By Dani Tabbara, COO of Al Tamimi Investments
The UNCTAD’s World Investment Report 2022 ranked the UAE as the leading nation in the Arab region and 19th in the world in terms of attracting quality foreign direct investments (FDIs). The report is proof of how far the UAE has come in its efforts to remain a leading investment hub vital to its economic diversification agenda.
It pays that many of its major programs and policies are geared towards sustaining a favorable ecosystem for local, regional and global investors to flourish. In doing so, the nation does not only target to support owners of multinational corporations, but it also seeks to entice entrepreneurs and bright minds behind the most innovative start-ups.
One such relevant ambitious initiative was announced in 2021, when the UAE Government revealed its plan to make the country home to 20 unicorns or start-ups valued at over USD 1 billion by 2031. This has effectively leveled up the game in terms of promoting entrepreneurship and innovation in the country. It has also opened up new numerous investment opportunities that could further drive the country’s stature on the global investment stage.
The initiative and other programs serve as among the UAE’s strengths as a world-class hub for businesses and investors.
The commitment of the country, the Arab region’s second-largest economy, to sustainability, technology and modernization is key to its strong economic performance, an important consideration for many investors and which is helping drive positive market sentiments.
Strong oil prices, improved oil production and the country’s effective pandemic-related actions have played a part in its recent economic gains as well, in addition to the grand Expo 2020 Dubai that had helped boost major industries such as tourism, hospitality, logistics and real estate.
During the first three months of 2022 alone, the UAE Central Bank announced that the country posted an 8.2 per cent economic growth. The UAE is expected to finish the year stronger, as it implements more relevant reforms. With its timely actions, the country has been named by the World Bank as one of the nations to quickly reach its pre-pandemic levels.
And with the government’s increasing emphasis on green economic solutions, higher growth in sectors such as climate, transport technology, food, and energy may be on the horizon.
More achievements expected in next 50 years
The UAE continues to ramp up its efforts to become one of the 10 biggest global investment destinations by 2030. Several factors will make a huge difference in this regard, including its world-class infrastructure, public-private partnerships, increased economic participation of Emirati nationals, and many more.
Under the guidance of its wise leadership, the country is poised to achieve its target of USD 150 billion inward foreign investments to become one of the world’s best nations in line with UAE Centennial 2071.