How COVID19 (Coronavirus) impacted business in Dubai
The widespread global breakout and circulation of the emerging ‘Novel Coronavirus’ (2019-ncov) has economically impacted international businesses, markets, and regional enterprises in mainland China. More importantly, the dynamics of international flight and travel between the United Arab Emirates (UAE) and contaminated regions in China has disrupted very discrete sectors of the UAE economy.
Although coronavirus’s impact on flight-travel restrictions have been restricted to populations in China, the massive loss of incoming tourists and workers will directly impact business establishment and key industries in the UAE. For business setup in Dubai, this means a temporary blow on critical inflowing UAE industries.
Due to the hysteria-effect of the novel coronavirus on global markets, and the UAE positioned as China’s #1 trade partner, general local business setup in the UAE has worsened for the first time in over a decade.
Due to coronavirus’s threat towards the Gulf’s pre-existing trade and tourism, malls have drastically decreased in consumer activity and cash inflow, according to regional reports in Abu Dhabi and Dubai.
In addition to Dubai’s disrupted status quo on malls and large shopping centers, it’s important to acknowledge that China is Dubai’s biggest spender on international tourism, the leading exporter of clothing and textiles, and a key player in the global supply chain.
With China’s significant role in tourism sectors, export systems, and the emerging 2020 supply chain, the ncov outbreak could be three to four times larger than the $40 billion impact from SARS virus in 2003.