Dubai cuts 2021 budget as COVID hits economy

DUBAI: Dubai said yesterday it expects to cut its budget to $15.5 billion in 2021 after its economy was impacted by a plunge in tourism and other sectors amid the novel coronavirus pandemic. 

 

DUBAI: A man rides his bicycle past a giant sculpture representing an old radio-cassette recorder on Jumairah Street on Dec 24, 2020. – AFP

The emirate, one of the seven that make up the United Arab Emirates, had posted a record $18.1 billion budget for 2020. “The newly-announced budget takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the COVID-19 pandemic on the global economy,” said a statement by the Dubai Media Office.

Dubai foresees a deficit for the fifth year in a row, of $1.3 billion in 2021. In 2019, it had forecast a $700 million deficit for this year. The emirate, which depends heavily on tourism and retail services, closed its border for several months due to the pandemic, resulting in a 10.8 percent GDP plunge in the first half of the year.