The UAE is the 25th most competitive economy globally as per the Global Competitiveness Report 2019, leading the MENA region and works to enhance this status by diversifying its national income. Features of the UAE’s solid economy include:
- Strategic location
- Strong financial reserves
- Large sovereign wealth funds
- Healthy international relations
- Consistent government spending on infrastructure, digital transformation and innovation
- Progressive policy of economic diversification
- Multi-specialty free zones
- Increased foreign direct investments (FDIs).
Ease of doing business
The UAE presents a favourable business environment. Excellent infrastructural facilities coupled with professional expertise and personalised services give the UAE an edge over other countries. The UAE was ranked 16th globally, as per the World Bank’s Ease of Doing Business Report 2020. Its rank in the various indices is as follows:
- 1st globally in ‘getting electricity’
- 3th globally in ‘dealing with construction permits’
- 9th globally in ‘enforcing contracts’.
- 10th globally in ‘registering property’
Variety of business premises
The UAE extends the flexibility to do business anywhere in the country. Choices of locations include free zones, industrial areas and commercial buildings.
Skilful talent and labour
The UAE’s talent and labour force is one of the most skilful in the world. Its multi-cultural population enhances workforce productivity and creativity.
- The country’s official language is Arabic, with English and other major languages also being widely used
- The UAE launched a new visa system, attracting qualified workforce in the health, scientific, technological and cultural sectors.
- The UAE is seeking to be the first incubator of highly skilled professionals and talented human capital in dynamic, economic sectors.
Attractive investment incentives include:
- Up to 100 per cent foreign ownership in free zones
- 100 per cent foreign ownership in 122 economic activities across 13 sectors
- 100 per cent profit repatriation
- An effective visa system allowing for renewable 10-year residence visa
- Competitive financing costs, high levels of liquidity and strong banking system
- No foreign exchange controls
- Strong appreciation and fully convertible currency
- Low inflation
- Low customs tariffs (between 0 and 5 per cent for almost all goods).
The UAE encourages private sector growth and competition and enforces regulations that prohibit monopoly. It has strong ties with key regional and international trade associations. The UAE:
- is a member of the World Trade Organization (WTO) since 1996
- is a member of the Greater Arab Free-Trade Area (GAFTA) in which all GCC countries participate
- concluded Free Trade Agreements with Singapore and the EFTA
- is cooperating with the GCC countries to conclude the Free Trade Agreements with the EU, Japan, China, India, Pakistan, Turkey, Australia, South Korea and Southern Common Market (MERCOSUR).
The UAE has a long-term political stability, with open diplomatic policy worldwide. The UAE has more than 100 dynamic diplomatic missions abroad and about 200 foreign diplomatic missions in the country. The UAE is:
Updated on 19 Nov 2020