Dubai Cuts State Budget by Nearly $3 Billion for 2021
Following a dive in tourism and income from other areas of the economy due to the coronavirus pandemic, Dubai said it will cut its state budget to $15.5 billion in 2021, down nearly $3 billion from 2020.
The emirate also said it is expecting a deficit of $1.3 billion for 2021, the fifth year in a row that it will post a deficit. The economy has contracted an estimated 6.2% for 2020, but is expected to grow by 4% next year, AFP reported.
Dubai had closed its borders for several months in 2020 due to the coronavirus pandemic. The six-month Dubai Expo 2020 global trade fair that was set for October was postponed to next year, causing further damage to the already weakened economy.
“The newly-announced budget takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the Covid-19 pandemic on the global economy, the Dubai Media Office said in a statement released on Sunday.