Economic recovery in the UAE is gaining pace due to the fast Covid vaccine rollout and hosting the Expo 2020 Dubai event.

According to a new report published by Standard Chartered: “Almost 80% of the UAE’s population has now been fully vaccinated, and over 85% of the vulnerable population. This has allowed the economy to remain largely open, even though new cases persist. The recent surge in the Delta variant in key tourism markets including the UK and India may weaken near-term growth performance. However, Dubai’s hosting of the delayed Expo 2020 in October is likely to boost economic momentum in Q3.”

In addition, the Delta variant of coronavirus represents a larger threat to non-Gulf economies than the oil-exporting GCC countries, according to Capital Economics.

The independent economic research company stated: “That’s good news for the Gulf countries which, for the most part, have achieved high levels of vaccine coverage. Some restrictions may still be tightened to curb outbreaks – Abu Dhabi reintroduced some measures to coincide with Eid al-Adha. But, in general, containment measures will lie towards the softer end of the spectrum and inflict little economic damage.”

Moreover, according to Standard Chartered, Expo 2020 should fuel a considerable recovery within the tourism sector, even if the 25 million visitor target isn’t reached, says a Khaleej Times report.

“We expect the UAE’s recovery to gain momentum in the second half of 2021,” said Standard Chartered, going on to say that the UAE’s real GDP is forecast to grow 2.5% in 2021, 3.0% for 2022 and 3.5% for 2023.

“While expatriate population growth has slowed, it did not contract in 2020 as initially feared. Policies aimed at attracting expatriates, including the liberalisation of residency requirements, should support UAE population growth in the years ahead. In line with improving fundamentals, we expect property prices to recover gradually,” it added.

Furthermore, increased oil production as OPEC cuts are eased is also likely to bolster growth in the second half of this year, with the focus on social infrastructure spending and other construction projects.