The economy of many countries in the Middle East, and falls with the price of Oil. With the “Vision 2030” will Saudi Arabia get rid of exactly this dependence. Means of the choice of investments since 1971, existing state funds of the country are. While the Saudis are shopping for 2015 generous in the world in other industries, has solved the neighboring Dubai, the Problem of Oil dependency for a long time.
The share of industry in the economy of Dubai is negligible. While the whole of the United Arab Emirates (UAE) account for 30 percent of their gross domestic product over the Oil industry, makes up the entire support industry – gas and other mining, including – in the state of Dubai is only 1.6 percent, according to the latest annual report of the Emirate of shows.
Instead, the Emirate has focused for years on the trade, the real estate and construction, logistics and tourism. However, the diversified economy of Dubai is, of all things, a crisis in the Corona-the “Achilles heel”. Best Example Is Dubai’s Flagship Emirates Take.
Emirates strokes three times more than Lufthansa
The state-run Airline, announced this week, up to 30,000 Digits of a total of 105,000 jobs, almost 30 percent of the workforce reduce, so. In contrast, the of the Lufthansa target reduction of 10,000 Jobs – more than seven per cent of all Bodies, is comparatively harmless.
the Airline, strategically located between Europe and Asia depended, the European competition for years. Emirates and local rivals like Etihad or Qatar Airways, grew for two decades, with an average of 20 percent per year. Thanks to cheaper operating costs, the Arab airlines put out the Europeans in the price battle. In addition, Emirates has focused primarily on the more profitable long-haul business. You will experience Beate Sander live!
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The Coronavirus pandemic, this market dominance to an end. “The current crisis is Emirates & co. meeting a while, more so than many Western lines,” said Thomas Jaeger from the data service provider, CH-Aviation compared to the “business week”. “The companies are changing their business model, and even after the crisis in the best case, even with the market grow.” Only the prospect of state aid – such as Lufthansa, is also likely to keep the Airlines from going under.
broke the shaft does not roll in Dubai
However, only the most famous group in Dubai is currently suffering massively. The second leg of Dubai, the tourism and related trade in the metropolis on the Persian Gulf, collapses. How the stock exchange portal “CNBC” reported, citing a survey by the chamber of Commerce of Dubai, expect almost half of all Hotels and Restaurants in the city, to go in the next month Broke.
more dramatic is the situation of the domestic tourism industry. 74 percent of all companies in the industry said, expected to in the coming month, forever sealing make. Across all sectors, 27 percent of the companies hold a Bankruptcy in the next month for will probably, a further 43 per cent expect to within the next six months.
a Total count of 70 percent of all the companies of the sub-Emirate of Dubai in the next half a year the Broke. “The total or partial Lockdown measures have brought the demand in key industries to a screeching halt,” commented the chamber of Commerce of Dubai, the results of the survey, and added: “The shock pushes economic activity to a level not seen since the financial crisis.”
chamber of Commerce put in perspective the results of the survey
Whether Dubai is actually flooded by such a broke shaft, but is not necessarily safe. The chamber of Commerce conducted the survey in mid-April, such as “CNBC”, pointed out, during the strictest Phase of the lock downs. Were surveyed, 75 per cent of small firms with less than 20 employees, as in many other economies, too, hardly longer business failures are prepared.
A spokesman for the chamber of Commerce, Dubai’s self-perspective of the results of the survey again and noted that the expectations of the company based on the assumption that the strict Lockdown in the middle of April would continue. In fact, the Emirates have relaxed the Lockdown with the start of the Muslim fasting month of Ramadan at the end of April. Shopping centres and shops have opened since then limited again, so “CNBC”.
However, the trading of Dubai depends heavily on tourism. And here has changed since the beginning of the pandemic, nothing. So most of the Hotels are empty, and since the 24. March was not a passenger flight, in which not only the inhabitants of the United Arab Emirates were on Board, the returned due to the pandemic in your country.
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in Spite of the independence of crude oil, the crisis in Dubai hits to an even greater extent than the other Emirates or Saudi Arabia. Prior to that, the London-based analysis house of Capital Economics, warned in April: “Dubai is the Lockdown measures, most vulnerable of all the economies in the Middle East and North Africa. We expect that the economy shrinks in Dubai this year, at least five to six per cent if the measures are up in the summer remain.“
crisis is hitting the Emirate of untimely
To this may be added that the prospects of Dubai were even before the pandemic-too-rosy. In 2019 Dubai’s economy grew by just two percent, the weakest growth since the financial crisis, and especially in the tourism and air transport, it ran around at the time.
this is Particularly visible, for example, of Dubai’s latest Prestige project, the Al Maktoum airport. The Emirate had stopped the 36-billion-Euro construction of a turnstile last September abruptly “indefinitely”.
in its current state, the as the world’s largest hub planned airport could handle a year, 26 million passengers. In fact, the number of passengers fraud in the past year, but only 1.8 million. That may be a growth of rich, 81.5 percent year-on-year. Because of the Corona-crisis is more than questionable whether this growth will continue, or there will be more passengers than in the previous year, because the Terminals of the Al Maktoum airport is expected to be currently abandoned than usual.
As commented on the FOCUS Online readers of this post:
“This is the life style of those who belong to the rich ruler – Clans in Dubai. Their wealth is based solely on Oil, nepotism, and the ruthless exploitation of lawless cheap labourers from the Indian-Pakistani area. The Emirates wouldn’t happened to be sitting on Oil, you would be a high probability of a developing country as some of their neighbors who have not had the chance.”
“Could help the European Union – we have a lot of experience with bankrupt States. Received for years of money to your Store to keep running, and you still go with 60 to retire and have twice as many homes as the Germans.”
also read:
- Nearly half a trillion dollars in the Plus: Even Virus crisis makes the Richest even richer
- Italy “a danger”: the Star Economist Roubini warns of collapse of Euro-zone
- Corona the help for the Airline: German government agrees on Lufthansa rescue
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