Anticipated Improvement in Tourism to Contribute to UAE’s V-Shaped Economic Recovery: First Abu Dhabi Bank

Emerging out of COVID-19, the economy of the United Arab Emirates (UAE) is expected to grow by 2.5% year-on-year (YoY) overall (3.6% YoY for the non-oil sectors) in 2021, according to a new report released by First Abu Dhabi Bank (FAB). Data from the Central Bank of the UAE showed that the economy declined by roughly 6.0% in 2020 overall, with the non-oil sector shrinking 5.0% YoY.

The report, titled ‘Global Investment Outlook’, states that a rebound in tourism and a pick-up in oil prices, coupled with the UAE’s strong ties to emerging markets should result in a V-shaped economic recovery in 2021.

The report signals an uptick in tourist arrivals, given pent-up demand for travel along with the UAE’s efficient management of the COVID-19 pandemic,...