The agency maintained, in a report, on Saturday, its previous forecast that Dubai’s economy would contract sharply by 11% in 2020.
This is partly due to the focus of the emirate’s economy on travel and tourism, which are two of the industries worst hit by COVID-19.
The tourism sector, which is very important to the emirate, was dealt a major blow due to the strict restrictions imposed by Dubai on the entry of foreigners, before it resumed receiving tourists from July 7. Amid low turnout; Because of health concerns.
According to the report, the agency expects Dubai’s total public government debt to reach 77% as a percentage of GDP in 2020, equivalent to 290 billion dirhams ($ 79 billion), compared to 61% in 2019.
The report continued: “The increase in the debt burden ratio is partly due to the sharp decline in gross domestic product due to the repercussions of Corona.”
The agency said that the broader assessment of the public sector, including the debt of government-related entities, indicated a debt burden closer to 148% of GDP.
She said, “In the event of financial distress, we expect Dubai to receive more financial support from the emirate of Abu Dhabi … Dubai’s economy will recover to 2019 levels by 2023.”
She pointed out that the great exposure to tourism and aviation puts it in a position more affected by the epidemic, as well as the broad impact of the decline in oil prices on the economies of the Gulf Cooperation Council countries, of which Dubai is one.
The Dubai government expects to record a historically large central government deficit of 12 billion dirhams ($ 3.27 billion), or 3.2% of GDP this year, amid falling revenues by 28%.
(Anatolia)
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