UAE contracted more sharply than Saudi Arabia last year: S&P | ZAWYA MENA Edition
The UAE contracted more sharply than Saudi Arabia in 2020 due to weaker economic activity in Abu Dhabi and especially in Dubai, said Trevor Cullinan, Lead Analyst, GCC Sovereign Ratings, at S&P, in an email to Zawya.
Saudi Arabia’s economy is almost twice the size of the next largest GCC sovereign, the UAE, and so has an overweight bearing on the aggregate data. “We expect a broad recovery across hydrocarbon and nonhydrocarbon sectors, over the period to 2023.”
He said Abu Dhabi was hit by low oil prices last year due to it being more dependent on the oil sector (about 50 percent of real GDP compared with about 40 percent for Saudi Arabia). Dubai was hit due to lockdowns related to the COVID-19 pandemic, which affected the trade, travel, and tourism industry.
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