UAE economy is expected to grow much faster this year than the last few years
Expo 2020 is supposed to be the “world’s greatest show”. Residents of the UAE have been curious about this mega event.
According to the tweet of Sheikh Mohammed Bin Rashid Al Maktoum, the Expo 2020 will bring the world together. Also, this is supposed to lead the world towards a better future. Besides, this is going to be the best Expo of the world ever.
As well as these, he has said that the Expo will be an unparalleled opportunity for the UAE residents. This is because they will get the chance to be part of a global event which is bigger that themselves.
Expo 2020 will bring enormous benefits for the UAE. For instance, it will result in a boost to hotels, restaurants and retail of Dubai during this mega event that is excellent. However, there will be more to such a successful mega event.
The Expo will shape the Dubai of the future. For example, Dubai will turn into a unique place that biking to work is a norm.
There are high hopes in the UAE for businesses in the year 2020. Expo 2020 is expected to boost tourism and investment sectors in the country, according to HIS Markit.
David Owen, economist at IHS Markit, has said that businesses expect 2020 to be a better year, in comparison to the last few years. In fact, greater tourism and investment in the UAE’s economy is predicted. Also, it may have an impact on hiring activity in the country.
Dubai Expo 2020 will run from October 20, 2020 to April 10, 2021. The grand event is predicted to attract 25 million visitors. In addition, it is expected to generate business activity – mainly for hospitality, tourism, real estate as well as other sectors – worth billions of dirhams for the private sectors. Hence, the UAE economy is estimated to grow much faster compared to the last few years.
Purchasing activity has showed a rise for the first time in three months. Firms have related this to a depletion of input stocks and higher new orders, though the overall rise in input buying was only brief.
With job numbers rising fast in the last months, the trend for employment remained subdued.
The HIS Markit UAE PMI slightly dropped from 50.3 to 50.2 in December the previous month. The rate of improvement in business conditions was modest. Besides, it was of the slowest growth in the last decade.
However, according to purchasing manufacturing index (PMI) data, output growth was the weakest in December 2019 during the last eight years. Selling charges continued to decrease last month, putting much pressure on margins. Strong competitive pressure in the sector was subject to blame by the firms. This is because it has led them to offer discounts in order to retail customers.
However, the rate of inflation was relatively low and there was little change to staff costs in the UAE.