Expo 2020 Dubai, which begins on October 1, is set to be an important driver for the non-oil economy. “The global event is expected to lift travel and tourism, which accounts for up to 16 per cent of GDP in the UAE, both directly and indirectly through its impact on the supply chain and the spending it supports,’ Oxford Economics analysts wrote in the Middle East Economic Insight report for the third quarter of 2021.
Hotel occupancy rates have also recovered, supported by a rise in ‘staycations’ and visitor numbers rising by nearly 40 per cent in 2021 – after dropping by two-thirds in 2020. However, they are unlikely to return to pre-pandemic levels until 2023, according to ICAEW, which has commissioned the report.
The report said the outlook for the UAE’s economic recovery is brightening with the overall GDP projected to grow 1.7 per cent this year and 6.5 per cent in 2022.
The non-oil GDP, however, is predicted to grow at a faster pace — by 3.8 per cent this year and 4.1 per cent next year.
“Following the UAE’s record GDP fall of 6.1 per cent in 2020, the outlook for recovery in the rest of 2021 is promising, due to expansionary government policies. These include the Dubai 2040 plan and Abu Dhabi’s cultural investment drive, which are driving the non-oil rebound,” said the report.
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)
