1 November, 2020
UAE Identifies Sectors for Economic Growth
The Ministry of Economy in UAE has earmarked certain key sectors that will be driving the economic growth for the future.
According to the Minister of Economy Abdullah bin Touq Al Mari, who addressed economic drivers as part of the Annual Investment Meeting (AIM), UAE is ranked in the Top 20 destinations globally for FDI. A flexible economic recovery package, punctuated with 33 initiatives, have been laid out by the Ministry in this regard.
The key sectors to drive growth in future have been identified as entrepreneurship, tourism, retail, the digital economy, SMEs, e-commerce, startups, food security, Fourth Industrial Revolution tech and space.
The initiatives are expected to boost global competitiveness of the UAE economy, and to solidify a robust economic plan in line with Vision 2071. It is noteworthy that Euromonitor has ranked UAE as the 3rd most resilient economy post-covid and IMD has ranked Dubai as the 9th most competitive country in terms of economic performance, government efficiency and infrastructure.
The Minister also added that the future plan will involve a diversified economic strategy for UAE, which will completely move away from oil dependence by 2050. The diversification will involve focused opportunities in R&D, innovation, robotics, AI, block chain and cutting edge digital technologies. Within the region, UAE will be expected to lead in supply of Financial and Logistics services.
In addition, the Minister of State for EMEs and Entrepreneurship, Dr Ahmad Belhoul Al Falasi mentioned that SMEs contribute to over 50% of the GDP in UAE. The economic growth sectors involve SMEs as one of the key sectors, which is a welcome move. However, SMEs are also vulnerable to economic volatility due to their scale and being relatively new.
Recently, the UAE Government gave a green signal to 15 out of the 33 initiatives for implementation.