A survey by the Dubai Chamber of Commerce reveals that up to 70% of Dubai companies could struggle by the end of the year due to the Coronavirus.
The survey asked 1,228 CEOS across a range of businesses at the end of April when the restrictions were at their toughest. And more than two-thirds of the replies said there was a high risk of the business collapsing before the end of the year.
Another 27% admitted that they expected to lose their business within the next month.
In total, nearly half the restaurants and hotels surveyed expected to go out of business in the next month.
Small and medium business most effected
While Dubai has one of the most diverse business portfolios in the region, the survey found that small and medium companies were likely to be the most affected.
“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 , entitled “Impact of Covid-19 on Dubai Business Community.”
The government has already pledged an AED1.5 billion stimulus package for SME businesses effected by the pandemic.
And with new restrictions eased from Wednesday, hopefully, business in the UAE will be able to bounce back.