Economy

Rise and shine – Dubai the city that never sleeps

July 15, 2020

Financial conditions have eased and according to IMF, the world economy could take the ladder if all the parties play their role right.

IMF reports that actions taken by central banks have boosted investor risk appetite. Policy rates in several countries have been cut further and investors expect interest rates to remain at very low levels for several years. Balance sheets of advanced economies’ monetary authorities have swelled following new rounds of asset purchases, liquidity support for the banking system, US dollar swap lines, and other facilities intended to sustain the flow of credit to the economy.

Patience in the game of who is though and who is tougher, may be the smartest way to maintain the right path out of the crisis.

Dubai is opening again, after what seems like an eternity for business owners. The 4th most visited touristic destination in the World, opened its doors to tourists Tuesday after nearly four months of closed borders and grounded flights, the latest in the desert city’s efforts to revive an economy slammed by the coronavirus pandemic and deflated oil prices.

The glittering commercial capital of the United Arab Emirates, known for its high-end hotels, balmy beaches and superlative attractions like the world’s largest mall and tallest building, is among the first Middle Eastern destinations to restart tourism. But it comes at a challenging time: air travel remains at multi-decade lows, many would-be travelers fear catching the virus, and the Gulf region’s infamous summer temperatures are hitting scorching levels of 35 to 40 degrees Celsius.

Dubai has one of the most diversified and non-oil dependent economies in the Gulf. It relies on sectors like banking, finance, technology, hospitality, tourism, entertainment, logistics, property and retail — all of which saw business plummet, not just in the emirate but the world over, as government-mandated lockdowns were imposed to stem the spread of the virus.

During Dubai’s strictest lockdown period in April, when all but essential businesses were shut and residents had to apply for police permits to leave their homes, 74% of local travel and tourism businesses surveyed by the Dubai Chamber of Commerce said they expected to go out of business in the next month.

Data is not publicly available as to how many tourism businesses have had to close permanently. But research firm STR Global estimated in May that some 30% of jobs in Dubai’s hotels alone would likely disappear over the summer months until demand rebounds.

Dubai sees its aggressive testing and sanitization campaign, from hotels and malls to airports, as playing a major role in its reopening. It was recently awarded a Safe Travel Certification from the World Travel and Tourism Council, and it plans to offer Covid-19 testing to every arrival that doesn’t provide a recent negative test result. Quarantine will only be required for those that test positive, though travelers will need health insurance covering the virus or risk bearing the costs of the quarantine. In terms of whether Dubai would bar visitors from high-risk countries, is something to be seen.

Nevertheless, we all know what Dubai is capable off, this city has been tested in multiple occasion and have proven to be resilient, bouncing off every time only to become better and stronger in face of adversity. The city has taken all precautionary measures in place across the city and are ready to shine again.

We live in a truly global world. Most commonly used products are sourced from all across the globe. However, when it involves investments, we frequently tend to confine ourselves within the geographic bounds of the country we’re native to, or that we’re presently in. This, however, is slowly changing; with people becoming familiar with investment options from all across the world. Investors all over the globe constantly seek opportunities to get involved with rapidly growing yet stable economies of countries like the UAE.

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