The economy of the UAE happens to be one of the most open on the planet right now. In the past, we have seen conventional welcoming trade and business when vessels sailed to the Indian subcontinent and around the East African coast to Mozambique.
Right now, one can consider the UAE to be a strategic center having business-friendly free regions plus a quickly developing economy. The UAE GDP had been $359 billion in 2020. It showcases the abundant natural resources available in the UAE having 10% of the total oil reserves on the planet along with the fifth-largest resource of natural gas.
At present, oil exports consist of approximately 30% of the total gross domestic product of the UAE which happens to be the mainstay of the country’s economy. Besides being a significant energy supplier, the UAE has become an increasingly relevant energy consumer these days. The country will go on to continue its tradition of accountable energy stewardship while developing and diversifying its economy. Moreover, it will likewise accelerate the development of surplus sources of hydrocarbon and play an important part in the development as well as the implementation of alternate sources of energy.
Opportunities for trade are created by diversification
The UAE introduced an economic diversification agenda for minimizing dependency on oil plus converting its economy from a labor-intensive and conventional economy to one that is based on technology, knowledge, as well as skilled labor. The individual and federal Emirate governments have made heavy investments in sectors like aluminum production, re-export commerce, renewable energy, telecommunications, tourism, aviation, as well as advanced technologies.
The UAE introduced the Strategy for the Fourth Industrial Revolution in the year 2017 for the purpose of strengthening the position of the country as an international hub for 4IR innovation and technologies. Young individuals are responsible for these types of innovative initiatives assuming responsible leadership roles in government, business, science, etc. As a matter of fact, Arab youth look to this country increasingly as one of the top destinations to reside, citing the extensive range of job opportunities in the country as the most important draw.
Here, we like to mention that tourism is accountable for the success of the economic diversification of the UAE. The top-quality airlines of the UAE such as Etihad as well as Emirates have played an important part in the development of the tourism industry and have contributed to the economy of the country significantly.
The economy of the UAE is amongst the most dynamic and open economies on the planet. Several international business indexes have also identified the benefits which the country brings to global businesses. AT Kearney, in the year 2019, ranked this nation as amongst the top 25 best locations on the planet for delivering business services to international companies ahead of any other Arabian countries as well as nations such as Italy, India, and Turkey.