UAE: The Fastest-Growing Investment Destination
The UAE recently ranked as first regionally and ninth worldwide, in the Global Competitiveness Report 2021, swiftly excelling within the region for foreign investments.
The Global Competitiveness Center reported that the UAE also ranked first on a further 22 economic indicators globally. The priority for the next 50 years remains “accelerating economic development and unlocking opportunity, especially by encouraging small and medium-sized enterprises and instilling a culture of entrepreneurship throughout the country”.
The UAE has ambitions to attract foreign investors, particularly in sectors associated with the knowledge economy and advanced technologies, such as: Artificial intelligence (AI), the Internet of Things, Blockchain, innovative medical technologies, high-speed transportation, augmented virtual reality, self-driving cars and renewable energy.
The Global Foreign Direct Investment Report issued by the UN Conference on Trade and Development, states that the UAE ranked first in the Arab world and fifteenth globally in terms of its ability to attract foreign direct investment (FDI). Despite, the global pandemic, the UAE attracted FDI of $19.9 billion in 2020; a growth of 11.24% from 2019.
The UAE also ranked first in West Asia, receiving $36.5 billion (54.4 %) of the FDI inflows and first in the MENA region, receiving $49.4 billion (40.2%) of the FDI inflows.
The UAE Central Bank forecasts a 2.5% growth in real GDP terms and a 3.6% growth in non-oil GDP terms. The UAE government and all stakeholders are making efforts to double the national economy over the next 10 years, reaching Dh 3 trillion by 2031.
A Primary Investment Destination
The UAE remains a primary destination for foreign investment and has become not only a regional, but global hub for more than a quarter of the world’s top 500 companies. The UAE is one of the most advanced countries in the world in creating a regulatory environment that protects investors and supports commercial activity, while providing flexible and competitive legislations which attract foreign investment and contribute to business stability.
Free zones play a large part in this with an 11% increase in total trade in goods for free zones in 2019. The value of imports from free zones amounted to Dh340.6 billion in 2019 while free zone exports rose to Dh41.1 billion.
The UAE is also invested in the energy sources of the future, with renewable energy as a high priority. The Emirates Energy Strategy 2050 targets a mix of renewable and clean energy sources to ensure a balance between economic needs and environmental goals. The country will invest Dh600 billion by 2050 to ensure that the demand for energy and sustainable growth in the country’s economy is met.
Projects of the 50
Projects of the 50 sets into motion the key initiatives that will determine the nation’s economic success, with a particular focus on developing a knowledge economy. It is a comprehensive economic and developmental blueprint to showcase the capabilities available in the UAE to investors, entrepreneurs and talents of different nationalities and in various economic sectors.
Source: Gulf News
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