Businesses set to capitalise on economic recovery in H2
Industry leaders see promising growth prospects as vaccine drive, stimulus plans and visa reforms restore investor, consumer confidence
DUBAI (July 10, 2021) — The UAE economic recovery will further strengthen in second half as the successful vaccine drive, stimulus plans, visa reforms and government policy actions to facilitate businesses have restored confidence in investors and consumers, experts say.
The leading corporate executives and industry leaders said non-oil sector will continue to drive economic recovery in the second half as the government successfully implemented policy measures to contain Covid-19 pandemic in the country. The UAE businesses have proved their resilience in the most challenging time and are now looking ahead for a promising future.
Sachin Gupta, general manager of Gulf Pinnacle Investments (GPI), the UAE subsidiary of Gulf Pinnacle Logistics, said economic activity is picking up and will gradually return to pre-Covid era in due course of time.
Referring to stimulus packages worth Dh7.1 billion announced by the Dubai government since the outbreak of Covid-19 pandemic, he said these stimulus plans played key role in reviving economic activity in the emirate.
“There are positive signs for recovery in the second half of the year as most of the economic activities have already been resumed. The outlook for most Middle Eastern economies looks positive in later part of the year, however keeping coronavirus levels low will be essential to ensure a sustainable recovery in coming month,” Gupta said.
Gulf Pinnacle Logistics is a logistics and transportation company. It is an ‘integrator’ of the highly fragmented mid sector market, encompassing four business models — freight-forwarding, warehousing, and courier services.
Reffering to latest data released by Central Bank of the UAE, Gupta said the country’s economy is expected to post 2.4 per cent and 3.8 per cent growth in 2021 and 2022, respectively.
“The economic recovery will get a boost when rest of the world opens up in coming months. Expo 2020 in Dubai, the 2022 FIFA World Cup in Qatar and an easing of tensions in the region will also support growth,” Gupta said.
Capitalise on growth opportunities
Najeeb Kabeer, partner and managing director of Century Express Courier Services, said the region’s economies are in a good position to capitalise on the emerging growth opportunities.
“Preparations are in full swing to give final touches to Expo 2020 Dubai in October. In addition to this tourist activity will pick up with the opening of international borders and increasing oil demand is also good omen for global economy,” Kabeer said.
Century Express Courier Services caters to the domestic and international markets through its own fleet and a network of agents delivering shipments to more than 195 countries. The company focuses on same-day and next-day express delivery services catering to the growing demand of priority shipments.
“The pandemic looks to be under control in the Gulf region as the governments rolled out an effective vaccine drive. The situation is also under control in China, Europe and the US and it will help resume international traffic in coming months,” Kabeer said.
Maritime trade set to rebound
Rodney Viegas, chief executive of Abdul Muhsen Shipping LLC and So Safe Logistics LLC, said global trade in general, and demand for maritime services in particular, are expected to stage quick rebound during the second half of the year.
Referring to future trade report released by Dubai Multi Commodities Centre, he said global economy showed a ‘surprised resilience’ in 2020 despite the Covid-19 pandemic crisis.
“Maritime trade is gaining momentum with every passing day as the demand picked up especially from the China, Europe and the US. This is a pisitive trend and the industry is confident of quick turnaround in second half of the year,” Viegas said.
Abdul Muhsen Shipping LLC was established in 1991 to provide shipping and warehousing services, focusing on import and export services mainly by sea through the Jebel Ali Port. The company has its head office in Dubai and the warehousing facility in Jebel Ali Free Zone.
“Dubai’s economy has proved its resilience once again after quick bounce back from surprised Covid shock last year. The emirate’s economy is on track to post 2.4 per cent GDP growth this year as the government announced timely measures to contain the pandemic,” Viegas said.