Business leaders say Tomorrow 2021 will create a stronger economy in 2019

Abu Dhabi’s business leaders predicted a strong start to 2019 when Dh20billion is injected into the economy under the landmark Tomorrow 2021 plan.

Confidence is growing with the announcement by the Crown Prince of Abu Dhabi on Sunday that Dh50 billion will be spent to boost small businesses and create new jobs in the coming three years.

“It inspires confidence that the leaders and His Highness Sheikh Mohammed [also Deputy Supreme Commander of the Armed Forces] have a vision to move forward with the economy of Abu Dhabi ... to stimulate business and to create job opportunities,” said Hussain Al Nowais, a leading businessman and chairman of the Khalifa Fund, which has helped to launch more than 2,000 start-ups and small businesses.

“The plan is not only to invest in business but in human capital as well – ensuring that UAE nationals and residents receive the support they deserve.”

Alongside the cash injection, Tomorrow 2021 is intended to create jobs for Emiratis, encourage the growth of technology companies, create a research-and-development industry and improve quality of life for all residents.

“The government realised that the cost of running business has increased recently and that therefore they needed to come up with a plan,” Mr Al Nowais said.

“Because if businesses don’t make money and the costs are high, investors will leave.

“We need to encourage investors to stay and businessmen to continue to invest in the country. Ultimately it is a cycle – they invest, the economy moves on.

“I don’t know numbers but the costs have increased and as a result of that we saw many people leave the country. Whether you are an Emirati or not, we are all part of the same system so when people left it affected business.

“This is a cohesive country and society.”

A series of changes have been unveiled in recent months that will now allow start-ups to launch without a physical address and make it easier for free zone businesses to trade on shore. “[We do need to] ease processes, such as licensing and registration ... not to get things in a month or a week but in a day and an hour.

“This will help investors and

business,” Mr Al Nowais said.

Ahmed Al Mazrouei, a businessman and deputy head of the UAE Contractors Association, which represents about 500 companies, said the construction industry has struggled this year.

“The grant will support the the economy and particularly the contracting sector – which needs the support,” he said.

“We have been in deadlock and there hasn’t been a lot of growth in terms of new business, with many [companies] pulling out and shutting down. The grant will stimulate the market.

“We will see more demand for projects, which also means the need for a larger workforce, creating more opportunities for nationals and residents.”

Ahmed Al Mazrouei, a businessman and deputy head of the UAE Contractors Association, predicted the injection of funding would create a knock-on effect and greater demand for accommodation and services.

“The entire economy will be invigorated again,” he said.

Business leaders emphasised that in a local economy driven by public sector spending, any substantial injection of investment, leading to the issuing of contracts, construction projects and new rounds of hiring, would boost the economy, including health and education.

Also backing the plan was Mohammed Ali Al Shorafa Al Hammadi, chief executive of United Eastern Medical Services, which runs Danat Al Emarat Hospital, HealthPlus Network and Moorfields Eye Hospital Abu Dhabi.

He predicted that the stimulus package would lead to a “bigger workforce and a flourishing economy”.

Dr Shamsheer Vayalil, chairman of the hospital group VPS Healthcare, said start-ups and small businesses need government spending.

“We strongly support the notion that entrepreneurship will help develop and strengthen the UAE’s economy and help it become future-ready,” he said.

“These measures would also allow for the knowledge generated by entrepreneurs to create lasting prosperity and benefit society as a whole.

“One of our projects aims to encourage high-school pupils to build and market their innovative ideas.”

Yusuff Ali M A, founder of the Lulu Group International supermarket chain, said the government had listened to calls from businesses and the community.

“I am sure each one of us will not only benefit from this but should also look at contributing actively to the further development of this great nation,” he said.