Covid-19: Panic in Dubai as companies plan suspension of activities for six months

Dubai Chamber of Commerce and Industry has revealed in a recent survey that not less than 70 percent of the Dubai operating companies will suspend their activities within six months.

This, they said would be due to the impacts of the coronavirus pandemic which has decreased demands in various fields globally.

The study which was published on Thursday, involved 1228 executives operating in different sectors between 16th and 22nd of April – the period of peak closure in Dubai.

About two third of the respondents revealed that there is an almost high possibility of exiting the market during the next six months

Another 27 percent indicated their expectation of loosing their business the. Next month while 43 percent expects to suspend all activities within six months.

The DCCI in its report entitled “Impact of Covid–19 on Dubai Business Community” said, “The measures for the comprehensive and partial closure of the city push the demand rates in the main markets to complete paralysis… The impact of the double shock curbed economic activity to unprecedented levels, which were not experienced even during the 2008 global financial crisis.”

A spokesman for the DCCI attempted to alleviate some of the shocking findings in the survey, explaining that “The Dubai Chamber of Commerce and Industry conducted the survey on only 1,228 out of the 245,000 companies operating in Dubai in April when the closing procedures were at a peak. The respondents’ reflections on the issue were based on their expectation of a long-term closure.”

“We expect a significant improvement in the business confidence indicators in the coming weeks and months, as companies are expected to resume their operations,” added the DCCI’s spokesman.

The survey results come at a time when the number of infections with the virus has reached 26,000, along with 233 deaths as of Thursday.