Dubai’s economy is forecast to expand 3.1 per cent in 2021, helped by effective policy measures that minimised the impact of Covid-19, according to the latest government projections.
The hosting of the six-month Expo 2020 global trade fair, which begins in October, has also spurred economic activity this year and laid foundations for even faster growth momentum, according to data from the Department of Economic Development. The emirate’s gross domestic product is expected to expand 3.4 per cent in 2022.
Dubai's leadership took “decisive measures” to ease the repercussions of global challenges on the emirate's economy and those efforts were supplemented by new legislation and amendments to the investment and residence laws in the country, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of the emirate’s Executive Council, said in a Dubai Government Media Office statement on Tuesday.
“Cumulatively, these moves revitalised the economy and stimulated a strong flow of local and foreign investment, allowing the emirate to resume its journey of development, diversification and sustainable economic growth,” Sheikh Hamdan said.
“Over the coming years, Dubai promises to be an even bigger global destination for investment and talent, and a city that offers exciting new opportunities for businesses, entrepreneurs and innovators.”
The economy of Dubai, the commercial and tourism hub of the Middle East, has bounced back strongly from a pandemic-driven slowdown that disrupted global trade flows and severely affected travel and tourism sectors last year, tipping the world economy into its worst recession since the 1930s.
Tourism and real estate sectors that are key to Dubai's economy have made a significant recovery on the back of stimulus packages worth Dh7.1 billion ($1.93bn) since the outbreak of Covid-19 to support the economy, businesses and people.
“These packages came on top of economic support measures launched by the UAE Federal government,” Sami Al Qamzi, director general of Dubai Economy, said.
“Between September 2020 and July 2021, Dubai witnessed a relatively faster recovery in sectors such as transport and tourism compared to other countries.”
A nationwide campaign at pace to inoculate the population against the pandemic has also boosted investor confidence and put the economy “firmly on the recovery path”, Mr Al Qamzi added.
In June, Dubai reduced or cancelled fees for 88 government services to reduce financial pressures on businesses, lower the cost of living, support investors and improve the business environment in the emirate.
In June, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, launched new initiatives to support family companies, help start-ups and attract more skilled workers to the UAE.
Business confidence in Dubai has risen to a seven-year peak as companies in the emirate expect conditions to improve ahead of Expo 2020, according to a survey by the Dubai Chamber of Commerce & Industry.
The forecast by the DED, known as Dubai Economy, also takes into account the expected positive impact of Expo 2020 on economic momentum in the country.
The emirate expects the accommodation and food services sector to record 8.5 per cent year-on-year growth in 2021. Its transport, storage and communications sector is projected to grow by 4.1 per cent, reflecting the “gradual recovery expected until the end of 2021 in tourism and transport activities".
“The wholesale and retail trade sector is also expected to regain a large part of its activity following the Covid-19-induced slowdown, achieving a growth of 4.7 per cent in 2021,” according to government estimates.
However, construction activity is likely to decline in 2021 by 2 per cent as a result of “stabilisation in the construction of residential, office and hotel space, and a relative decline in construction related to infrastructure following rapid growth recorded in the years before 2020".
“Growth is expected to accelerate in 2022 … driven by the continuous recovery of activities that were most affected by the pandemic, such as tourism and international transport, which will also benefit from Expo 2020 activities in the first months of 2022,” the DED said.
Over the coming years, Dubai promises to be an even bigger global destination for investment and talent and a city that offers exciting new opportunities for businesses, entrepreneurs and innovators.”
Sheikh Hamdan bin Mohammed,
Crown Prince of Dubai
During the first three months of this year, Dubai recorded 1 per cent quarter-on-quarter growth, which signalled the start of the recovery phase, Dubai Economy said, citing Dubai Statistics Center's preliminary estimates of the seasonally-adjusted GDP data.
“These figures indicate that there is a positive development and rapid recovery of both Dubai’s and the UAE’s economy, compared to 2020,” Aref Al Muhairi, Executive Director of Dubai Statistics Center, said.
First-quarter Dubai foreign trade data issued by Dubai Customs indicated a 10 per cent jump in the emirate's non-oil foreign trade to Dh354.4bn. Exports achieved significant growth of 25 per cent, reaching Dh50.5bn, and the value of imports increased by 9 per cent to Dh204.8bn, while the value of re-exports increased by 5.5 per cent to Dh99bn.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
Zayed Sustainability Prize
First Person
Richard Flanagan
Chatto & Windus
Dunki
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Under-21 European Championship Final
Germany 1 Spain 0
Weiser (40')
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
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Killing of Qassem Suleimani
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
