Economy of the United Arab Emirates in certain aspects has been a role model for many countries of the world, as it is able to demonstrate growth year after year. At the same time, the monarchy not only actively invests financial resources in the development of foreign projects, but also seeks to increase the volume of foreign capital in its own market. The present situation for the investments as well as the developing of the spheres of business as tourism, logistics, retail showing very stable UAE business directory and the following article is giving the brief overlook of those.
INVESTMENTS FLOW
Transparent regulation of investment activities, attractive tax conditions for the investor and a balanced investment policy of the authorities allow the UAE, to intensify foreign investment flows. According to the Deputy Minister of Economy of the UAE A. Salekh, this year the country plans to increase the inflow of foreign investment by 20%.As the Secretary General of the Chamber of Commerce and Industry of the Emirate Sharjah H. al-Mahmoudi recently said, the country’s economy grows by 4-5% annually, which allows the authorities to count on increasing potential investors in various projects in the sphere of education, tourism, logistics and energy.
THE OVERALL INTERNAL SITUATION
In the rating of the most prosperous countries in the world in terms of gross domestic product (GDP), UAE is rated in the first ten. And the third largest economy in Islamic world. The corresponding rating was published by Forbes magazine This stable situation became possible due to the intensive development of the so-called non-oil sectors of the economy. The most important for the UAE among them are the tourism industry, the real estate market (including the hotel industry), the sphere of retail trade, the finance industry. Experts of the International Monetary Fund earlier stated that the UAE is in a favorable position on the world market due to the established reputation of a safe harbor, as well as extensive “financial buffers” that effectively mitigate the consequences of the decline in oil prices, slowing the growth of the global economy and destabilizing the economies of developing countries.
THE OIL INDUSTRY
Now we can state that the economy of the UAE, frankly speaking, is gradually getting rid of the “oil curse”. As per the following the results, the share of the oil and gas sector in the structure of the country’s consolidated GDP was 31.4%. The oil reserves of the UAE are mainly concentrated in the territory of Abu Dhabi, and the oil industry accounts for 56% of the GDP of this emirate. The National Oil Company of Abu Dhabi accounts for over 90% of the oil produced in the UAE.
THE BANKING AND FINANCIAL SPHERE
The financial sector plays an important role in the economy of each developed state. This sector takes an important place in UAE business directory. On the contrary, along with oil, finance and banks are the main driving force of the country. Several free economic zones have been created and successfully functioning in the Emirates, which makes the state extremely attractive for foreign investors. Particularly in demand in the financial sector is private financial management. UAE has high lending structure as well as in USA.
THE UAE AVIATION
Everyone knows the largest and some of the most expensive airlines in the world – Emirates and Etihad – originally from the UAE. These carriers are famous not only for the flight geography, but also for one of the best world-class service levels on board. Another feature is the multinational staff. They seek to recruit the best personnel from different countries.
THE PROPERTY
Emirates – this is an uninterrupted stand in the middle of the desert. The “business card” of the country is the skyscrapers shining on the scorching sun. In addition to glass towers occupied by firms, new hotels, shopping centers and other infrastructure facilities are being built endlessly. The residential real estate is also being built. One of the areas of activity directly related to real estate is real estate services. In the Emirates, there are many agencies that offer the purchase or sale of any property for any purpose. Most of all opportunities in the field of construction, development and real estate transactions offer Dubai. It is this metropolis that attracts investors to create businesses and purchase commercial real estate, tourists and potential home owners who want to invest in real estate abroad.
TOURISTIC SECTOR
Arab Emirates is one of the most popular destinations for tourists from different countries. Therefore, for many years tourism has remained an important component of the country’s economy. Because of the current political situation, the UAE is becoming an excellent alternative to Turkey and Egypt. The most attractive part is remaining to be Dubai with its luxury hotels and various entertainments for tourists.
OVERALL GLOBAL INDICATORS
The country’s GDP has grown 8 times over the past quarter-century. The rapid development of the last decade has allowed the emirate economy to become the second economy in the Arab world after Saudi Arabia. Thus, the current economic situation in the UAE may be characterized as stable with good growth potential.