The United Arab Emirates is expected to achieve a growth of 3.1% in its GDP.Economists have predicted an accelerated development for 2019, as non-oil revenue expands. This is a result of government measures introduced in 2018.
The UAE’s economy, the Arab world’s second largest, grew 0.8% in 2017, this growth was attributed mainly to oil output and price declines. Overall growth is projected at 2.3% for 2018 and 2.9% in 2019.
The non-oil sector contributes to more than 70% of the country’s GDP and as explained earlier the country’s growth in 2019 is mainly due to the procedures that the government have put in order to promote this sector. Economists have also spoken of a 20% increase in foreign direct investment is predicted after the approval of the law that was approved earlier last year which will contribute to the country’s GDP in 2019.
The UAE is bound to attract foreign investors with the new laws about long-term visas and initiatives to attract business owners into investing in the UAE.
- It was announced that as of 2019, highly skilled professionals and investors would be granted a 10-year visa; this will go a long way to boost investors’ confidence and drive them to invest more in the economy, especially real estate.
- Dubai and Abu Dhabi have also announced that they are exempting companies from administrative fines, as part of efforts to stimulate business growth and economic development. Other initiatives by the government are also being put into place to make it easier for businesses to function here in the UAE.
- Aviation and municipality fees will drop as the country aims to lower corporate and government charges, which in turn will create jobs and make it easier to do business in Dubai.
- Abu Dhabi have also announced an investment of Dh50bn into a three-year stimulus package that will also include initiatives to stimulate growth in the emirate creating at least 10,000 jobs for Emiratis.
The UAE government’s measures as mentioned about are all aimed at helping the economy to grow and diversification of the economy, whether it is reducing costs for doing business in the private sector, attracting and retaining talent or simplifying FDI laws and getting people to invest.
Several economic officials and analysts have stated that the UAE economy is headed in the right direction despite global headwinds. The country has come a long way in 2018 and survived several economic instabilities generated by the current geopolitical developments.
Founding chairman Khalaf Al Habtoor of the Al Habtoor Group which is one of the largest privately-owned business conglomerates in the region, said he expected healthcare and education to be among the UAE’s more promising sectors to invest in. (Source: https://www.arabianbusiness.com/politics-economics/408911-revealed-dubai-tycoons-view-on-local-global-economies )
The GCC provides a safe and welcoming environment for investments, healthcare and education being some of the more promising sectors in the UAE in particular.” (Source: https://www.arabianbusiness.com/politics-economics/408911-revealed-dubai-tycoons-view-on-local-global-economies)
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