As a global aviation and transportation hub, and a major tourism and retail shopping destination, Dubai’s economy has been hit by the impact of COVID-19. We expect GDP growth to recover this year from the sharp recession of 2020 triggered by the pandemic and low oil prices. However, we expect real estate companies' profitability to remain under pressure and leverage to be high. Absent a substantial recovery in revenue, companies are likely to focus on cost optimization, proactively managing their liquidity, and preserving their cash flows. Rated Dubai-based real estate companies still have good liquidity and access to funding, despite currently trying times.