Seventy percent of Dubai businesses fear they could go bust in the next six months due to the financial problems brought about by the coronavirus crisis, new study revealed.
23 May 2020, 12:00 AM
31 May 2020, 12:00 AM
In a study released on Thursday, the Dubai's chamber of commerce said that lockdowns put in place to curb the spread of Covid-19 "is bringing demand in key markets to a standstill... pushing economic activity down to levels not seen even during the  financial crisis."
The Chamber surveyed 1,228 CEOs across a range of sectors between April 16 and April 22, during the emirate’s strictest lockdown period. Nearly three-quarters of those surveyed were small businesses with fewer than 20 employees. Of the respondents, more than two-thirds saw a moderate-to-high risk of going out of business in the coming six months: 27% said they expected to lose their businesses within the next month, and 43% expect to go out of business within six.
“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 Dubai Chamber wrote in its report released Thursday, entitled “Impact of Covid-19 on Dubai Business Community.”
While some of those restrictions have been eased, the city has plans to reinstate several more in the coming days to avoid any potential outbreaks as people commemorate Eid, a Muslim holiday marking the end of Ramadan.
Fears of a new wave of infections and deaths could extend the lockdowns, which would have disastrous consequences for business.