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United Arab Emirates
United Arab Emirates
The UAE has the world’s sixth and seventh largest oil and gas reserves respectively. With a per capita income of around $ 43,000, stable economic growth rates and international non-current assets estimated at several hundred billion dollars, the federation of the seven Emirates is among the richest countries and most financially powerful investors worldwide.
The GDP growth rate was was estimated to stand at a healthy 4.3% in 2014 (2013: 5.2%). The inflation rate in 2014 was around 2%. The cornerstone of good economic performance in recent years is the high oil price, which ensured continued high government revenues. The recent decline in oil prices to well below USD 100/bbl isn’t likely to affect the Gulf company much as its economic stability is guaranteed until the break-even price of USD 80/bbl according to IMF. Meanwhile UAE is also looking to expand its current production of 3 million bpd to 3.5 million bpd in the short-term.
In order to make the economy independent from oil revenues in the long-term, the UAE is following an ambitious course of economic diversification: key sectors pertaining to this program are logistics, retail (mainly re-exports), organization of trade fairs, tourism and financial services, as well as energy (especially Dubai), capital-intensive industries (steel, aluminum, and petrochemicals) and high technology (microchip production, renewable energy). A great importance is also being given to aviation, which is responsible for a fifth of UAE’s economic output. Dubai, and also Abu Dhabi now, have been able to establish themselves as major hubs of international air traffic due to their good geographical locations and favorable structural conditions.
Why invest in the UAE?
- UAE’s politically stable climate, in the relatively volatile Middle East, allows for an excellent environment to conduct business in. While also making the country a regional hub.
- The recently growing tourism in the country is positively contributing to UAE’s GDP. This, and the UAE government’s rigorous plans for economic diversification, are strong indicators of the country’s continued growth for several years down the line.
- If you are looking to invest in property, UAE offers a prime destination for this endeavor. This is so because real-estate in the UAE is completely tax-free apart from a transfer fee of 4 percent.
- UAE is home to one of the most dynamic and diverse workforces in the world.
- UA is strategically located in the Middle East which makes it a communication hub in the region.