The UAE Economy Trends in 2022: Halfway Through
As we check in halfway through the year, 2022 has been an important year for the United Arab Emirates. Dubai hosted Expo 2020 which ended in March 2022 and is already planning to reuse the grounds and facilities to introduce the world’s first smart city. And if that’s not enough, the UAE economy is predicted to grow 5.4% in 2022, followed by 4.2% in 2023.
In this article, we’ll preview the UAE economy for the rest of 2022 and explain why now is the best time to invest in the region.
UAE Economy Review 2022
It goes without saying that many countries and regions have struggled due to recent global events, such as the COVID-19 pandemic and the war in Ukraine. However, the UAE specifically boasts a number of advantages that made it able to withstand outside pressures over the last few years:
- Diverse economy
- Expo 2020 Dubai
- Foreigner-friendly
Diverse Economy
Unlike many countries, the UAE doesn’t rely on just one sector for income. With a solid base in the tourism, real estate, oil and transportation industries, the UAE is able to maintain a strong economy. The IMF itself has stressed the connection between diversified economies and sustainable economic growth; countries that are strong in different sectors are less susceptible to drastic economic shocks.
Many people think of the MENA region as entirely oil-dependent, but that is precisely what sets the UAE apart. Recent government policies are looking to increase investment in new, non-energy industries like technology and manufacturing.
Expo 2020 Dubai
While many countries tightened foreigner entry requirements or even discouraged tourism, the UAE used the world-renowned Expo 2020 Dubai to bring more tourists to the area, welcoming more than 22 million visitors in just 6 months.
But the development doesn’t end there. Instead of destroying the site and buildings from Expo 2020 Dubai, it will soon become home to the world’s first smart city, hosting start-ups and large, multinational corporations alike.
Foreigner-friendly
With a vibrant expat community and policies that encourage business development in the region, the UAE has worked to ensure that foreigners see the UAE as a solid choice for investment. The country has implemented measures supporting small to medium-sized enterprises (SMEs) that make up a significant part of the country’s economy, making it easier for them to access funding.
They’ve also implemented fiscal measures such as a new 100% foreign direct investment law and have continuously implemented measures to make it even easier for companies to do business.
Your Next Opportunity in the UAE
Our team of UAE business experts at Europe Emirates Group has the expertise you need to take advantage of everything that awaits in this exciting time for the Emirati economy. Get started with us today.
Written by
Adrian Oton
CEO, Europe Emirates Group
