World’s second highest immunization rate to help Dubai tourism bounce back quicker: S&P

The ratings agency expects economic growth in Dubai to recover this year from the sharp recession of 2020. (File/AFP)

• The UAE is reportedly leading the vaccination effort in the region

ARAB NEWS: The UAE’s tourism and real estate sectors could receive a boost from the speed of the country's vaccination program, said a new report.
Normalization of ties with Qatar and Israel could also support investment according to a report from S&P Global Ratings.
The United Arab Emirates (UAE) is reportedly leading the vaccination effort in the region, with the immunization rate at 55 percent to 60 percent of the population, the second highest globally,” S&P said in a report on Monday. “High vaccination rates could help the UAE’s tourism sector recover earlier than others.”
The ratings agency expects economic growth in Dubai to recover this year from the sharp recession of 2020 triggered by the twin blow of the pandemic and low oil prices.
“However, we expect real estate companies’ profitability to remain under pressure and leverage to be high,” said S&P Global Ratings credit analyst Sapna Jagtiani. “Absent a substantial recovery in revenue, companies are likely to focus on cost optimization, proactively managing their liquidity, and preserving their cash flows. Rated Dubai-based real estate companies still have good liquidity and access to funding, however, despite currently trying times.”
Last year, Dubai saw the sharpest population decline in the Gulf Cooperation Council (GCC) - dropping by 8.4 percent versus the region average of 4 percent, S&P said.