Foreign Investment in the UAE
The UAE economy witnessed a steady boom for a number of years, which created almost limitless business opportunities in the country, and concerted government efforts to develop its non-oil sectors and diversify the economy have stood it well. The economic impact of the global financial crisis on the UAE was not as big as originally predicted, thanks in part to its far-sighted fiscal policies.
During 2008, the Ministry of the Economy ventured to review and strengthen the legal framework supporting the UAE’s economic activities to make it more competitive in the global marketplace. The government also undertook efforts to establish strategic associations and sign free trade agreements with key partners that would contribute to the growth and increased competitiveness of various sectors.
In the last quarter of 2009, the International Monetary Fund (IMF) raised its economic outlook for the UAE, forecasting that its economy would grow by 3 per cent in 2010, as opposed to the 2.4 per cent predicted earlier in the year, and despite decreased oil revenues, modest growth was forecast for its non-oil sector in 2009. Major infrastructure projects also remained on track, and government expenditure on such projects is expected to continue.
Additionally, the UAE has steadily improved its Trade Index ranking. The Enabling Trade Index, published in 2009 by the World Trade Organization (WTO), confirmed its position as a global trade hub and one of the world’s preferred re-export destinations, leading the entire region at 18th position (worldwide) and ranking well in almost all commercial and infrastructure related variables.
The UAE demonstrated clear leadership, as compared to the rest of the world, in several categories including:
- Ease of hiring foreign labour: rank #1
- Paved roads: rank #1
- Quality of air transport infrastructure: #4
- Cost to import: rank #5
- Cost to export: rank #6
- Reliability of police services: rank #7
- Quality of port infrastructure: rank #8
- Quality of roads: rank #9
- Timeliness of shipments in reaching destination: rank #17
Related Links
www.uae.gov.ae
