Why dubai and abu dhabi become more affordable for entrepreneurs

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Why Dubai And Abu Dhabi Become More Affordable
For Entrepreneurs
Presentation By Start Any Business
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Dubai and Abu Dhabi both cities are the perfect
destinations to start a business in the United
Arab Emirates (UAE). Both cities attract
entrepreneurs and traders from across the globe
to start their business. This year Dubai and Abu
Dhabi became more reasonable. If you are
wondering why Dubai and Abu Dhabi have become
more affordable for entrepreneurs then here we
highlight the details that a new report says
about Dubai and Abu Dhabi. Both cities of the
United Arab Emirates (UAE) are affordable because
the cost of living declined due to a drop in the
oil process and deflationary pressure. From the
43rd to 53ed position the Abu Dhabi moved 10
places down in The Economist Intelligence Units
latest Worldwide Cost of Living Index 2020 and on
the other hand, Dubai falls down from 58th to
66th position. The major reason behind the
reduced cost of living in the United Arab
Emirates (UAE) was the decline in oil
prices. Now, Dubai and Abu Dhabi the two best
business hubs of UAE have become the more
affordable country for ex-pats because the cost
of living has declined in spite of the
introduction of value-added tax (VAT). Market
examiners assigned this to the deterioration in
rents, increasing of the dollar-pegged dirham
against other currencies, and lower oil prices.
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The Upasana Dutt head of World Cost of Living and
Liveability Index at The Economist Intelligence
Unit said because of the plunge in global crude
prices, the United Arab Emirates (UAE) has been
facing deflationary pressures. This has changed
the shopping basket of the consumer and the
apparel sector. She also said that the price
trends in the United Arab Emirates (UAE) are not
likely to see further downward trends as the oil
process recover moderately, although she expects
a still subdued consumer sentiment in the year
2021. The CEO at Chartered House Anurag
Chaturvedi said that Dubai and Abu Dhabi have
seen process fall because overseas workers left
the country because of job losses after the
coronavirus pandemic. He also added that With
the all-round population declining throughout the
last six months, particularly the Asians who make
up the majority of the country population, this
gives the market downward. Along with this the
reason for the decline in the rating is mainly
due to the consumer spending fell sharply in the
trend and luxury segments.
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The Economist for the MENA region at Capital
Economics, James Swanston, said that headline
inflation in the United Arab Emirates (UAE) was
already in negative territory before the turn of
the years slowed sharply in recent months. He
also added, there are a couple of major factors
driving deflation. The first is downturns in the
real estate sectors. The property prices and
rents in both the United Arab Emirates have been
declining since the middle of 2016 and the
further hit to demand from the recent crisis
blended with more supply coming on stream has
caused rents to fall even more sharply. So the
housing inflation in these cities has
slumped. After this he also added, the second is
the effects of virus containment measures, which
have hit domestic demand hard and pessimistic
price pressures. Sectors most exposed to
containment areas have been those where expansion
has fallen the most. Such expansion of
recreational goods and services has plummeted in
numerous Gulf economies as demand collapsed.
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