<p>Dubai said Sunday it expects to cut its budget to $15.5 billion in 2021 after its economy was impacted by a plunge in tourism and other sectors amid the novel coronavirus pandemic.</p>.<p>The emirate, one of the seven that make up the United Arab Emirates, had posted a record $18.1 billion budget for 2020.</p>.<p>"The newly-announced budget takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the Covid-19 pandemic on the global economy," said a statement by the Dubai Media Office.</p>.<p>Dubai foresees a deficit for the fifth year in a row, of $1.3 billion in 2021. In 2019, it had forecast a $700 million deficit for this year.</p>.<p>The emirate, which depends heavily on tourism and retail services, closed its border for several months due to the pandemic, resulting in a 10.8 percent GDP plunge in the first half of the year.</p>.<p>According to government estimates published earlier this week, the economy will likely contract 6.2 percent this year but is expected to see four percent growth in 2021.</p>.<p>The new budget "confirms Dubai's ability to deal with the crisis, restore the pace of economic growth, strengthen social benefits and essential services," the media office said.</p>.<p>The government was counting on the six-month Dubai Expo 2020 global trade fair -- which was scheduled for October but postponed by one year -- to attract millions of visitors.</p>.<p>Tourism has long been an economic mainstay of Dubai, which welcomed more than 16 million visitors last year. Before the pandemic, the aim was to reach 20 million this year.</p>.<p>Dubai is renowned for its skyscrapers, including the world's tallest building, Burj Khalifa, but its key property sector has been hit since 2014 by lower oil prices.</p>
<p>Dubai said Sunday it expects to cut its budget to $15.5 billion in 2021 after its economy was impacted by a plunge in tourism and other sectors amid the novel coronavirus pandemic.</p>.<p>The emirate, one of the seven that make up the United Arab Emirates, had posted a record $18.1 billion budget for 2020.</p>.<p>"The newly-announced budget takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the Covid-19 pandemic on the global economy," said a statement by the Dubai Media Office.</p>.<p>Dubai foresees a deficit for the fifth year in a row, of $1.3 billion in 2021. In 2019, it had forecast a $700 million deficit for this year.</p>.<p>The emirate, which depends heavily on tourism and retail services, closed its border for several months due to the pandemic, resulting in a 10.8 percent GDP plunge in the first half of the year.</p>.<p>According to government estimates published earlier this week, the economy will likely contract 6.2 percent this year but is expected to see four percent growth in 2021.</p>.<p>The new budget "confirms Dubai's ability to deal with the crisis, restore the pace of economic growth, strengthen social benefits and essential services," the media office said.</p>.<p>The government was counting on the six-month Dubai Expo 2020 global trade fair -- which was scheduled for October but postponed by one year -- to attract millions of visitors.</p>.<p>Tourism has long been an economic mainstay of Dubai, which welcomed more than 16 million visitors last year. Before the pandemic, the aim was to reach 20 million this year.</p>.<p>Dubai is renowned for its skyscrapers, including the world's tallest building, Burj Khalifa, but its key property sector has been hit since 2014 by lower oil prices.</p>