The UAE has emerged as a symbol of progress and hope, not just in the region, but around the world
HAT’S JUST THE START AS THE OUTLOOK IS EVEN BRIGHTER BEYOND THAT
Dubai is a good example of how an oil exporter should diversify
Hafez Ghanem, vice-president for the Mena at the World Bank
knowledge economy’ is one of the pillars of the UAE National Agenda in line with Vision 2021. According to an official report by the Ministry of Economy, the government has continued in 2017 to focus on the UAE becoming the economic, tourist and commercial capital for more than two billion people. To achieve this, the government has set 12 key performance indicators: non-oil real GDP growth; gross national income per capita; net inflow of foreign direct investment as a percentage of GDP; global competitiveness index; share of UAE nationals in the workforce; ease of doing business index; Emiratisation rate in the private sector; the contribution by small and medium enterprises to non-oil GDP; global entrepreneurship and development index; global innovation index, share of ‘knowledge workers’ in the labour force; and research and development expenditure as a percentage of GDP.
Effective October 1, 2017, the UAE marked the beginning of a new era in its history, as it started implementing excise tax, exactly three months ahead of the launch of value added tax, another landmark place enjoyed by the UAE in World Competitiveness Index region-wide tax initiative. Initial estimates suggest that the tax will generate up to around Dh7 billion in annual revenues for the federal budget.
In the key oil and gas sector of the economy, the most significant development of the year was the announcement that the Abu Dhabi National Oil Company (Adnoc), was to list a minority stake in its subsidiary, Adnoc Distribution, on the Abu Dhabi Securities Exchange.
Announcing the step at the 2017 Abu Dhabi International Petroleum Exhibition and Conference in early November, Dr Sultan bin Ahmad Sultan Al Jaber, UAE Minister of State and CEO of Adnoc Group, said that: “the planned IPO, to be listed on the Abu Dhabi Securities Exchange, will offer both UAE and international investors an unprecedented opportunity to invest alongside Adnoc in one of the region’s leading retail brands.”
At an international level, the UAE has continued to perform well against its competitors. In the latest World Competitiveness Ranking of 63 countries by the IMD World Competitiveness Centre, issued in May 2017, the UAE rose to 10th place, making it the only Arab country to find a place among the super league of the global top nations.
In the most recent edition of the Global Competitiveness Report 2017-18, issued by the World Economic Forum, the UAE topped the Arab world and ranked 17th globally in the global competitiveness ranking. The report also ranked the UAE among the top 20 competitive economies globally for the fifth consecutive year. The country also maintained its ranking to be among the world’s most significant innovation-based economies for the 11th successive year.
— issacjohn@khaleejtimes.com
Hussain Sajwani,
Chairman of Damac Properties financial buffer enjoyed by the UAE, as estimated by the IIF economic growth projected for the UAE in 2018 by the IMF