Dubai’s Economy Shrank by 3.5% in Q1 Amid Coronavirus Pandemic

The government media office in UAE said in a statement issued on Tuesday that Dubai’s real GDP decreased by 3.5% in Q1 year-on-year as the country was hit by the Covid-19 pandemic, according to Reuters.

The government said some sectors such as real estate and finance have maintained their strength despite the effects of Covid-19

Dubai’s GDP reached 407.2 billion dirhams ($ 110.87) in 2019, recording an increase of 2.2% year-on-year, the statement said. The accommodation and food services sector – hotels and restaurants – decreased by 14.8% in Q1 on an annual basis. Trade, transport, and Storage activities decreased by 7.5% year-on-year.

The Dubai government has stated that it will allow visitors to enter the country from July 7th; this comes after months of strict measures to limit the spread of the COVID 19.

The real estate sector in Dubai posted a growth of 3.7% in Q1, while insurance and financing activities increased by 0.3%.