Morgan Stanley, Nomura Say It’s Time to Bet on #Dubai Tourism - Bloomberg

Morgan Stanley, Nomura Say It’s Time to Bet on Dubai Tourism - Bloomberg

Morgan Stanley and Nomura Holdings Inc. say it’s time to bet on a rebound in Dubai’s tourism industry as 200,000 travelers fly in to the desert city for the Christmas and New Year holidays.

The rollout of Covid-19 vaccines, a thaw in relations with Israel and Qatar, and the rescheduled Expo 2020 exhibition will benefit the Gulf Arab emirate, the strategists say.

The travel rebound and Expo in October will bring a “better-than-expected impact on growth and profits,” said Tarek Fadlallah, the chief executive officer of Nomura Asset Management’s Middle Eastern unit. Katherine Carpenter, a London-based equity analyst at Morgan Stanley, predicted a “bumper winter tourism season,” in 2021, as well as a “small but incremental boost” from an easing of regional tensions.

Built on trade and tourism in a region reliant on oil, Dubai was hardest hit in the Gulf Arab region as both industries stumbled amid the pandemic. The emirate reopened its doors to international travelers in July, but tourist traffic is only picking up now. S&P Global Ratings sees the economy contracting almost 11% in 2020.