Dubai at Risk as Coronavirus Poses Shock to U.A.E. Economy, Says Moody’s

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Dubai’s reliance on real estate, transportation and tourism makes the Middle East business hub the most exposed to the impact of coronavirus in the United Arab Emirates, according to Moody’s Investors Service.

“The coronavirus outbreak and the pandemic’s indirect impact on global growth and trade pose a significant shock to economic growth in the United Arab Emirates,” Moody’s said in a report.

In the U.A.E., “the negative growth and fiscal implications are most acute in Dubai, while it faces the greater risk of its government-related entities requiring financial support as a result of the deterioration in economic conditions,” it said.

Dubai locked down the city for about a month to halt the spread of the virus. Its flagship Emirates airline has grounded passenger flights and the Expo 2020 exhibition scheduled to start in October was delayed by a year. Dubai eased movement restrictions last week.

Moody’s also said:

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