2016 saw a major shift in oil prices across the globe, tipping the economy in the Middle East on a scale almost equal to the slowdown during the global economic recession of 2008. So much so that, for the first time in its history, the largest single company in the world, Saudi Aramco is about to list its shares on the stock market.
But, as a contrast and a model state for the region, UAE has escaped widely unscathed, even though a significant percent of the nation’s income still comes from the export of crude oil.This is largely due to the visionary diversification policies adopted by the government since the nation’s founding in 1971.These policies have helped steer the economy away from oil, transforming UAE into a major financial and retail hub, and a popular tourist destination.
Sustainable Stable Growth
Of the seven emirates in the union, Dubai has been at the forefront of diversification, proactively adopting economic policies that, at a time, seemed almost revolutionary for the region. But as reliable studies have documented, and from everything we’ve learned in hindsight, diversification is one of the most sure-fire means to stabilize the growth and development of a country, wherein if there is slowdown in any one industry, others can be used to maintain growth rates.
Below, we take a look at the major industries and sectors that have helped Dubai’s economy to realize this stability and guide the nation into the new age.
1. Construction, Retail and Tourism
Dubai’s uninterrupted growth has largely been a result of its construction, retail and tourism sectors. Dubai has been very successful at harnessing these industries and marrying their causes to build some of the most spectacular man-made luxury tourist and retail establishments in the world. This has transformed the city into a popular retail and tourist hub, while also creating job opportunities for millions.
2. The Next Frontier
Technology can drive the growth and development of a country like no other industry. The importance of technology lies not just in itself as a sector, and the job opportunities it affords, but in supporting and realizing the services and ambitions of a host of other industries. To strengthen the technology infrastructure of the country, Dubai’s administrators have implemented a range of effective educational, financial and infrastructural policies.
3. Investing in Innovation
We are living through history’s most transformative ages. The most powerful economies in the future would be ones that can evolve the fastest, harness never-before-seen resources and contribute to the growth of new technologies.
This means that innovation is now the most valuable human resource in the planet. To encourage innovation and to empower its citizens to this end, Dubai has invested in large scale skill development and entrepreneur-encouragement policies to build an effective and talented work force that can guide the nation towards growth and success in the 21st century.
4. Free Zones
Through its many Free Zones, UAE has opened doors for investors, entrepreneurs and companies from across the world to build their business in the Middle East, without having to deal with a lot of the taxes and bureaucratic quagmires usually involved with offshore company incorporation.
With a thriving retail and construction industry, highly efficient transportation networks, and the largest concentration of free zones in the country, Dubai has been leading the cause for entrepreneurship and business development in the region, offering up some of the most fertile grounds for company formation and business setup in the world.
Dubai has high expectations from Expo 2020. The Expo is a colossal universal exposition or a ‘world’s fair’ that occurs every three years, and securing its bid to host in 2020 was a big win for Dubai. One of the biggest illustrations of Dubai’s progressive and bold economic policies, the Expo is supposed to pump in over $40 billion dollars into the UAE economy and result in over 277,000 jobs.
If you’re an entrepreneur or a company looking to take advantage of the fabulous growth opportunities that Dubai offers, it would be wise to seek the assistance of an experienced company formation agency.