reviving economic activity in the Emirate. According to the data published by the Central Bank of UAE, the country’s economy is expected to see a growth of 2.4% and 3.8% in 2021 and 2022, respectively.
UAE Business Growth Opportunities
Apart from UAE, the outlook for most Middle Eastern countries also looks positive in the second half of 2021, however the economic growth and sustainable recovery in the coming month in the Middle East region will depend on controlling and keeping the coronavirus levels low. Key events such as EXPO 2020 in Dubai and 2022 FIFA world cup in Qatar will play a vital role in reviving the economy of the Middle East.
The region’s economies are in an ideal position to capitalise on the emerging growth opportunities. Dubai is preparing itself in full swing to give final touches to EXPO 2020 which is to happen in October 2021. In addition the tourist activities are also expected to pick up with the opening of international borders. The increasing oil demand also provides a positive sign for the revival of the global economy. The controlled situations of Covid-19 pandemic in China, Europe and the US will help resume international traffic in coming months and positively contribute to the development of UAE’s economy.
Investment Opportunities in Dubai & UAE
UAE’s economy was resilient and bounced back strongly from the Covid -19 pandemic last year. UAE’s economy is on track to post 2.4% GDP growth in 2021 because of the timely measures to contain the pandemic. The government implemented stringent preventive measures and accelerated the vaccination rate to increase the recovery from the Covid-19 pandemic. It has also increased the investor and consumer confidence and Dubai is expected to attract fresh investments into all sectors, especially Food & Beverage (F&B), Real Estate & Construction, Healthcare, Renewable Energy, e-Commerce and Service Innovation. The foreign investors are also actively investing in the retail and maritime sectors, reflecting their confidence in the UAE economy to provide an effective environment for the businesses to grow.
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