In response to the coronavirus outbreak, Dubai’s department of finance has directed all government agencies to slash capital spending and halt new hiring until further notice. This announcement has been published online after an official document has been revealed to Reuters.
Dubai has been hit hard by the coronavirus outbreak. The aggressive measures, such as social distancing and city wide disinfection, which are aimed at containing the spread of the virus have brought vital economic sectors such as tourism and transport to a near halt.
On Wednesday, the department of finance told has directed government agencies to postpone also all construction projects that have not begun. This directives should be effective until further notice. in addition, any cost increases for ongoing construction projects are also not allowed.
The economic slowdown in Dubai could wipe 5% to 6% off its GDP this year, analysts and sources have said.
Dubai’s non-oil private sector has also been hit hard, with firms shedding jobs to minimise their losses, particularly in the travel and tourism sector, a business survey showed on Thursday.