The global economic growth will recover exponentially in 2021, affirmed Sachin Gupta, General Manager of Gulf Pinnacle Investments (GPI), adding that the ongoing progress in the COVID-19 vaccine development initiatives will bring back investors' trust and confidence in the market.

In a recent interview with UAE daily Gulf Today, Sachin Gupta stated that the global economy is going through a challenging environment due to the repercussions of the COVID-19 pandemic. Gulf Pinnacle Investments (GPI) is the UAE subsidiary of Gulf Pinnacle Logistics that was established in Dubai in the year 2014. With four subsidiaries, the private limited company operates in the investment services sector.

Mr Gupta hailed the UAE government's efforts towards early recovery from the pandemic, noting that it was among the first markets which implemented effective policy measures and economic stimulus.

Stating that GPI effectively survived the pandemic shocks with the help of a well-drafted contingency plan by the management, Mr Gupta expressed confidence in the steady growth of the group across all business verticals in the coming days.

“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, in the interview with Gulf Today.

Responding to a question, he expressed gratitude to the UAE and Dubai governments, adding that their stimulus packages and relief measures helped in the quick economic recovery of the businesses in the country. Mr Gupta noted that over the past six months, the government's policy initiatives have played a crucial role in the UAE economy from the global slowdown triggered by the COVID-19 pandemic. Dubai was among the first cities in the world that gradually reopened its economic activities and businesses for both investors and tourists while adhering to strict safety health measures.

Mr Gupta welcomed the reopening of the global economy, noting that it will positively impact the growth of key economic sectors including the logistics and transport industry. However, he affirmed that the recovery will be gradual and it may take 2-3 years for the global economy to raise up to pre-COVID levels.

Talking about the latest report of the International Monetary Fund (IMF), he reassured that the UAE economy is expected to contradict by 6.6% this year, while it will grow by 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,” Mr Gupta added, as quoted by the UAE daily.

He regarded the quick progress made by the medical sector on the development of COVID-19 vaccines as a major catalyst for restoring investors' trust in the global economy. He revealed that as many as five major groups have shown significant progress on the COVID-19 vaccine, achieving a success rate of up to 95% in less than a year.

He further affirmed that the Expo 2020 Dubai will drive a growth momentum in 2021, adding that it will be a gamechanger for the UAE economy as it will boost positive developments across various business fronts.

"More than 200 participants, including countries, corporations, multinational organizations and educational institutions will attend the six-month-long mega event and benefit the local economy,” Mr Gupta added.

Expecting progressive days ahead for GPI, Mr Gupta expressed confidence in a steady growth in line with the improvements in the global economy. He stated that GPI's business model has a direct correlation with the global economy.

"If there is a slowdown worldwide, we may have to rationalize our growth strategy. 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 the ongoing year,” he added.

According to a previous media report, Sachin Gupta noted that the COVID-19 pandemic has affected the global trade, resulting in a disruption in supply chains, shipping networks and ports. With the quick progress in COVID-19 vaccine development in recent weeks, the situation appears to be improving. He confirmed that the industry has survived the shocks and challenges triggered by the pandemic.

"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 stated.

Responding to a question about the pandemic's impact on logistics and business, he raised concerns about an urgent need to increase investment in risk management and emergency response preparedness in the transport and logistics sector. He explained that operations, finances, safety protocols and working practices and procedures have been adjusted according to the policies and advisory of the UAE government, which helped in minimizing the impact of the pandemic.

The UAE recovery was boosted by effective policy measures and government stimulus packages, noting that reopening of the global economy will have a positive impact on leading sectors such as logistics and transportation.