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Dream - Rain hits the United Arab Emirates (UAE) for 12 hours, causing floods on Tuesday, April 16, 2024. The local government describes the rain as the largest in the past 75 years.
This rain even soaked the desert city of Dubai with more than 142 mm. The streets appear to be like rivers with high water puddles, even entering buildings and malls.
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Flight activities at Dubai International Airport, which is one of the busiest airports in the world, are also disrupted by flight cancellations and delays. From this incident, what is the economic impact on the UAE?
Quoting The Arabian Post, the economic impact of the flood in the UAE is still ongoing, but early signs indicate disruptions in several sectors, which potentially test the resilience of this renowned region. Tourism, as the lifeline of Dubai's economy, is likely to be heavily affected. The sight of a flooded city can damage the well-prepared image of this luxurious destination.
Disruption at Dubai International Airport, a crucial hub for international travel, can hinder prospective visitors and cause logistical disruptions for existing bookings.
"Dream.co.id."
Infrastructure damage, roads, bridges, and public transportation systems will require significant investment. Although the UAE has advanced infrastructure, the high volume of rainfall may have exposed vulnerabilities in drainage systems that were not designed for such extreme weather events.
Improvement and enhancement will incur significant costs, potentially redirecting resources from other development projects.
The insurance company will prepare to face a surge in claims. Houses and businesses that are flooded are likely to cause significant payouts, which will impact their profits. This, in turn, can lead to increased insurance premiums in the future, which will be a burden for residents and businesses. The construction sector, a key driver of the UAE economy, may face temporary setbacks.
Disturbances in the supply chain due to damaged roads and transportation networks can delay ongoing projects. Additionally, the potential increase in insurance costs for construction projects can reduce investor sentiment.
The impact on the retail sector is more difficult to predict. While some businesses may experience property damage and inventory loss, others may experience an increase in demand for essential items such as waterproof equipment and hygiene supplies. The overall impact will likely depend on the duration of the disruption and consumer confidence afterwards.
write Arabian Post.
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