70% of Dubai businesses could close because of COVID-19 impact
70% of businesses in Dubai are expected to close within the next six months because of COVID-19, according to a survey by the Dubai Chamber of Commerce.
"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," said the Dubai Chamber of Commerce.
A Dubai Chamber spokesman also qualified the survey's results, and issued a statement saying, "Dubai Chamber surveyed 1,228 out of 245,000 companies in Dubai in April when the lockdown measures were in the most strict phase. Their sentiments were based on the expectation that the strictest lockdown phase would be prolonged."
"We anticipate that business confidence will improve significantly in the coming weeks and months as businesses return to more normal operation."
Dubai relies on hospitality, tourism, entertainment, logistics, property and retail, which are all industries being impacted by the pandemic.
The United Arab Emirates currently has nearly 28,000 positive COVID-19 cases.
In March, the Dubai government announced a 1.5 billion dirham ($408 million) stimulus package to help those impacted by the virus.
The UAE's central bank also issued a $70 billion package to help businesses.
CNBC reports, many businesses still need additional support but are uncertain of how the economy will recover.