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Expo 2020 Dubai a driver for UAE economy
Dubai Economy
Analysis \ Dubai Expo 2020
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Analysis
Tom Hardy The mega event will lead to foreign investment opportunities, economic diversification and provide a timely boost to tourism and hospitality
After being postponed by a year due to the coronavirus pandemic, the Dubai Expo 2020 is scheduled to start on October 1st and conclude on March 31st, 2022. It is estimated that nearly 25 million visitors will attend the Expo this year. Held every five years, the Dubai Expo allows countries to showcase their latest developments in fields such as architecture and technology. Around 200 participants are expected to be part of the Expo which includes nations, multilateral organisations, local and foreign businesses as well as educational institutions from across the globe.
Reem Al Hashimy, director-general of the Dubai Expo 2020 said that despite travel restrictions due to Covid-19, Dubai Expo 2020 is expected to be a success and hit pre-pandemic numbers. He said that the world has gone through these galactical shifts over the last year but now with vaccines being rollout. He believes that the situation will settle by October and be far more positive by then.
The pandemic proved to be disastrous for the UAE economy as well, as it shrank 6.1 percent in 2020 as a result of the coronavirus pandemic and the dip in demand for crude, according to the Federal Competitiveness and Statistics Centre. It was further revealed that the non-oil economy in the UAE also shrank by 6.2 percent during the period. However, economic growth is expected to return in 2021 as economic activities are resumed across the globe.
Even though the event was postponed by a year, the government decided to still call it Dubai Expo 2020. According to the UAE government, it will be the largest event ever to have happened in the Middle East. It brings in foreign investment opportunities worth $100 to $150 billion, economic diversification, provides a timely boost to tourism and hospitality and also boosts the real estate sector in the region.
Dubai Expo 2020 a key economic driver
With borders sealed and people advised to stay indoors, the UAE economy took a beating in 2020. The oil price war and the slump in demand for crude added to UAE’s miseries. The postponement of Expo 2020 did not help either. However, Expo 2020 is finally happening and it is expected to be a major economic driver. The event is
Dubai Economy
UAE GDP GROWTH
2016 3%
2017 0.8%
2018 2.9%
2019 3.7%
2020 -3.5%
2021 3.3%
Source: Statista arguably the biggest to be held in the Arab world and it comes at a time when the whole world is battling a global recession.
According to the Dubai Statistic Centre, its economy declined by 10.8 percent in the first half of 2020, however, the economy is forecast to grow by 4 percent in 2021. Along with stimulus packages, the government did announce reforms to attract investment and help businesses in the region grow. This resulted in the International Monetary Fund upgrading the growth outlook for the UAE to 3.1 percent for the current year.
The government is also hoping that the World Expo will help revive the economy. Dubai is gearing to welcome nearly 25 million new visitors to the emirates despite the pandemic. This highlights the massive potential of the expo and what it could mean for the economy. Besides attracting millions of visitors, the mega event will also provide a stimulus for development which will lead to an increase in economic activities in the region.
Dubai won the rights to host the prestigious event in 2013 and since then, considerable investments have been made throughout the emirate. We have already seen big infrastructure projects undertaken as a result of the expo. It is to note that the event offers historical significance to the UAE as it is the first large-scale international event to be hosted in the Middle East and North Africa (MENA) region.
The expo has already resulted in many developers fast-tracking their redevelopment and expansion projects. To
Analysis \ Dubai Expo 2020
accommodate the huge influx of tourists, new hotels were built. The hospitality and real estate industries are expected to benefit from the expo which will ultimately lead to job creation.
Expo 2020 Dubai expected to drive real estate demand
Another sector that is expected to see a big impetus is the real estate sector. Dubai’s real estate has been depressed for quite some time due to an oversupply in the market. However, as a result of Expo 2020, Dubai has made significant investments in real estate projects. One of the major benefits of hosting such a mega event is investments in real estate. Expos in the past have drastically changed the host nations, and the same is being predicted for Dubai. According to an E&Y report, Expo will create nearly 49,700 full-time jobs this year and contribute around Dh122.6 billion to the Dubai economy.
Tourists flying in for the expo are sure to be attracted to what the real estate sector in Dubai has to offer. The overall socio-political stability offered by the UAE combined with the world class modern infrastructure along with sociopolitical stability makes Dubai a great place to invest in.
In 2020, rents and property prices in Dubai declined which resulted in record transactions in the market property market in Dubai. In the fourth quarter of 2020, we saw a massive decline in the off-plan segment, however, the secondary market moved in an upward trajectory. As a result, many projects slowed down. Now, developers in Dubai and the UAE are hoping for positive growth as a result of Expo 2020.
According to a report by Dubai Chambers, business conditions in Dubai is forecast to see a positive change in the third quarter of 2021 as confidence in companies and investors return once again. Also, according to an analysis by S&P, offices are reopening and the staff are returning to their workplaces in Dubai quicker compared to the financial hubs across the globe. Due to the pandemic, rentals and sale of office spaces took a severe hit as companies adopted work from home policies, however, as things return to normal, that is expected to change.
As a result of the pandemic, the e-commerce and logistics enterprises have boomed not only in the UAE but in most markets across the globe. This has resulted in an increase in warehouses and storage demand. The pandemic has also forced many businesses to go online and obtaining an e-trade licence in the emirate is not a difficult task. Also, Expo 2020 is likely to create a large number of job openings for residents across few sectors including hospitality, architecture, service sectors and infrastructure development.
It is without a doubt that the much-anticipated Expo 2020 is going to give Dubai’s real estate sector a significant boost. A lot of investors are willing to have their base in UAE, as the rules and infrastructure are promising fascinations as any other major city in the world. The Dubai Expo 2020 and other factors such as flexibility in loan repayment, visa terms for investors will lead to the rise of Dubai’s real estate market. The policy reforms undertaken to create a business-friendly environment in the region by the government will also play an important role to drag investors back to the emirate. The World Expo 2020 is expected to have a positive and far-reaching
MENA REGION: GROSS DOMESTIC PRODUCT (GDP) IN 2020
Saudi Arabia 701.47 bn
Iran 635.72 bn
Israel
402.64 bn
Egypt
361.85 bn
UAE 354.28 bn
Iraq 172.12 bn
Qatar
146.09 bn
Oman 63.19 bn
Jordan
43.38 bn
Source: Statista
Dubai Economy
impact on Dubai’s real estate market.
Over the last couple of months, we have witnessed that real estate prices have gradually started to pick up once again. Experts are hoping this will result in real estate developers in the UAE undertaking construction activities. A lot has been done by the government over the years to make expats feel welcome in the emirate and build confidence, which will lead to them investing their money in the emirate.
Dubai Expo 2020 will boost UAE’s economy by $33.4 bn
According to the EY report ‘The economic impact of Expo 2020 Dubai’, Dubai Expo 2020 will boost UAE’s economy by $33.4
billion and support 905,200 job-years between 2013 and 2031, which is equal to nearly 49,700 FTE jobs per annum. During October 2021 and March 2022, when the Expo is scheduled to take place; it is forecasted to add the equivalent of 1.5 percent to the UAE’s GDP.
Matthew Benson, Partner, Strategy and Transactions, MENA, EY said in the report that Expo 2020 is an exciting long-term investment for the UAE, and is expected to have a significant impact on the economy and how jobs are created directly and indirectly. As the host, Dubai aims to use the event to further enhance its international profile and reputation. The event will celebrate innovation, promote progress and foster cooperation, and entertain and educate global audiences.
The major benefiter will be the construction sector as projects are undertaken to build hotels, building the site and supporting infrastructures such as roads and bridges. Also, the construction of the Dubai Metro Route 2020 line was announced. The small and medium
Analysis \ Dubai Expo 2020
enterprises (SMEs) in UAE will receive around Dh4.7 billion in investment during the pre-Expo phase. The sector is forecast to support 12,600 job-years which are in line with Expo 2020’s goals.
Further, during the period of October and March, tourists will spend significantly on hospitality, tickets, food and beverage, merchandise, accommodation and transportation and communication which will propel economic activities in the region. Nearly 70 percent of visitors to the Expo 2020 are expected to come from outside the UAE. This provides the hospitality industry in Dubai a massive impetus to capitalise which will again contribute to economic gains. Dubai Expo 2020 is also in line with UAE vision 2030 and intends to contribute to new business generation, GDP growth and job creation across the region to support a sustainable, resilient and diversified economy.
What will the UAE economy look like in the next few years?
The UAE’s open economy, which is the Arab world’s second-biggest economy, heavily relies on crude oil and tourism. It confronted a double whammy shock with a dip in both price and demand of oil. Even though the economy is trying to diversify, it has a long way to go. The Covid-19 pandemic attacked the UAE economy on the two fronts it heavily relies on. Oil demand dipped as a result of the pandemic. Borders were sealed and flights were grounded, which led to severe losses of the aviation as well as the tourism and hospitality sector.
As a result of the pandemic, the UAE economy contracted by 6.1 percent in 2020, according to the Federal Competitiveness and Statistics Centre. It was the first time that the UAE economy contracted since the financial crisis of 2008. Economic recovery depends on factors such as vaccine rollouts, exposure to tourism and stimulus packages to support businesses and households in the emirate. This is why the Dubai Expo 2020 is going to play an important role not only in an economic recovery but to drive growth in the coming years.
According to the Central Bank of UAE, the value of the country’s goods and services assessed with regard to inflation is expected to rise by 3.5 percent in 2022. This was revealed in the central bank’s annual report. Dubai’s economy is forecasted to maintain 3.8 percent to 4.6 growth over the next 5 years, according to a paper published by the London based Capital Economics organisations. Moody’s also reaffirmed a positive rating for UAE and praised the economy for the government's rapid and sufficient support to cope with the shock. The agency estimates the country’s GDP to return to pre-pandemic levels in three years.
As the third-largest oil exporter from the Gulf, the hydrocarbon sector is still a major contributor to the emirate’s economy. According to the Organisation of Petroleum Exporting Countries (OPEC), global oil demand is forecasted to grow by 6 million barrels per day (bpd) this year as economic activities are resumed in every part of the world.
Global economic recovery Covid-19 vaccination
Feature
Due to unequal distribution of the Covid-19 vaccine, the economies of rich nations are thriving whereas the poor countries are showing a stark decrease
Vaccine inequality hinders economic recovery
Rachel Taylor
By now, the Covid-19 pandemic has reached almost every country in the world and it has left a devastating effect on the global economy. As the world stood still, governments from all over the world witnessed plunging economies. Since then, a number of vaccines have been developed across the globe and some are still in the development phase. But we also need to recognise that vaccine programmes are an investment for any country as they improve public health, life expectancy, and work performance. Swift vaccination can also reduce government spending on disease treatment and control. Without the vaccine, it will be extremely difficult to end the spread of Covid-19. The pandemic launched an economic crisis unprecedented in speed and clarity. In order to contain the disease, most countries ordered nonessential businesses to shut down. What followed was a massive number of people losing their jobs and the demands of certain products plugning all over the world.
The Covid-19 pandemic also showed its effects on the fragile economy of Middle East and North Africa (MENA) as the region faces lockdown measures, interrupted supply chain, major declines in tourism, and temporarily low oil prices. Iran was one of the early victims of the pandemic, with a first wave of fatal cases as early as March 2020. Similar to Europe, the MENA regions, barring a few countries, faced three waves of the pandemic. Disruption of the global value chain and capital flow also affected the domestic production and demand, not to mention the confinement measures imposed for containment reasons in most of MENA countries brought the economy for many sectors to a standstill. Most governments have responded with monetary and fiscal measures to protect
Global economic recovery Covid-19 vaccination
Vaccine recipient per continent
1. Asia
59%
2. Europe 17%
3. North America
16%
4. South America
6%
5. Africa 1.7%
5. Oceania
0.3%
Source- Al Jazeera companies from going bankrupt. The effectiveness of these measures ensure a swift recovery once the spread of the virus is under control. But how well these sectors perform also depends on how well they were doing before this tragedy struck.
Vaccines are vital for global economic recovery
While the Covid-19 vaccines are one of the most successful ways to get the world economy back on track, it has also been witnessed that vaccines are not equally available in all the regions. Early during the pandemic, when Pfizer announced that they have come up with the vaccine for Covid-19, they also mentioned that they intend to profit from this. In the first three months of 2021, Pfizer’s vaccine brought in $3.5 billion in revenue and hundreds of millions in profit. Other companies that have developed the vaccines are making marginal profits as a result of Covid-19. Moderna received public funding to develop its Covid-19 vaccine and expected to earn in billions from the vaccine sales. Even with AstraZenca and its ‘nonprofit’ model, it will receive billions in revenue and it can also raise its price once the pandemic is considered to be over.
Amid all of this, the rich nations are refusing to share their vaccines with the developing nations speedily or equitably. While 60 percent of the adult population in the UK is completely vaccinated, only 1 percent of Uganda’s population has received both the doses needed. According to data, the 50 least wealthy nations of the world are home to 20 percent of the entire world’s population and have received only two percent of vaccine doses. Following the news of the release of the first Covid-19 vaccine, the Organisation for Economic Co-operation and Development (OECD) mentioned that there is hope for the first time since the pandemic began. Hopes of life one day returning to a semblance of normality for the world were given a huge shot in the arm, quite literally, after Pfizer and BioNTech announced that they have developed a Covid-19 vaccine vaccine that is more than 90 percent effective in preventing the contraction of the virus.
In response to this, the International Monetary Fund (IMF) stated that a faster global economic recovery was feasible since it meant that transmission among people will be reduced, and that will allow activity to return more rapidly to pre-pandemic levels than currently projected, without triggering repeated waves of infection. Experts have predicted that from the middle of 2021, global recovery will start strengthening as vaccines are rolled out across the world, and socialdistancing measures begin to be relaxed. While the recovery path is proving to be bumpier than expected, as the second wave of the virus prompts new restrictions, the vaccine news is very positive for the economic outlook over the next two years. Rating agencies such as the Global Economic Outlook published in December see global gross domestic product (GDP) falling by 3.7 percent in 2020, which is smaller than the 4.4-percent contraction it predicted in September.
However, Europe and North America will contribute less than their respective weightings in the world economy. According to experts, the European Economy is predicted to decline by 3.6 percent in 2021 and 3.3 percent in 2022, while the US economy is projected to expand 3.2 percent in 2021 and 3.5 percent in 2022. Even after six months of vaccine rollout, not everyone had received them immediately. In fact, time and again we have seen headlines regarding the vaccine crisis in many parts of the world, especially in Southeast Asia and Africa. Currently, there are not enough doses for 7.8 billion people of the world and it’s likely to stay this way until some time. A lot of work is needed to ensure the world can successfully move into a post-COVID era with the global economy operating once again at full capacity.
Vaccine inequality could disrupt growth
The International Monetary Fund (IMF) has released a stark warning for the
Feature \ Vaccine inequality economy
global economic recovery, saying that the divergence between higher- and lowerincome nations is getting worse because of Covid-19 and its highly unequal rollout of vaccines. In it’s updated report titled ‘World Economic Outlook’, IMF said overall economic risk remains significant. The report also showed an upward growth for all developed nations but downgraded the prospects for emerging and developing markets, showing that the recovery is largely confined to specific regions and countries.
The global economy was projected to grow at the rate of 6 percent in 2021 and 4.9 percent in 2022, which is also considered to be the strongest rebound since the 1980s, when the economic body started keeping records. The 2022 estimate was made earlier this year, keeping in mind that experts expected the virus to slowly die down. Both the above projections are made keeping in mind the expectations of further fiscal support in the US and the stronger growth trend observed in the wealthier nations.
Gita Gopinath, chief economist of IMF mentioned that if the pandemic gets worse, the already fragile economy would tighten further, which, in turn will inflict a double hit on almost every emerging market, thereby severely setting back their recovery. But, for emerging and developing markets as a group, growth projections for this year were cut down by 0.4 percent from the previous number revealed by the IMF. The primary reasons behind the lowered numbers are lower vaccination rates, higher infection rates, and less fiscal firepower to support their economies. Gopinath did mention that the primary reason for the downgrading of the market is the Covid-19 virus. She also mentioned that amid all of this, if there is political instability and geopolitical risks, the inequality will worsen further.
While the developing economies of the world saw annual per capita income decline by 2.8 percent relative to pre-pandemic levels, the IMF said the decline was much more for middle and lower income countries, standing at 6.3 percent, except China. It has been more than a year since the pandemic started and vaccine access still remains as the best option for global recovery. IMF in its
Global vaccination rates
1. North America 41%
2. South America
26%
3. Asia 22%
4. Europe 38%
5. Africa
2%
6. Oceania
16%
Source- Al Jazeera
Global economic recovery Covid-19 vaccination
report also mentioned that even rich nations with better rollouts may face headwinds if the virus continues to circulate around the world. According to a calculation by the IMF, across advanced economies, nearly 40 percent of people have been fully vaccinated. Compared to the emerging markets, that rate is only 11 percent and only a tiny fraction for lowest income countries.
Seeing these trends, the IMF urged the other countries to improve their cooperation on fighting the pandemic, mentioning that it has strong economic benefits. The latest report mentioned that better global cooperation on vaccines can help prevent new waves of infection and emergence of new viruses, which, in turn will end the pandmeic sooner. And as we all know, the sooner the pandemic ends, the faster everything will be back to normal, especially among emerging markets and developing economies.
Another strong area of divergence being offered by the government is fiscal support. For many of the world’s lower income countries, the support given was already depleted last year. During the same period, the low-income nations are at a risk of facing upward price trends, especially if food costs don't go down. This could increase the borrowing cost of middle to lower-income countries, along with some existing concerns. Gopinath also mentioned that central banks don’t need to take any action immediately, but they should be prepared to stick to their stricter policies if price rise keeps increasing. One way to help ease this massive pressure is the IMF’s issuing $650 billion in Special Drawing Rights (SDRs). These funds can help a lot of countries around the world to cope with the economic fallout from the pandemic but the allocation will favor wealthier nations since the distribution is based on quota share by the IMF. Some governments and activists are calling for wealthier nations to donate their chunks of the allocation to those in need. While Gopinath didn’t exclusively promote this proposal, she lent her support to the idea.
Covid-19 delta variant a growing concern
The rapid spread of the delta variant of Covid-19 is causing economists to worry about Europe’s economic outlook as the risk of infection rises along with reintroduction of travel with social restrictions. In the recent months, we have witnessed the lifting of lockdown measures across many regions in Europe, which, in turn, has led to an increase in business activity, shopping, and household earnings. This is making economists forecast a positive economic outlook for Europe. However, these assumptions seem doubtful ever since the infectious delta variant started accounting for the majority of new cases in many European countries and is driving infection rates up to their highest level for months. Germany and France warned their citizens against travel to Spain because of the growing number of delta variant cases. According to recent media reports, Spain’s tourism sector suffered a major blow as the country crossed Portugal, registering the highest number of cases in mainland Europe. This period was critical for the economy to grow as it attracts a lot of global tourism.
Pablo Hernández de Cos, governor of the Bank of Spain mentioned that the forecast of strong economic rebound was made keeping in mind that the global health crisis will be averted after the summer and the Spanish tourism sector will be back on its feet. He also warned saying that there is still a lot of uncertainty surrounding the new Covid-19 variants and what kind of containment measures we need to take to contain the spread further. The European Centre for Disease Prevention and Control in its July report mentioned that infection rate for the EU increased to 51.6 per 100,000 people, but hospitalisation and death rates remained stable.
Paolo Gentiloni, the EU’s economics commissioner, said the forecasts did not undertake the repercussions of the delta variant. It was rather a side effect or a
Feature \ Vaccine inequality economy
downside risk. Hospitalisations and deaths from the virus remain very low, while more than 70 percent of EU adults are fully vaccinated. Economists have pointed out that the delta variant is primarily targeting the younger people, who are less likely to fall fatally ill. Despite the rise in cases, the Spanish government reports that hospitalisation rate is only 2.6 percent of beds occupied by Covid-19 patients compared with 2 percent a week ago and the infection rate is less significant among the vaccinated people, when compared to the unvaccinated ones.
India is one of the countries that faced the worst wrath of the delta variant. The infectious strain was discovered last October and because of a casual attitude towards safety measures and a lack from the government’s side, it led to a disastrous second wave, and since then, has swiftly spread globally. The variant, taking everyone by surprise, has managed to dethrone the previously dominant alpha variant, which was first detected in the U.K. last fall, and has been responsible for new infections in Europe along with a steep rise in cases in the U.S. The World Health Organisation has already warned that, based on the estimated transmission advantage of the delta variant, it might rapidly cross other variants and become the dominant circulating lineage over the coming months. WHO also noted that the presence of the delta variant over the last month crossed the 75 percent mark in many countries including Botswana, China, Denmark, India, Indonesia, Israel, Portugal, Russia, Singapore, South Africa and the UK, Bangladesh, Australia.
Fortunately, ever since the cases peaked in May, the situation has improved a lot. On May 7, the cases in India stood the highest at the astounding number of 414,188 infections and several thousands deaths. On August 22, India reported 30,948 Covid-19 cases and 403 deaths in 24 hours. Nonetheless, after the US, India has the second-highest number of recorded Covid-19 cases in the world, with over 31.2 million registered cases and almost 419,000 recorded fatalities. A number of public health officials mentioned that the regional lockdowns in May reduced social interaction and an increasing number of antibodies against Covid among the general population were the primary reason for the decreasing number of Covid-19 cases in India. Overseeing one of the world’s largest vaccination drives is a massive undertaking since India has to vaccinate around one billion adults and the total vaccination rate remains sluggish when compared with other countries around the world.
Global economic outlook positive
The economic prospects of the world have changed sharply from the April 2021 World Economic Outlook forecast in 2021. The inequality of vaccine distribution has divided the world into two parts- those who can afford the vaccine and look forward to a comparatively normal life later this year and those that will still face resurgent infections and rising COVID death tolls. The recovery, however, is not assured even in countries where infections are currently very low so long as the virus circulates elsewhere. The global economy is projected to grow 6 percent in 2021 and 4.9 percent in 2022.
Prospects for emerging markets and developing economies have been marked down for 2021, especially for Asia. It is also important to keep in mind that slower than expected vaccine rollout will help the virus mutate further and it might again lead to tightening economic conditions. The actions taken by global economic bodies also play a vital role here. A $50 billion IMF staff proposal, jointly endorsed by the World Health Organization, World Trade Organization, and the World Bank, provides clear targets and action aimed at ending the pandemic. The proposed $650 billion General Allocation of Special Drawing Rights at the IMF is set to boost the assets of all economies and is expected to ease liquidity constraints.
Countries with highest vaccination rates
1. Israel 121.63
2. UAE
115.75
3. Chile 86.65
4. Bahrain 85.59
5. UK
82.52
6. US
80.98
4. Hungary 74.65
5. Serbia 59.10
Source- Statista
Economy
Earlier last month, the Executive Board of the International Monetary Fund (IMF) concluded that Brazil’s economy has performed better than expected and is projected to grow by 5.3 percent in 2021. GDP regained its pre-pandemic level in the first
British Prime Minister Boris Johnson recently promised to repair the UK economy by cancelling cheap foreign labour from the country. Mentioning that people might
Brazil’s GDP is projected to grow by 5.3%: IMF
quarter of 2021 and the economy continues to flourish and is supported by booming terms of trade and robust private sector credit growth.
The economy was also helped by some renewed lockdown measures after a severe Covid-19 wave earlier this year and the rollout of vaccination have helped bring down infections since April, with new daily Covid-19 cases and deaths falling significantly from their peaks. The government also has a significant amount of vaccine doses to fully inoculate the entire adult population in 2021, with the most vulnerable population expected to be fully inoculated by the end of the year.
Inflation is expected to fall steadily from recent peaks by the end of 2022. Additionally, public debt is also expected to drop to 92 percent of GDP in 2021 and remain around that level over the medium term.
Post-Brexit
Boris Johnson promises revamp of post-Brexit economy
panic buy at petrol stations, there might be hoarding situations, with retailers even warning of a bleak Christmas but, the UK Prime Minister says that the short-time pain is worth it.
Johnson also mentioned that the country is dealing with the biggest underlying issues of the economy and society alike and the current government is tracking problems that no other government has previously thought of facing. The government is embarking on a new direction which has been long overdue for the country. During this speech, he also vowed not to go back to the pre-Brexit model of uncontrolled immigration.
Additionally, British businesses will have to invest in their workers and in technology to push the country "towards a high wage, high skill, high productivity economy." The government is embarking on a new direction which has been long overdue for the country. During his speech, he also vowed not to go back to the pre-Brexit model of uncontrolled immigration.
Japan
Fumio Kishida takes office as Japan’s prime minister
Fumio Kishida has led Japan's ruling Liberal Democratic Party (LDP) to victory and by becoming the next prime minister the world's thirdlargest economy out of the Covid-19 pandemic, according to media reports. The 64-yearold Kishida was elected leader of LPD last week and was officially confirmed as the country's 100th prime minister following a parliamentary vote.
Kishida also announced a new cabinet and out of 20 members, 13 have no previous Cabinet experience, three are women and the average age is 61. The party's popularity fell after it was pushed to host the Tokyo Olympics despite public opposition. Kishida, who was formerly a foreign minister, beat Taro Kono, who was widely regarded as the most popular candidate. Given that he is entering this position post a global pandemic, he faces a range of tough issues including post-pandemic economic recovery and confronting threats from North Korea.
He has also suggested a health crisis management industry in order to deal with the pandemic and backs the idea of passing a resolution condemning China's treatment of the Uyghur minority.
Kishida, who was formerly a foreign minister, beat Taro Kono, who was widely regarded as the most popular candidate Dubai economy to grow by 3.1% in 2021
Dubai’s economy is forecasted to expand by 3.1 percent this year and will be primarily driven by effective policy measures that minimised the impact of Covid-19, according to the latest government projections. Another driving factor for Dubai’s currently thriving economy is Expo 2020 global trade fair, which began in October.
The trade fair has attracted economic activity this year and laid foundations for even faster growth momentum, according to data from the Department of Economic Development. Dubai’s economy is expected to grow by 3.4 percent in 2022. The government took smart and decisive action to mitigate the negative impact of Covid-19 on the emirate and those efforts were supplemented by new legislation and amendments to the investment and residence laws in the country.
Dubai’s economy, which is the commercial and tourism hub of the Middle East, has bounced back strongly after suffering from a slump last year during the Covid-19 pandemic. The tourism and real estate sectors have also made significant recovery aided by the stimulus package of $1.93 billion since the outbreak of Covid-19 to support the economy, businesses and people.
Economy
Dubai non-oil foreign trade up by 31% in H1
Over the last couple of years, the UAE and other Gulf nations are trying to diversify their economy and broaden their revenue sources and at the same time, reduce the economy’s dependency on oil. During the first half of 2021, Dubai’s non-oil foreign trade was up by 31 percent. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of the Executive Council of Dubai revealed that during the period, non-oil external trade reached Dh722.3 billion from Dh550.6 billion a year ago.
China continued to be Dubai’s biggest trading partner. Trade with China reached Dhs86.7 billion, up 30.7 percent compared to Dh66.3 billion recorded in the first half of 2020. Other trading partners include India, the US, Switzerland and Saudi Arabia.
The Indonesian Parliament approved one of the country's most ambitious tax overhauls recently. Some of the important decisions taken during the parliamentary session include the decision to raise the value-added tax
Exports also grew by 45 percent yearon-year in the first half of 2021 to Dh109.8 billion from Dh75.8 billion. Additionally, imports also increased by 29.3 percent yearon-year, from Dh320 billion to Dh414 billion, re-exports grew by 28 percent year-on-year. Dubai's foreign trade grew by 10 percent during the January-March 2021 quarter and reached Dh354.4 billion. Dubai's foreign trade grew by 10 percent during the January-March 2021 quarter and reached Dh354.4 billion
Indonesia overhauls major tax laws
(VAT) rate in the coming years. The parliament also passed a monumental tax overhaul bill with an aim to improve its revenue stream. The bill means we could see the introduction of a new carbon tax and the cancellation of a planned corporate tax cut. We could also see a higher income tax rate for wealthy individuals.
Currently, the VAT rate in Indonesia is 10 percent. However, it is expected to be raised to 11 percent next year and eventually to 12 percent by 2025. The decision to increase VAT has attracted considerable criticism from various experts and policymakers. Indonesian law minister Yasonna Laoly has defended the decision saying that the new regulations will help the country improve its revenue which took a severe hit as a result of the Covid-19 virus.
One expert argued that a phased increase in the VAT rate will be less onerous on consumers, considering that the post-pandemic recovery will be fragile and uneven.
