The UAE Economy
The Local Economy in the UAE
The UAE has a number of crucial competitive advantages. They include a robust physical infrastructure that boasts a strong network of roads, major ports in every emirate and air links that include Dubai government-owned Emirates, the largest airline in the Arab World and rapidly-growing Etihad out of Abu Dhabi.
Other secrets to success for the UAE economy
The UAE offers excellent access to qualified Emirati and expat workers. The UAE also has a relatively low cost of borrowing for firms looking to set up or expand in the Gulf.
The Emirati authorities have been striving to improve the country’s ease of doing business such as aiming to incorporate blockchain in 50 per cent of government procedures.
Emirati banks are more active in lending to private enterprises than their regional counterparts and offer a greater variety of financial products and services. The cost of borrowing in the UAE is relatively low for companies looking to begin or expand their operations in the Middle East as the governments of the individual emirates are currently recognising the importance of supporting small and medium-sized enterprises (SMEs) to help boost its non-oil economy.
The promising future of the UAE economy
The UAE’s favourable business environment, transparent regulatory system and central geographic location give it a competitive edge as a business destination on both a regional and global level. Dubai, in particular, has emerged as a significant access point for foreign investments, with many companies using the emirate as a platform to enter the wider region. With two-thirds of the world’s population an eight-hour flight or less from Dubai, the UAE’s strategic position at the crossroads of a booming India, Africa and Asia trade triangle also grants it access to high-growth emerging markets. As the government continues with its ambitious economic diversification plans beyond oil and natural gas, foreign direct investment (FDI) opportunities will open up in transformational and other heavy industries. There is a broad range of foreign investment incentives, such as low corporate taxes and 100 per cent foreign ownership. Read about this in detail by downloading our free guide.