UAE’s diversification from non-oil trade at its peak
The UAE is on track to an unprecedented growth trajectory. The country is emerging from a shattering pandemic as well as a weak global economic recovery. The UAE began its monumental journey on the foundation of its tremendous oil reserves. But it is clear that UAE’s diversification to non-oil trade, a decision made over five years ago, is now seeing successful results.
UAE’s non-oil foreign trade came at a valuation of AED 1.637 trillion within the first nine months of 2022, a near 20 per cent rise from the same period as in 2021. In fact, the third quarter of the year saw a valuation of over AED 583 billion in non-oil trade. The total growth is expected to grow to AED 2.2 trillion by the end of 2022.
UAE’s Non-oil trade: Visionary Leadership
The World Trade Organisation predicted early on in 2022, a 3.5 per cent decline in international trade. However, Sheikh Mohammed bin Rashid Al Maktoum, the Vice President/Prime Minister of the UAE, and Ruler of Dubai, shared that the UAE saw a 19 per cent increase in international trade during the first nine months of 2022.
In his words, “The UAE is an exception in global trade and economy, as well as in services, infrastructure and international relations.”
The Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, spoke of the Projects of the 50, and the economic developments under their framework. The country’s foreign trade performance has become stronger because of the acceleration of the timelines of the trade agreements signing. This also includes the increasing partnerships with leading global markets.
UAE non-oil trade statistics, Q3 2022
UAE made history with over twenty-seven bilateral foreign trade agreements put in the works. The government has already established successful free-trade deals with countries like India, Israel, Indonesia, and South Korea, among others. Once the other agreements fall into place, it will lead to the emergence of a global economic strategy that can even battle long-term inflation.
Creating trade opportunities through diversification
The UAE has consistently been moving towards economic diversification to reduce their dependency on oil. The transition is one from a conventional, labour-intensive economy to something that is more technologically driven, skilled labor, and knowledge based. There has been an increase in investment in sectors such as tourism, renewable energy, aluminium production, telecom, import/export, aviation at both the Federal and individual Emirate level.
Tourism is one of the largest contributors to UAE economic diversification. The country is home to world-class airlines like Emirates and Etihad, both contributing to the rise of the tourism industry. The constant innovations in the aviation and hotel service industries are further bolstered by the influx of traffic with large scale events such as EXPO 2020 and the FIFA World Cup 2022.
UAE is the land of emerging opportunities
Dubai is currently seeing a major boost in foreign investment. The fact that UAE has one of the most open and dynamic economies is certainly a contributing factor. Additionally, there are several global business indexes that rank the UAE as a premier location attracting major international businesses. The country is also in the top 30 of the World Economic forum’s “most networked countries”, ranking ahead of all other GCC and Arab countries, as well as Italy, Turkey, and India.
There has never been a better time to invest in the UAE. With its high-paced developmental programs, the country is poised to emerge as a global soft power. Dubai especially is an ideal destination among expats looking for trade opportunities because of its liberal tax policies. And this is where Shuraa Business Setup is your trusted partner.
Shuraa offers end-to-end corporate solutions to investors who want to establish their business operations in the UAE. Our diverse range of services include company registration & licensing, PRO & Golden Visa, VAT, tax, and book-keeping, etc. The team consists of diverse corporate consultants who ensure that your Dubai business setup process is smooth & hassle-free.
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