Dubai, the business hub of the world, is on the verge of financial crunch, says Dubai Chamber survey. As per the report, 70% business of the Emirate State might shut down within 6 months. Thousands of CEOs from various segments like hospitality, tourism, entertainment, logistics and property were surveyed. As per their opinion, both small and big enterprises are under the risk.
Dubai, the most powerful business hub in the Gulf, is not an oil-dependent economy. Home to the world’s best hotel restaurant chains, high-value real estate trade, entertainment and shopping, Dubai is struggling to retain two out of three businesses. Bad news for the Malayali community as well.
The Dubai Chamber of Commerce held the survey from April 16 to 22, a time when strict Lockdown was imposed. The report says that the kind of economic slowdown and business loss awaiting the Dubai business community would be bigger than the Greater Economic Crisis in the Middle East that affected Dubai, too. Half of the restaurants and hotels surveyed may halt operations by next month. The travel and tourism sector is also deeply affected. Three out of four companies in this sector are on the brink of closure. The logistics, transport and storage companies are also in the process of being shut down, the Chamber report says. For Dubai, which has over two and a half million active business companies, main business sectors’ revenue will be impacted by COVID-19 and Lockdown. Indian expats, employees and entrepreneurs form the nerve of Dubai’s population of 33 Lakh. One and a half lakh Indians have registered to return in May as business sectors stagnate in the lockdown.
The global business scenario is also not in a better situation. The only option for entrepreneurs is to be cautious and take advantage of small opportunities.