UAE Defines Its Economic Resilience as Post-Pandemic Policies Fuel a Surge in Companies and Investment

Since the onset of the Covid-19 pandemic, the UAE has witnessed remarkable economic growth. The post-pandemic business environment has seen a 2X growth in the number of companies registered in the country in just four years. As of the middle of 2024, the UAE recorded 1.021 million registered companies, marking a staggering 152% growth from 405,000 companies recorded at the end of the first half of 2020. This massive growth trajectory is the result of a series of initiatives taken by the UAE government, along with reforms to boost the economy when global uncertainty loomed large.

On 2nd September, a recent UAE Cabinet meeting was chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai. The meeting highlighted the economic achievements of the country. The authorities discussed the impact of 30 economic decisions, laws, and policies that the UAE government implemented during and after the pandemic. All these measures fostered an economic environment conducive to the growth of business and foreign investments, leading to long-term economic sustainability.

Key Achievements of the UAE in the Post-Pandemic Period

During the period, one of the crucial achievements of the UAE was its record-breaking inflows of foreign direct investments. In 2023, the UAE attracted AED112 billion ($30.5 billion) in foreign investments. This cemented its status as one of the most attractive business destinations in the world. Globally, the country was placed just behind the US?in terms of the number of new FDI projects. It marked a 33% increase in such projects compared to the previous year. This surge in investments defines the growing resilience of the UAE on the global economic stage and its ability to compete with the largest economies of the world.

Sheikh Mohammed bin Rashid Al Maktoum stated that these were not just accidental achievements. They are the result of a clear and decisive strategy. He highlighted the efforts made by the government in positioning the UAE among the top five countries globally recording real growth in GDP, and within the top 10 in different global competitiveness indices.

The success of the country is also evident from its rapid transition towards a knowledge-based, innovation-driven economy. Over the past four years, the country has enacted more than 30 updated economic laws. This makes the country a compelling business hub for modern technology-based industries. Currently, the country hosts over 24,000 companies specializing in e-commerce. This further solidifies its position as a global leader in digital commerce.

Consolidated Government Financial Statistics for 2023 Reviewed

Along with the phenomenal increment in the number of companies, the UAE cabinet has also reviewed the consolidated financial statistics of the government in 2023. According to the report, the revenues of the government amounted to AED546 billion ($149 billion), while the total expenditures came to AED 402 billion ($109 billion). Substantial expenses of the government were made in sectors like public security, health, education, and social protection. With these investments, the infrastructure, social services, and overall economic environment continue to thrive in the UAE.

The UAE has also made significant strides in non-oil trade, achieving record figures. Foreign trade of non-oil goods in 2023 exceeded AED2.614 trillion ($712 billion) in 2023. Compared to 2022, this marked a 14.3% growth rate. The value of non-oil exports reached AED440 billion ($120 billion), marking a 16.3% growth compared to the previous year. This also marked a significant increase compared to the pre-pandemic levels. These developments reflect the commitment of the UAE to diversifying its economy and reducing its dependence on oil revenues.

The proactive approach of the UAE to international trade is also evident from its conclusion of 15 Comprehensive Economic Partnership Agreements (CEPAs) across four continents. These agreements have opened up new opportunities for the business community in the UAE. Four of the agreements are already in force. The economic partnership efforts are likely to result in a 33% increment in exports and contribute another AED153 billion ($42 billion) to the GDP of the country by 2031.

Professional Assistance to Ensure Compliance in the UAE

As the UAE attracts foreign investments and promote business-friendly policies, it remains committed to long-term economic growth. The UAE Foreign Direct Investment Trends and Predictions in 2024 reveal the investment potential of the country. The IMC Group continues to be a reliable partner for businesses expanding to the UAE, providing comprehensive assistance in establishing a commercial footprint in the country. With its foreign investment inflows and a robust legislative framework, the UAE is well-poised to maintain its status as a key economic player globally.