Pandemic challenges
For the last 49 years, the U.A.E. has made efforts to foster an attractive business environment, which has been recognized with numerous accolades, including achieving a place in rankings as one of the happiest and one of the most competitive countries in the world.
As it readies itself to celebrate its 50th year in 2021, the COVID-19 pandemic has introduced a new set of challenges for the U.A.E., with the oil-exporting destination particularly sensitive to the reduced global demand for oil, as well as the major disruptions in global travel and tourism.
The impact of the global pandemic hit every country this year. The U.A.E.’s real GDP growth in the second quarter of 2020 fell 7.8% year-on-year, with overall GDP growth for the year expected to contract by 5.2%, which is worse than the 3.6% negative growth forecast previously expected. GDP for the non-oil sector fell 9.3% year-on-year in the second quarter, with a milder contraction of 4.5% expected for the sector this year.
As a regional trade, tourism, and transportation hub, the country’s hospitality and retail sectors were hit particularly hard. The
Intelligence, UAVs, energy storage, blockchain, the Internet of Things, and many more.
What makes you optimistic about the next 50 years for the U.A.E.’s economy?
The market is generally going towards two main areas: clean energy and digital transformation. The U.A.E. has taken early steps to bid farewell to the last barrel of oil and achieve a balance between economic development and maintaining a clean, healthy, and safe environment. Today, through its strategies and investments, the U.A.E. is leading global efforts in renewable and clean energy sectors. The U.A.E. Energy Strategy 2050 aims to achieve an energy mix that combines renewable and clean energy sources to balance economic requirements and environmental goals. The U.A.E. will invest $163.3 billion until 2050 to meet the growing energy demand and ensure the sustainable growth of the economy.
We are making every effort to shape the government of the future. We are keeping pace with the latest developments in strategic sectors based on sound scientific foundations and identifying and planning for future challenges to turn them into promising opportunities. This will achieve the U.A.E. Future Foresight Strategy, and the U.A.E. Centennial 2071 to make the U.A.E. the world’s leading nation by 2071.