The UAE experienced a strong start in 2019, companies remained confident that further improvements in new orders would result in continued growth of business activity over the coming year. Bold decisions taken by UAE government to issue long-term 10-year visas, which has boosted not only new investors’ confidence, but has also given a lifeline to existing ones.
Changes Brought by UAE in First Half of 2019
Issuing of new licenses
The Dubai economic department’s business registration and Licensing (BRL) sector issued a total of 14,737 new licenses during the half of 2019. Around 52% of the new licenses were commercial, while 45% were professional. This change helps to reflect the Dubai’s economic system by providing essential data on each license category including their numbers and distribution on a monthly basis.
Potential environmental benefits
Dubai is tending to pick up in the first 6 months which has led to, more availability of resources to invest in cleaner technologies. And, as nations develop, energy intensity levels fall
Attracting international investment
Attracting international investments is complex to the sustainable development of any country, and in the case of the UAE, to its economic diversification strategy. Higher foreign direct investment results in creating more job opportunities and stronger international collaboration and can lead to the faster realization of the objectives of both UAE Vision 2021.
Women corporate power
Women increased their share among new business owners to 12 percent by encouraging participation of all women entrepreneurs and investors in UAE. From government sectors and multinational boardrooms to mentoring and funding associations of their own startups, women in the UAE are influencing cultural and economic advancements of UAE. The government is keen to support women in the workforce, their place on boards and their ability to business setup with initiatives like compulsory quotas for board membership and startup funding.
Increase in real estate sector
The long-term property outlook in 2019 UAE remains positive. Attractive prices for properties have also widened the pool of buyers. Additionally, 2019 may see an increase in first-time buyers entering the market. Declining rents across the UAE will give tenants the chance to update to bigger homes or more strategic locations. Another factor into the UAE real estate forecast for 2019 are the variety of flexible payment plans being offered on off-plan projects.
Growth in logistics and warehouse space
There will be a boost in logistics and warehouse space in 2019. As more international brands look to move into the UAE, sourcing high quality warehouse space – that can be customized to fit client needs.
Boost in tourism industry
This has strengthened its bond in terms of global tourism, a key part of its policy of economic diversification. The country has an appeal largely due to the year-round calendar of festivals, events and shopping experiences. The tourism sector contributes over AED161 billion to the national GDP, a figure that is expected to record annual increases by start of 2020.
Increase in oil sector
Economic activity in the UAE is estimated to accelerate in 2019, This will be buoyed by a pick-up in oil activity, rising public spending at the Federal and Emirate levels, higher investment is expected ahead of highly anticipated Expo 2020 and continued regional economic recovery.
Oil production is expected to rise further and average, reflecting continued investment by the UAE to expand production capacity. The oil sector is forecast to grow by around 2.5% in 2019, marking the fastest growth rate for the sector in three years.
With the international mega event Expo 2020 drawing closer, a wave of increase and optimism has been gripping the UAE. Expo 2020 Dubai expects to attract 25 million visits to explore its theme of ‘Connecting Minds, Creating the Future’ in the six-month event starting October 2020.More than 70 percent of visitors are projected to come from outside the UAE – the largest proportion of international visitors in the 168-year history of World Expos.
In 2019 the aim is to bring a deeper intact of next generation technologies such as robotics, artificial intelligence and blockchain on investment. Enriching World Economies through Digital Globalization,’ will help direct adoption of a new way of thinking amidst these digital explosions.
Business Set Up Consultants in UAE
Business Investors from different parts of the world are considering Dubai to setup their business and to invest in this booming economy. If you are planning or thinking about setting up a business in Dubai, you can talk to business consultants at FAR consulting middle east, who can guide throughout you the procedures of business setup in UAE.