You are currently viewing How is Dubai Coping with Covid-19?

How is Dubai Coping with Covid-19?


Covid-19 has truly had a disruptive impact on the global economy. While the situation has been trending in a more positive path over the past few weeks, there is still a lot of work to be done, and still plenty of caution that needs to be exercised. 


Now that the tides are turning, however, many businesses are wondering about how Dubai intends to kickstart its economy and rebound from the significant impact of Covid-19 in the second half of the year. Let’s find out. 


The good news is that while there is currently a resurgence in infections in other business hubs such as the United States, experts currently agree that few signs are present that may signal a similar resurgence in Dubai. However, it’s important to keep in mind that while this outlook may seem positive for businesses in the short term, infections abroad could continue to put a damper on trade and tourism in the region. Additionally, population is expected to contract in the months to come as a portion of the expat population returns home, something that could have a negative effect both on businesses and the economy. 


Moreover, as furloughs and lay-offs remain in place, there is going to be a lengthy period of reduced consumer spending and demand abroad, something that could hinder the profitability of local businesses who engage in international commerce and trade. Due to these compounding factors, Covid-19 will, unfortunately, continue to play a role in Dubai’s economy for the foreseeable future.


With foreign demand speculated to remain low, a major focus of the UAE’s post-Covid economy has been on the gradual reopening of key local businesses. Chief among them is tourism. Having trained hotel staffs, testing key personnel and implementing health and safety protocols across chains, the UAE is offering a safe getaway to individuals looking for an escape after months of quarantine and self-isolation. 


Additionally, important retail sectors of the economy have already resumed operations. From gyms to movie theatres, local businesses are going to be key to Dubai’s economic recovery strategy, even if they’re forced to operate at a limited capacity. Moreover, restrictions placed on vulnerable sectors of the population further reduce the risk of Covid for the general population, something that encourages individuals to go out, work and spend money. 


Finally, and perhaps most importantly, Dubai’s high-tech infrastructure has enabled businesses to resume their day-to-day activities without risking the safety and well-being of their employees. Continued investment into a telecommunications infrastructure that is already world-class will not only help businesses continue to drive growth in the region but also ensure that the impacts of similar economic disruptions in the future can be mitigated.  


Few events in recent memory have disrupted business like we’ve seen with the spread of the coronavirus. With approximately one-fifth of businesses in the region stating that downsizing, redundancies and unpaid leave are likely results of the long-lasting measures to combat the virus, prolonged economic contraction is almost a certainty.

While reduced consumer demand will be something that most business will be forced to cope with, Dubai, as a whole, presents itself as an attractive destination for businesses to ride out the virus. With a high-tech infrastructure that facilitates telecommuting, a commitment to protecting the most vulnerable members of the population and the implementation of strict safety measures to act as a responsible destination for tourists, Dubai has expertly positioned itself to rebound swiftly from the impacts of Covid-19.  


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