(Bloomberg) -- The economy of Dubai, the Middle East's business hub, will likely contract 6.2% this year, according to the emirate's media office. It's expected to see 4% growth in 2021.
Gross domestic product fell 10.8% in the first half of the year, estimates published on Wednesday showed. The economy is heavily dependent on tourism and retail, sectors especially hard hit by the pandemic.
The fallout this year is “within the expected range of economic contraction, given the massive global economic impact of the Covid-19 pandemic,” said Arif Al Muhairi, executive director of the Dubai Statistics Centre. “The critical priority placed on combating the pandemic and protecting public health and safety induced a widespread slowdown.”
In the United Arab Emirates, of which Dubai is a part, economic output is seen shrinking around 6% as well, with lower oil prices contributing heavily to the slump. Late on Tuesday, the emirate's government press office published the same growth forecasts but retracted them shortly after without explanation.
More from the statement:
- Allowing 100% foreign ownership in companies is seen attracting more investment
- Hotel and restaurant activity dropped an annual 35% during the first half of 2020
- Real-estate activity declined 3.7% in the same period
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