What lies ahead • Chapter summary

Founded on open trade, international connectivity, and a make-it-happen attitude, the UAE is determined to kick its economy back into gear. It launched a USD16.3 billion budget for 2019 which is 17.3% higher than 2018 and the largest budget in the country’s history. The IMF, prior to COVID-19 outbreak, expected economic growth to expand in 2020 on the back of fiscal stimulus and preparations for Expo. Combined with the leading response to fallout from COVID-19, Dubai will lead the GCC through 2020.

Dubai remains unrivalled as the region’s trade, tourism, and finance hub, one which is pivoting to Asia’s higher growth markets. But executives say the government must redouble its efforts to improve sentiment by cutting small business costs and reviving the Emirate’s allure for big corporations. Along this line, a major focus for the Dubai Department of Economic Development (Dubai Economy) in recent months has been on streamlining and digitizing licensing processes. At the fifth Dubai Investment Week in October 2019, Dubai Economy launched its virtual license. What’s more, several free zones, including Dubai South and TECOM Group’s clusters, have initiated freelance visas to make it easier for entrepreneurs to start their businesses in the Emirate.

Though the oil sector’s prospects have improved with higher prices and output, non-oil growth is also projected to rise. In particular nonoil trade will be driven by expanding linkages with Asia and Africa. In November 2019, official Expo 2020 partner Dubai Chamber of Commerce and Industry (Dubai Chamber) hosted its fifth edition of the Global Business Forum on Africa, where stakeholders—from government leaders to entrepreneurs—discussed new areas for collaboration. In 2020, Dubai Chamber will look east to host its first Global Business Forum on ASEAN and forthcoming business opportunities in Asia.

Another area of non-oil growth is the Islamic economy, which is increasing its contribution to GDP and economic development. Most recent figures indicate the Islamic economy contributes 10% to Dubai’s GDP, and with the highest value of sukuk listings, the Emirate is well-posed to become the global capital of the Islamic economy. One example of Dubai and the Dubai Islamic Economy Development Center’s (DIEDC) leading role is the development and implementation of halal certifications.

Other economy-wide trends include managing succession for the second and third generations of family companies as well as integrating technology and leveraging the full potential of Industry 4.0. In this vein, out-of-the-box new initiatives will ultimately be the engines of Dubai’s growth. There can be no better event than Expo 2020 to showcase Dubai’s strides and the roadmap for what lies ahead. ✖