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In a report on Saturday, the agency maintained its previous forecast that Dubai’s economy would contract dramatically by about 11 percent in 2020.
In part, this is due to the UAE economy’s focus on travel and tourism, which are two of the industries hardest hit by COVID-19.
The tourism sector, very important for the emirate, suffered a severe blow from the strict restrictions imposed by Dubai on the entry of foreigners, before resuming the reception of tourists from July 7, amid a low participation for reasons of Health.
According to the report, the agency expects Dubai’s total public debt to reach 77 percent as a percentage of GDP in 2020, equivalent to 290 billion dirhams ($ 79 billion), compared to 61 percent in 2019.
The report continued: “The increase in the debt burden index is partly due to the sharp drop in gross domestic product due to the Corona fallout.”
The agency said the broader assessment of the public sector, including the debt of entities linked to the government, indicated a debt burden close to 148 percent of GDP.
She said: “In the event of financial difficulties, we expect Dubai to receive further financial support from the emirate of Abu Dhabi … Dubai’s economy will recover to 2019 levels by 2023.”
He noted that the large exposure to tourism and aviation puts it in a position more affected by the epidemic, as well as the broad impact of the fall in oil prices on the economies of the countries of the Gulf Cooperation Council, of which Dubai is one of them.
The Dubai government expects to post a historically large central government deficit of 12 billion dirhams ($ 3.27 billion), or 3.2 percent of GDP, this year, amid a 28 percent drop. in income.
