Gulf economies may be hit if virus not checked
Impact will be limited if disease contained by March — rating agency
Economies of the UAE and other Gulf states will be adversely impacted by the coronavirus outbreak in China, according to Standard & Poor’s.
Analysts at the rating agency said they expect the implications to weigh on the region’s growth prospects, given the importance of the Chinese economy to global economic activity. China contributes between 4 per cent and 45 per cent of GCC countries’ total goods exports, with Oman being the most exposed.
“Virus-related travel restrictions, if not lifted as we expect, could weigh on the GCC’s hospitality industry, but more so in Dubai, which received almost 1 million visitors from China in 2019,” said Mohammad Damak, Director of Research at S&P.
The rating agency expects the impact will be limited for the GCC as a whole, assuming the virus will be contained by March, thus allowing travel and other restrictions to be unwound in the second quarter and there’s no major impact on oil prices. However, analysts said if the virus continues to spread, there is a risk that the economic impact could increase unpredictably, with credit implications not just for China but elsewhere.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, yesterday visited Gulfood 2020, the world’s largest food and beverage trade exhibition at Dubai World Trade Centre.
Shaikh Mohammad toured the exhibition’s halls and stands where he was briefed on products and exhibits by government and private food and beverage processing and packaging companies, as well as modern technologies used in these innovative and advanced processes to ensure their safety and viability for human consumption.
He was welcomed by exhibitors and visitors while touring stands. Shaikh Mohammad expressed his delight over the overwhelming participation of local, Arab and international companies in this major event, which runs until February 20.
More than 5, 000 companies representing 160 countries are taking part in the food exhibition.
Shaikh Mohammad was accompanied by Abdul Rahman Mohammad Al Owais,
Minister of Health and Prevention, and Mariam Al Muhairi, Minister of State for Food Security.
Meanwhile, the region’s first plant-based bottle that is 100 per cent recyclable has been introduced by Agthia Group, which owns the “Al Ain” range of water and dairy products.
The biodegradable bottle, including the cap, will be used for Al Ain water, which has a 40 per cent share of the bottled water market in the UAE.
“We will sign an agreement with the founder-members of Gulf bottling water association to share our knowhow as sustainability requires collaboration and knowledge sharing,” said Tariq Al Wahedi, CEO of Agthia Group.
The bottle uses fermented sugars in the plant sources to convert it into a durable 100 per cent plant-based resin, called Polylactic Acid. The resin is durable in the high temperatures of the UAE summers.
— With inputs from WAM