Dubai sees best business activity in 2 years

During the first three months of this year, Dubai recorded 1 per cent quarter-on-quarter growth, which signaled the start of the recovery phase. Business conditions saw the sharpest improvement in two years last month, spurred by a rebound in new orders and increased tourism as Expo 2020 got under way.

The hosting of the six-month Expo 2020 global trade fair, which began in October, has spurred economic activity this year and laid foundations for even faster growth momentum.

Dubai-based firms' confidence in future output improved sharply in October, as the strong rebound in sales gave companies increased optimism that the economy would quickly recover from the Covid-19 pandemic.

More than three in four companies in Dubai expect Expo 2020 to benefit their business in the fourth quarter of 2021, according to a survey by the Dubai Chamber of Commerce and Industry.

Business confidence in the emirate reached its third-highest level in 10 years as companies begin to feel the positive impact of the world's fair that began on October 1, the Business Leaders’ Outlook for Q4 2021 survey said.

The recovery in tourism as flights resumed was a key factor behind the upturn, as visitor numbers surged amid the opening of the Expo 2020 in October 1, according to the companies surveyed.

Growth accelerated across key sectors of Dubai's economy, including construction, travel, tourism and wholesale and retail, according to the survey.

Hotels in Dubai recorded a surge in occupancy rates in September, boosted by the easing of travel restrictions and the countdown to Expo 2020 in October. The average occupancy rate rose to 67.2 per cent in September, jumping 51 per cent compared to the same month in 2020.

The retail and wholesale sector recorded the biggest rise from September and construction firms continued to see the strongest overall speed of recovery.

Exports achieved significant growth of 25 per cent, reaching Dh50.5bn, and the value of imports increased by 9 per cent to Dh204.8bn, while the value of re-exports increased by 5.5 per cent to Dh99bn.

Dubai's leadership took decisive measures to ease the repercussions of global challenges on the emirate's economy and those efforts were supplemented by new legislation and amendments to the investment and residence laws in the country.