Coronavirus? A term with whom everyone can relate to it. It has increasingly spread throughout the world and at the same time has caused great concern and fear in public. Discussing of the symptoms and how does it spreads has been quite a topic everywhere but have you ever given a thought to the question that what affect does it has on the economies all around the world? Let me enlighten you.
The COVID’19 pandemic in UAE is the part of the worldwide pandemic of COVID’19. It is true to say that Dubai was the first country in the Middle East to report a confirmed case. The first patient, a 73 year old woman was recovered from COVID’19 and released on 9th February but later 2 death were confirmed on 20th March. The following week, Dubai started a sterilization campaign. Night curfew was imposed the same month and certain significant measures were taken for the students living in Middle East.
Covid-19 has wreaked havor all over the world. Investors are alarmed that the spread of coronavirus will demolish the economy and government action may not be enough to stop the decline. In response, central banks in many countries especially UK has reduced interest rate and this will make borrowing cheaper and allow spending to boost and flourish economy.
As far as social effects are concerned, UAE is an organised and technological advanced society. Hopefully, the measures taken to counteract COVID’19 will succeed in atleast slowing it’s spread.
Therefore UAE is threatened by growing economic crisis even after events cancellation, flights being grounded and investments haulted. Dubai however faces billions of dollars in looming debt repayments with the massive 30.6 billion dollar bill coming by 2023 according to London based Capital Economies.
It is true to say that Gulf Economies can have impact when oil prices, tourism and capital markets are hit by COVID’19. Most importantly, many Middle East nations heavily rely on oil revenues and Saudi Arabia and UAE will see a major hit to tourism if the virus affects the pilgrimage season and Expo 2020 Dubai respectively.