Economic Growth in the United Arab Emirates

The UAE economy continues to grow and the overall economic outlook is positive. The UAE’s reserves of oil and natural gas both rank in the top 10 largest in the world. The UAE is the third fastest growing economy in the GCC. The UAE has diversified its economy to help to make the country’s revenue sources more balanced and create a sustainable economy that can withstand long-term oil price volatility. Hydrocarbons provide the largest single source of income for Abu Dhabi. Dubai’s hydrocarbon reserves are far more limited which has led to successful efforts to diversify their economy into the region’s business, logistics, media and leisure hub. The award of EXPO 2020 to Dubai is forecast to boost the economy by USD 23 billion. This will result in about USD 8 billion worth of opportunities across many sectors particularly in hospitality and construction. Other positive factors for growth include:
  • well-established infrastructure
  • a strong banking system
  • a stable political system
  • the number of free trade zones that can allow 100% foreign ownership and a nil taxation regime
  • ongoing and new developments including Sadiyaat Island in Abu Dhabi, Mohammed Bin Rashid City in Dubai, Dubai South, Al Maktoum Airport, Dubai and the Fujairah Master Plan

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