An international poll shows bleak indicators for the UAE economy
A new poll showed bleak indicators of the UAE’s economy, amid an escalating government failure to confront the emerging coronavirus pandemic’s repercussions.
A quarterly survey conducted by Reuters, a global analyst, highlighted analysts’ views that the UAE economy is expected to grow at 2.2 per cent this year, compared to 2.7 per cent growth expected three months ago.
Last month, the UAE witnessed an increase in the average daily number of Covid-19 infections over seven days to nearly three times.
The total output of the UAE is expected to shrink 6.6 per cent last year, compared to the forecast for a 6 per cent decline released in October. It is expected to grow by 3.5 per cent in 2022.
Hotel occupancy and hospitality revenues in the UAE rose strongly last month, ending a challenging year for the sector in a better shape, but they are still below pre-pandemic levels.
Emirates NBD, Dubai’s largest bank, said in a research note: “With the end of the holiday season and the tightening of travel restrictions, it is unlikely that these high numbers of hotel occupancy and available room revenues will continue in the first quarter of 2021.”
He added that based on the rapid distribution of vaccines, expectations are more optimistic for the second half of 2021, especially in light of the launch of the Expo 2020 in October 2021, scheduled for last year and was postponed.
Gulf economic report said that the UAE’s debts rose to about one hundred billion dollars in light of the escalating financial crisis facing Abu Dhabi.
The Kuwaiti “Kamco Invest” (in particular) stated that the UAE is at the forefront of countries in terms of the value of debt instruments due to be paid until 2025.
The UAE’s debt stands at about $99.2 billion.
Economic collapse
According to the report, debts owed by Gulf governments are about $157.1 billion.
The companies owed the amount to $164.3 billion.
The report expected that the bonds’ value due for payment in the Gulf would reach 115.7 billion dollars during the period.
The report notes that the value of loans due for repayment during the next five years in the Gulf countries is almost at the same level as bonds and bonds due for reimbursement during the same period, reaching $299.3 billion.
UAE companies represent the largest share of the value of loans supposed to be repaid over the next five years, amounting to $131 billion.
According to the report, Gulf governments issued bonds worth $47.5 billion from the beginning of the year until November 2020, while bonds issuances amounted to about $ 28.7 billion.
The escalation of the economic downturn highlights the severity of the UAE crisis in light of the government’s failure to find solutions and the involvement of senior officials with corruption.
