UAE is positioned strategically between Europe, Asia and Africa, and is just an eight-hour flight away from around half of the world’s population. The country is apt to become global economic hub – a fulcrum for trade, exchange, innovation and value creation.

'Projects of the 50', initiatives of economic, social and developmental sectors have set the national priorities for the next 50 years. These further deep rot approach by UAE to emerge as an attractive location for foreign investment, with new regulations, laws and incentives drawing global investors, entrepreneurs, innovators and professional talents. A total of AED58 billion has been allocated in the UAE’s 2021 budget to initiate the programme, which will bolster UAE’s advantages of stability, favorable regulation, strong financial reserves, large sovereign wealth funds and access to resources at competitive prices.

The UAE’s leading performance the COVID-19 outbreak reiterates its strong economy and ability to adapt to global challenges. UAE has, in fact, recorded growth during the pandemic.

FDI into the UAE amounted US$19.88 billion in 2020, a growth of 44.2 percent from 2019. The balance of cumulative inward FDI amounted to US$174 billion, a growth of 12.9 percent in the same period. The country also ranked first in the Arab world and 15th globally in the Kearney FDI Confidence Index for foreign direct investment in 2021, advancing by four places in 2020. According to the results of the Global Foreign Direct Investment report for 2021 issued by the United Nations Conference on Trade and Development (UNCTAD), the UAE ranked first in the Arab world and 15th globally in terms of ability to attract FDI. The report stated that the UAE attracted foreign direct investment amounting to US$19.9 billion, with a growth rate of 11.24 percent on 2019.

Here’s what makes the UAE resilient and making it a safe destination for global investment regardless of circumstances:

Capital Inflows: The UAE’s economic strength continues to attract FDI from around the world. Its GDP was US$421 billion in 2020 and it ranks second globally in terms of financial assets from sovereign wealth funds. It also ranks 11th globally in Logistical Performance (first in the region), 12th globally in Infrastructure Quality (first in the region), 13th globally in the Flow of Foreign Direct Investment Issued for 2020 (first in the region), 16th globally in the Ease of Doing Business report (first in the region), and 25th globally in the World Economic Forum’s Global Competitiveness Report (first in the region).

Commodity Trade: The UAE is a global and regional leader in commodity trade, ranking third in the world in re-exports. It is also among the most important 20 global exporting countries and among the list of the most important 20 countries in global imports.

Sophisticated Infrastructure: Investors into the UAE also benefit from infrastructure, which benefited from additional AED4.5 billion in the 2021 budget. The UAE advanced five ranks in the Infrastructure Index and ranked 28th globally in the World Competitiveness Yearbook 2020 report issued by the IMD World Competitiveness Centre. 

In the same report, the UAE ranked third globally and first regionally on the investment in infrastructure projects and investment in facilities in past years. In addition, the UAE ranked first in the list of countries with the best electronic infrastructure in the world and 31st for quality of digital life in 2020.

Free Zones: There are more than 40 specialised free zones in the UAE, each having strong relations with regional and international trade associations. It is a member of the World Trade Organisation (WTO) and the Greater Arab Free Trade Area (GAFTA) and has free trade agreements with the European Free Trade Association, Singapore and the European Union. The future goal is to sign eight more trade agreements. It has signed major trade and international treaties, and nearly 134 agreements to protect and boost Investments with its business partners.

Competitive Costs: UAE is known for competitive financing costs, high levels of liquidity, a strong banking system, low inflation, low tariffs ranging between zero and 5 percent for almost all goods – and no commercial taxes on companies or income. The UAE has signed 117 valid double taxation agreements with countries in five continent. The UAE also has no restrictions on foreign exchange or the movement of funds and remittances.

Legal Landscape:  The UAE’s regulatory environment has been constantly modified to support business and investment. The state, for instance, has enacted a law to regulate and protect industrial property for patents and industrial designs.

The country has made the most significant step in 2021 allowing 100 percent foreign ownership of companies in a wide number of sectors by removing the need for an investor to secure a local partner.

Demonstrated in 'Projects of the 50', the visa and residency system of UAE is also constantly revised to attract skilled professionals in key areas, particularly in health, scientific research, technology and cultural sectors. The UAE is also a member of the World Intellectual Property Organisation, where it protects intellectual property rights and trademarks, and upholds anti-piracy laws.

All these are the reasons that have put UAE on 16^th rank globally in the World Bank’s Ease of Doing Business report for 2020 and the first globally in Paying Taxes and Obtaining Electricity. It was second globally in Building Permits, and 10th globally in Registering Property and Protecting Minority Investors.

Agility: The world is witnessing a changing geo-economic map. It is in this context that the UAE is heading forward to become a competitive economic power with genuine global influence where investors can nurture, launch and export world-changing ideas.

In just 50 years, the UAE has advanced to become economic leader and now 'Projects of the 50' provides an integrated means of achieving it. By creating the desired commercial and legal environment and forging international partnerships with like-minded, future-focused countries, the UAE will prove to be a catalyst for regional and global growth.

 WAM