During the first 50 years of its founding, the UAE has managed to transform its national economy from a simple economy based on oasis agriculture, fishing, the trade of dates and pearls, to one of the fastest growing economies in the region and the world, and the most prepared for the future based on The knowledge economy and innovation, which will qualify it to achieve more economic and developmental jumps in the coming decades.
Although oil played a major role in the development and growth of the UAE economy, the forward-looking vision of the leadership of the UAE has, for decades, adopted multiple plans and strategies to diversify the national economy away from the fluctuations of oil prices, until the country turned into a global financial center and an economic capital taken by major international companies. It operates in various sectors as its regional headquarters, in addition to the great demographic diversity of the country in which residents of more than 200 nationalities live and work in coexistence and harmony.
What is more, the UAE, with all its unique geographical location, economic components, high-level infrastructure, laws and legislation stimulating investment, has become a major gateway to markets of about 3 billion people, by taking advantage of the air freight lines that connect the country with all parts of the world. And through the network of ports managed by Emirati companies and spread in the continents of the world, as well as the infrastructure of airports and ports in the country, which is among the most developed in the world, supported by an integrated logistical services network.
The UAE continues to launch new industrial sectors, reflecting a vision that establishes a pioneering industrial thought for the future, with a focus on industries that depend on advanced technology and the solutions of the fourth industrial revolution, within an approach based on stimulating innovation and adopting advanced technology to enhance industrial production and improve the performance of various economic sectors in the country. And strengthening the state’s drive towards adopting economic diversification and knowledge economy.
In order to build a strong and solid economy, the industrial sector is a main pillar for it, along with other vital sectors such as food security, the energy sector, the financial and business sector, so that the UAE becomes a major industrial center in the region and the world, strengthening its issuance of indicators of competitiveness, prosperity, stability and sustainable development regionally and globally.
The prestigious economic position that the UAE has reached at the regional and global level did not come from a vacuum, but rather thanks to the creation of the legislative structure necessary for the growth and prosperity of the economy, through laws and legislation to support business and investments in various economic fields.
At the beginning of the new millennium, the state enacted a federal law to regulate and protect industrial property for patents and industrial designs and models, and the relevant authorities issued a package of decisions and circulars to frame the corporate governance process.
The UAE government has also adopted a bankruptcy law in order to achieve a balance between the interests of creditors vis-à-vis debtors and enable them to obtain their rights.
The insolvency law is a unique legal case that reflects the leadership of the legislative framework in the UAE, by granting the debtor a term to pay his debts without this term causing serious harm to the creditor.
The amendment to the new companies law issued in the year 2020 is the latest in the process of developing the investment legislative climate in the country, as the amendments allowed foreign entrepreneurs and investors the possibility of establishing and fully owning companies, and the requirement that a foreign company wishing to open a branch in the country was canceled. To have an agent who is a citizen of the state.
The matter does not stop at creating a legislative environment conducive to economic growth and prosperity, but the UAE enjoys great economic stability and a promising investment environment, due to its strategic location, strong financial reserves, large sovereign wealth funds, strong and continuous government spending, in addition to providing energy at competitive prices.
For example, 58 billion dirhams were allocated within the general budget of the Union in 2021 as expenditures in order to complete vital national projects, and spending on comprehensive and sustainable development projects between 2016, 2017 and 2018 amounted to 1.277 trillion dirhams.
The infrastructure and economic sector in the country also received 4.5 billion dirhams from the 2021 budget, and the UAE advanced 5 ranks in the infrastructure axis and ranked 28th in the world in the Global Competitiveness Yearbook 2020 report issued by the Global Competitiveness Center of the International Institute for Administrative Development in Lausanne, Switzerland. .
The UAE also ranked third in the world and first in the region in terms of the strength of investment in infrastructure projects and investment in facility facilities over the past years, as part of the Infrastructure Index 2020, and in addition, the UAE ranked first in the list of countries with the best in electronic infrastructure at the level of The world and 31st for the quality of digital life in 2020.
There are many free zones spread across the UAE specialized in the fields of finance and business, and information technology, in addition to the creative economy sectors such as media and artistic production.
Small and medium enterprises contribute 62% to the state’s non-oil GDP, and employ about 85% of the workforce in the private sector.
During the years 2017 and 2018, the rate of growth ranged between 5 to 7%, and the UAE recently issued a package of initiatives to support small and medium enterprises, including reducing the rate of return that commercial banks receive from the financing provided to project owners, reducing the guarantees required by the bank, as well as allocating a specific share of Public finances for banks for the benefit of entrepreneurs.
The UAE also continues to take advanced steps to support and empower the small and medium enterprises sector, by strengthening the partnership between various entities to provide an incubating environment for entrepreneurship, the most prominent of which was the strategic partnership between the ministries of economy, human resources and Emiratisation, which aims to achieve many goals, including strengthening the role of leadership Business and self-employment.
It was natural, in light of the forward-looking vision to enhance the leading economic position of the UAE, to be at the top of the region in global indicators and to have the highest credit ratings from the most prestigious global institutions. the National.
The UAE also ranked ninth in the world among the most competitive countries, and for the fourth consecutive year it topped the countries of the Middle East and North Africa region in the Global Competitiveness Yearbook 2020 report. The first in the Arab world for the seventh year in a row.
According to a report by the “New World Wealth” Foundation, which specializes in wealth research, the fortunes of millionaires and billionaires in the UAE increased by $ 45 billion / 165.15 billion dirhams / in the second half of 2020, registering an increase of 4,276 millionaires with wealth exceeding one million dollars, and one billionaires by End of December 2020.
There are also 87,000 millionaires and 13 billionaires living in the UAE, with a total wealth of $ 870 billion / 3.2 trillion dirhams / by the end of last year, up from 82,724 millionaires and 12 billionaires, and more than 4,500 wealthy people moved to reside and live in the UAE between 2000 and 2020.
The UAE is the largest wealth management center in the region with assets of about $ 110 billion, mainly because it is the largest safe haven in the Middle East and North Africa region, with an advanced economy, a first-class healthcare system, low tax rates, and a center. International business, making it an ideal destination for venture capitalists and investors from all over the world.
The matter does not stop at this point, as the UAE provides integrated packages of facilities to stimulate economic growth and prosperity, based on the fact that the UAE is an economic capital in the region and an ideal environment for embracing various economic activities and doing business, and the UAE economy has an exceptional support system that enhances its attractiveness to attract talent, expertise and entrepreneurs. Ambitious economics from inside and outside the country.
The country enjoys great economic stability and a promising economic environment, and it has the traditional and vital energy sources required for all economic activities. It also has an advanced digital infrastructure in transport, communications and services, which is the best and most integrated in the region, and there are 21 free industrial zones distributed in the various regions of the state, The UAE was also ranked among the top in the world club in the most important indicators of competitiveness of the economic sector and doing business for the year 2020.
The state also possesses a land, sea and air transportation system that is the most efficient and the widest geographically in the region, and the fastest to reach anywhere in the world, and the state also provides unprecedented advantages in the region and the Arab world for residency and nationality, especially to investors, innovators, innovators, experts, scientific talents, and their families.