ABU DHABI, Why is the Emirati economy competitive? I have always asked myself this question in my attempt to explore how the UAE’s economy successfully overcame the repercussions of the coronavirus (COVID-19) pandemic and will achieve a projected economic growth of 2.5 percent in 2021 and 3.5 percent in 2022, according to the Central Bank of the UAE.
The UAE’s economy stands on solid ground, being the outcome of solid foundations and acquired expertise, making it one of the most competitive and flexible economies in the region and the entire world.
The country’s economy is an open one, characterised by its high purchasing power, low tax rates, full investor ownership and project management freedom, stable exchange rates and, most importantly, the wise vision of the country’s leadership that supports investment and economic stability.
The coronavirus pandemic has affected the entire world, and some countries suffered from serious economic deflation. However, the UAE’s highly flexible economy managed to address the pandemic with professionalism and continued achieving its objectives according to a long-term vision.
Today, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved the Emirates Development Bank’s strategy with a financial portfolio worth AED30 billion for five years. The bank’s objectives include offering creative financial solutions to support small and medium-sized enterprises (SME) and strengthen the industrial sector, in line with the goals of the Ministry of Industry and Advanced Technology Strategy 2021-2031 approved last month, also known as the “Operation 300bn” strategy.
The ministry’s strategy calls on local and global investors to participate in the “Make it in the Emirates” campaign, supported by a series of legislations that protect investors’ rights, in addition to the country’s advanced infrastructure with the testimony of businessmen themselves and global competitiveness insititutions.
Despite being rich in oil resources, the UAE does not rely on it but has developed long-term plans for the post-oil era mainly focussing on adopting Artificial Intelligence (AI) in all sectors.
The country has doubled its allocated funds for research and development and established a ministry for industry and advanced technology and the first university of its kind for postgraduate studies in AI.
Competitiveness is a foundation for boosting economic growth as it increases GDP, which will create job opportunities, provide high rates of return on investments and maximise the value of exports.
The UAE leads many competitiveness indexes in the region, making it a key destination that attracts investors and capital.
Because there is no real competitiveness without innovation, the country has created a suitable environment that motivates innovation in all products and services sectors, being one of the key elements for increasing competitiveness.
The UAE has developed an environment that supports innovation, by investing in education, supporting scientific research, establishing research institutions and financially supporting them, encouraging companies to invest in research, development and innovation, establishing close ties with academia and the business community, and strictly implementing intellectual property rights and protection laws.
The fact that the UAE has an advanced infrastructure and a strategic geographical location, as well as the logistical readiness supported by appropriate laws that protect investors’ rights and the availability of human resources and the ability to recruit them makes it the “Investors’ Oasis” of the world.
Source: Emirates News Agency