Corona epidemic has badly affected the world economy. All most all the countries depending on the tourism and construction industry are still facing the devastating effects of the current pandemic situation. One of the top sufferers is the middle east countries.
Dubai’s economy is entirely dependent on tourism and luxury hospitality. The current economic condition of the UAE is still not stable at its normal level. The tourism industry has totally collapsed due to Covid 19 restrictions. Still, luxury hotels and tourist attraction places are not functional at their full boom. The roads are deserted and the construction sector is unable to manage their running projects.
Before the pandemic situation Dubai’s construction growth was 3.3% in 2019, was expected to surpass 4.3% in 2020. Unfortunately, still, economists still could not find the growth rise in construction of more than 1.9%.
The construction industry especially the building materials industry has been badly affected. Especially in the furniture industry, a sharp decline of about 80% has been seen in the export of medium-density fiberboard. Dubai’s board requirements are 100% dependent on imports. Moreover, a recent 50% increase in sea freight and an increase in international demand could put Dubai’s two largest distributors in a difficult situation. But we have very high expectations from Dubai’s government to provide a grant to support this sector and to overcome all the upcoming problems.
