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Dubai expects 70% companies to shut businesses in next six months

Dubai businesses
The survey was conducted on 1,228 CEOs across various sectors during the period between April 16 and April 22

Nearly 70 percent of companies in Dubai are expected to terminate their businesses within the next six months on the back of the ongoing pandemic, according to a survey published by the Dubai Chamber of Commerce.

The Dubai Chamber said in its report, “Full and partial city-lockdown measures are bringing demand in key markets to a standstill … The double-shock impact is pushing economic activity down to levels not seen even during the financial crisis.” The report is titled Impact of Covid-19 on Dubai Business Community. 

The survey was conducted on 1,228 CEOs across various sectors during the period between April 16 and April 22. This period saw the strictest lockdown imposed by the government. It appears that three-quarters of respondents were small businesses comprising less than 20 employees.

The Chamber’s spokesperson said, “We expect a significant improvement in the business confidence indicators in the coming weeks and months, as companies are expected to resume their operations.” Also, two-thirds of the respondents saw a moderate-to-high risk of running out of business in the next six months.

According to data, 27 percent of respondents expected to lose their business in the next one month and 43 percent expect to run out of it in the coming six months. In fact, Dubai is one of the most diversified economies in the Gulf region, depending on sectors such as hospitality, tourism, entertainment, logistics, property, and retail.

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