For a long time, the UAE was one of the fastest growing economies in the world, fuelled by visionary policies and multi-faceted yet focused efforts from the government. This helped transform, what was a collection of trading communities into a sought-after luxury destination and one of the major global economies, all in the matter of a few decades. Over the past few years, this growth has displayed signs of slowdown, especially due to dropping oil prices.
But now, triggered by a string of favourable factors, starting with the recovery in oil prices to the country’s ongoing preparations for Expo 2020, improved international tourism, and increase in foreign investments, the economy is picking up growth once again. According to latest reports, UAE’s GDP is forecasted to grow at the rate of 4%-5% during the years 2017-2020. In the following pages we take a deeper look at the factors responsible for this rebound and what its direction means for the country’s future prospects.
Of the many factors that contributed to UAE’s unprecedented growth, none was as impactful as the country’s large scale diversification policies that redirected the economy from its dependence on oil towards a more inclusive approach. The major result of these initiatives are the many Free Zones established across the country that offer global enterprises and entrepreneurs attractive business formation opportunities and benefits.
Sustainability and Flexibility
What sets the UAE apart from others that have set off on path of economic advancement is its focus on sustainability and flexibility, which has helped the country integrate itself more smoothly into the wider global economy. This unique approach to holistically developing its business ecosystem has helped the nation break into the top 10 positions in the World Competitiveness Rankings in 2017.
This has also triggered a sense of confidence in the residents, with nearly 92% of a reviewed section of the UAE population agreeing that the country is on a path of economic growth. The strong global trade over the last couple of years was especially manifested in Dubai, which has witnessed significant increases in its total trade. This is because Dubai’s Free Zones, with their incredible infrastructural provisions and close proximity to international seaports and airports, are best placed to empower the businesses setup in uae premises to effectively cater to the increasing demand in the markets in GCC, Asia and Europe.
The truly exciting fact is that the country’s transformation isn’t yet finished. UAE Vision 2021, an initiative of the UAE Government to mark the fiftieth year of the union, sets out guidelines for the comprehensive socio-economic development of the country into a diversified and knowledge-based economy. This is set to further stimulate the nation’s evolution into a more cohesive and complete ecosystem, while engaging the global economy at wider scale.
If you are a business leader or an entrepreneur planning to set up a business presence in the UAE and would like some support through the legal and administrative processes and guidance on how to go about the whole endeavour without hassle, it would be wise to seek the help of a company formation agency.