Dubai’s economy rebounds, reaches 98% of pre-pandemic levels: Fitch Ratings  

Dubai’s economy rebounds, reaches 98% of pre-pandemic levels: Fitch Ratings  

RIYADH: The retail, transportation and storage sectors have been the engine behind Dubai’s economic recovery, enabling the city to regain 98 percent of its pre-pandemic size, according to a report from research firm BMI.

Despite the city’s strong resurgence, BMI anticipates a deceleration in Dubai’s gross domestic product growth from an estimated 4.2 percent in 2022 to 3.4 percent in 2023 as the result of softer oil prices.

In spite of this impending slowdown, growth projections remain optimistic as GDP rates are expected to surpass the average of 3.1 percent recorded between 2015 and 2019.

“We believe that the ongoing rebound in the emirate’s key sectors, which have yet to fully recover from the pandemic, will keep growth above the historical trend in 2023,” the report stated.

BMI expects a slower growth pace in sectors including accommodation and food services, and foresees a mere 10 percent increase in tourist arrivals to the UAE in 2023 after a robust 55 percent surge in 2022.

Despite a minor shortfall of 4 percent compared to pre-pandemic levels, Dubai’s tourism sector delivered a strong performance in April 2023, attracting 6.02 million visitors in the first four months of the year, marking an 18 percent year-on-year increase.

According to Emirates NBD