A survey by the Dubai Chamber of Commerce revealed that a whooping 70% of businesses in the Emirate are expected to go out of business as the effect of Covid-19 continues to batter the economy.
Citing a CNBC report, the chamber surveyed 1,228 CEOs across a range of sectors between April 16 and April 22, during the national sterilization period wherein all movements have been restricted.
Nearly three-quarters of the respondents are small businesses with fewer than 20 employees. Of the surveyed respondents, more than two-thirds saw a moderate-to-high risk of going out of business in the coming six months: 27 percent said they expected to lose their businesses within the next month, and 43 percent expected to go out of business within six.
Dubai’s economy mainly relies on sectors like hospitality, tourism, entertainment, logistics, property and retail.
“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 released Thursday, entitled “Impact of Covid-19 on Dubai Business Community.”