COVID-19 vaccine will be catalyst to drive global economy in 2021

Inayat-ur-Rahman, Deputy Business Editor

The global economic growth will recover to a great extent next year and the investor trust and confidence will return to market due to quick progress on COVID-19 vaccine development.

This was stated by Sachin Gupta, General Manager of Gulf Pinnacle Investments (GPI), the UAE subsidiary of Gulf Pinnacle Logistics, during an exclusive interview with Gulf Today, adding that the global economy has been passing through a challenging environment in the wake of the COVID-19 pandemic.

“The UAE is among the first markets who staged an early recovery from the pandemic due to effective policy measures and economic stimulus announced by the government,” Gupta added.

Gulf Pinnacle Investments is a private limited company that was established in 2014 in Dubai. It operates in the investment services sector and has four subsidiaries.

“Like other companies and corporate groups, GPI also survived the pandemic shock due to well-drafted contingency plan by the management. We are confident of better days ahead and expect steady growth in all business vertical of the group,” Gupta said.

“GPI was not immune to the pandemic crisis, but we managed to limit its impact due to timely policy measures undertaken by the management,” he said.

To a question, he expressed gratitude to the government and said quick economic turnaround was not possible without the stimulus packages and relief measures announced by the UAE and Dubai to facilitate the businesses.

“The government’s policy initiatives in past six months played key role in reviving the economy from the COVID-19 and global economic slowdown. Dubai was among the first cities which not only exited from the lockdowns but also opened its economy for businesses, investors and tourists under strict safety health measures,” he said.

About the outlook for logistics and transport sectors, Gupta said opening of global economy is a welcome step and it will have a positive impact on key economic sectors including logistics and transport.

“There is no second opinion about the improvement in global economy, however the recovery will be gradual and may take two to three years to hit pre-COVID levels,” Gupta said.

Referring to the International Monetary Fund’s latest report, he said the UAE economy is expected to post 6.6% contraction this year and a growth of 1.3% in 2021.

“The UAE economic outlook is much better and ultimately it will have a positive impact on hospitality, tourism, real estate, logistics and transport,” Gupta said.

Citing quick progress on COVID-19 vaccine, he said it will be a major catalyst to restore investors trust on global economy.

“About five major groups have reported significant progress on the COVID-19 vaccine with a success rate of up to 95% that is a remarkable achievement in less than a year time,” he said.

Gupta said Expo 2020 Dubai will drive growth momentum next year.

“Expo will be a game changer for the UAE economy and may accelerate positive developments on economic front. More than 200 participants, including countries, corporations, multinational organisations and educational institutions will attend six-month long mega event and benefit the local economy,” he said.

Gupta said GPI sees better days ahead and confident of posting steady growth following an improvement in global economy.

“Our business model has a direct correlation with the global economy. If there is a slowdown worldwide, we may have to rationalise our growth strategy,” he said.

“With global economic recovery and higher UAE growth numbers in 2021, I have no reason to believe that GPI will post better performance compared to ongoing year,” Gupta said.

In an earlier report, Sachin Gupta said the pandemic hit global trade by causing disruption in supply chains, shipping networks and ports. However, the situation is improving due to quick progress on the Covid-vaccine development.    

“The industry has survived the pandemic shock and challenge. The short-term outlook for maritime trade is still grim but we are confident of economic recovery and expect better growth numbers next year,” Gupta said.

To a question about the impact of the pandemic on logistics and business, he said there is an urgent need to invest in risk management and emergency response preparedness in transport and logistics.

“We adjusted our operations, finances, sanitary and safety protocols as well as working practices and procedures in line with the government policies and advisory that helped us to minimize the impact of the pandemic,” Gupta said. Effective policy measures, government stimulus help quick recovery in UAE. Opening of global economy will have a positive impact on key economic sectors including logistics and transport