Dh2t trade: Prepare yourself for a new era full of opportunities in UAE
50 new offices will be set up around the world to meet the 2025 trade target.
The UAE is very aggressively building a strong and resilient nation for tomorrow, the foundations of which are laid out today.
Even as social media is flooded every day with new projects and programmes, the possibilities of a better tomorrow seem unending. Recently, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, launched a new Dh2 trillion target for the volume of Dubai's foreign trade by 2025, which will be supported by establishing 50 offices around the world. Each of these offices is tasked with promoting Dubai's unrivalled trade, tourism, and investment offerings through intensifying and unifying of external marketing efforts.
The new target is set and the most diversified nation in the region is all geared up to achieve it; entrepreneurs across the UAE are very enthusiastic about the same.
The UAE's reliable, secure, and transparent legislative environment has always been an attraction for investment in the region. Constantly updated infrastructure has been another key attraction. The government's initiative to invest in infrastructure and an ecosystem which is conducive for businesses of the future will not go unnoticed internationally.
In addition, for the past couple of years, the UAE has implemented a number of reforms to facilitate reducing the pressures of cost of operations for businesses, benefitting the overall economic growth of the UAE.
Sameer K Mohamed, managing director of Jaleel Holdings, said the UAE wears the crown of a leading business-friendly market, and remains a great place to live and work in the Middle East.
"The country acts as a magnet for attracting the best in terms of investments and talents; thereby making it easier for companies to operate their businesses successfully. This new initiative focuses on making the economy more talent and future business friendly, which is the need of the hour."
The non-oil sector will drive the UAE's growth in the years to come due to the government's economic diversification efforts introduced recently, according to the International Monetary Fund (IMF).
In its latest projection for the UAE economy, the Washington-based financial institution said that non-oil sector growth is set to overtake the oil sector in 2019 and 2020 as economic reforms started paying the dividends.
The IMF's latest projections showed that the UAE's non-oil sector will grow to three per cent in 2020. Consequently, the oil GDP growth is forecast to slow down from 2.8 per cent in 2018 to 1.5 per cent in 2019, and 1.4 per cent this year, when Expo-led non-oil sectors such as tourism, aviation, retail, hospitality, real estate, and construction will give fillip to the economy.
In addition, exports and re-exports will also greatly contribute to the country's economy.
Prominent, exporter and importer of Indian foodstuff trading chain, Dr Dhananjay Datar, chairman at Al Adil Trading, said the UAE is known to walk the talk, recent reforms launched by the wise leadership is a testimony of how the UAE is encouraging the existing businesses at the same time training the entrepreneurs for tomorrow.
"Non-oil sectors like trade, tourism, and investments are interlinked and will globally attract businesses to open new routes here as the UAE is the most progressive gateway to the region."
The UAE is forecast to achieve an average real GDP growth rate of 3.8 per cent between 2019 and 2023, supported by an increase in investment flows and private consumption, according to new analysis from the Dubai Chamber of Commerce and Industry.
The analysis identified other key factors that are expected to drive economic activity in the UAE, including expansionary fiscal policy and a growing number of infrastructure and construction investments in the run up to Expo 2020.
A recovery in private consumption and sales of highly cyclical consumer products is expected, extending to products such as vehicles, furniture, household appliances, and medical equipment.
Meanwhile, robust growth in investment is projected on the back of government fiscal stimulus.
Real GDP for the UAE's non-oil sector is projected to grow by an average of 4.1 per cent between 2019-2023, compared to the 2.8 per cent accounted for in the 2014-2018 period. Momentum behind the UAE's GDP growth over the next five years will likely be led by the country's transport and communication sector which is set to record a GDP growth of 7.9 per cent, followed by construction at 4.2 per cent, and real estate and business services at 3.8 per cent.
In addition, recent measures to reduce the cost of doing business in the UAE are expected to support activity within the country's SME and private sectors in the near future. The Middle East and North Africa accounts for the largest share of Dubai's exports at 41 per cent, followed by "Emerging Asia" with 26 per cent, Sub-Sahara Africa at 18 per cent, CIS at one per cent, and Latin America at 0.8 per cent, trade data for the first nine months of 2018 revealed.
Logistics fuelling growth, efficiency
Mobility and smart logistics are fuelling growth and efficiency across multiple sectors and are critical for future economic growth, said Gaurav Biswas, founder and CEO of TruKKer.
"Mobility - within the logistics sector - is undergoing rapid innovation and upgrades; there is a fundamental change in the ways we consume food, products and services now," he said.
"There are opportunities in efficiency improvements and value creations that come from the shared economy principles. Businesses like Careem and TruKKer are creating significant efficiencies and also have a wider socioeconomic impact on improving lives and working conditions for thousands. Dubai's assets like Jebel Ali port, DXB airport, Emirates airlines, the RTA and multiple government-backed focus groups are helping to put the city in the center of global trade. I am sure the city will do a stellar job at Expo 2020 and cement its position as the economic hub for Middle East, Africa and South Asia."
Biswas noted that Dubai and the UAE have been synonymous with innovation, efficient governance, and execution focused planning.
"I have no doubt that the visionary leadership of Dubai will be able to achieve its target in further diversification of its economy."
The country has done phenomenally well in creating a world-class infrastructure and platforms that aid business and trade. The world is changing rapidly and the next era will belong to organisations, cities and countries that adapt with the change effectively and stay ahead. Technology based innovation is in the center of this. Dubai is at the forefront of such innovations with multiple government-backed initiatives that promote entrepreneurship that attracts top talent and creates an ecosystem for ventures to thrive."
Tourism to supplement trade
Dubai's tourism has seen an impressive growth due to the country's dedication and vision for its infrastructure, noted Firas Al Msaddi, CEO of Fam Properties and Fam Living.
Dubai's tourism industry closed a successful decade at the end of 2019, with an almost five per cent increase in tourism volumes. Over the past decade, the city has consistently found itself among the top 10 most visited cities in the world, and has also risen to prominence as an important travel hub. The UAE government's new policies to boost tourism have also made an impact and will continue to do so in the next few years. The infrastructure, several hotels, and holiday homes have also added to the city's charm and its ease for tourists.
"The city has grown so massively in the past decade, with all sectors of the market simultaneously growing," Al Msaddi said.
"The concept of initiating Dubai's marketing efforts in tourism and investment comes as a great concept. Dubai has a proven record of creating world-class wonders. But, more importantly, Dubai has always envisioned the future. Having a vision for the future is the cornerstone of any future success and the revelation of the Dubai Future District and investment enhances the country's already established position as a preferred destination for global talent, entrepreneurs, and organisations.
Dh2 trillion target for non-oil economy is 'achievable'
Bharat Bhatia, CEO of Conares, noted that the Dh2 trillion target for the non-oil economy by 2025 is "achievable".
"With the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, we are very confident that all efforts will be put forth from each and every department," he said.
"This will create lots of job opportunities for local and expat populations, and, in particular, to the younger generation. Today, we need young talent to drive the new era in the next 20-25 years from now."
He also noted that trade and tourism is currently the key to the current economy, and that there is a need to create more opportunities to enhance the same.
"We will need a more liberal approach towards attracting more tourism. Investments in this sector are very important to attract talent; the industry adds value to the economy and it is a long-term commitment. Dubai needs long-term committed entrepreneurs, which is the only way to encourage industries. We also need to add value with a proper protection in industry to attract lots of investments in the region. In effect, all this will help achieve the desired target of Dh2 trillion easier, as industry is always the backbone of any economy across the globe."