UAE – Mubasher: Dubai is the most affected emirate in the UAE from the negative economic growth caused by the coronavirus (COVID-19) outbreak, according to Moody's Investors Service.
A recent report by Moody's said that the serious consequences of COVID-19 for the global economy and trade have a negative impact on the UAE's economic growth.
The report explained that Dubai's government-related entity (GRE) debt has the most exposure to COVID-19's risks since its economy mainly relies on the real estate, tourism, and transportation sectors.
Before the COVID-19 pandemic, the UAE's non-oil economy has been slowed down due to several cyclical and structural factors, which would be aggravated by the COVID-19.
Moody's Analyst and the report's author, Thaddeus Best, said: "While we expect the majority of sovereigns that we rate to suffer a severe GDP contraction from the coronavirus outbreak, the UAE is particularly exposed to the economic implications of containment actions and the broader global economic shock."
Best added: "Travel restrictions, social distancing measures, and the closure of schools, factories, and businesses as well as a fall in global demand, pose substantial challenges to non-oil sectors like tourism, trade and real estate which account for over a third of the UAE's total GDP and just under half of non-oil GDP, and an even greater share of Dubai's economy."
