UAE COMMITTED TO ECONOMIC GROWTH ON 46th NATIONAL DAY

UAE COMMITTED TO ECONOMIC GROWTH ON 46th NATIONAL DAY

UAE COMMITTED TO ECONOMIC GROWTH ON 46th NATIONAL DAY

On the upcoming national day, UAE will be step ahead towards its endeavour to build modern and progressive, yet a sustainable nation based on the principals of universal brotherhood, love, and humanity. While its leadership will continue ushering it in an era of increased growth, technological advancements, and higher standards of living; simultaneously it will continue to play a larger role in the region towards restoring peace and managing geopolitical contingencies.

Economic Momentum Will Continue to Unfold

Its economy is set to grow at an accelerated pace in the times ahead. In 2018, the UAE’s economy is expected to grow at 3.6%, outpacing other economies in the GCC region, as revealed by an economic panel led by Oxford Business Group. Amidst a time, when most of the economies in the region are embroiled in economic slowdown and political chaos, UAE’s will continue to outsmart others, thereby consolidating its position as a favoured business and trade destination for global, regional and domestic companies.

Despite job cuts, freezing expenditures, and narrowing profitability; the overall environment in UAE continues to be far from being despondent as most of the CEOs are positive about the business environment in the foreseeable future. The optimism about UAE can be attributable to UAE’s prudent leadership, its cosmopolitan cultural magnetism, sound economic reserves, massive infrastructure that continues to grow, and its strong drive towards economic diversification.

Economic Diversification Will Fuel Growth

As a natural corollary to sustained economic growth, economic diversification and reduced reliance on petroleum exports will continue to gain steam in UAE. This will be exemplified by large scale infrastructure development projects, preparation of World Expo 2020, investments in retail and tourism projects, and bolstering its manufacturing base. Its strategic location on the global supply chain network coupled by a powerful logistic infrastructure will help it further deepen its diversification agenda. By 2025, as per the estimates by Frost and Sullivan, it is believed that around 90% of the UAE’s economic growth will be driven by non-oil sector.

Impact of Tax Law on UAE Economy

UAE is also introducing VAT by 1st January 2018. Consumers are expected to pay a VAT of 5% while purchasing goods. This is still much less when compared to other developed countries (~20%), considering UAE offers a lifestyle that is comparable to most of the developed quarters of the world. VAT will also enable the government to collect up to AED 20 (USD 5.45) billion from tax proceeds.  This will give further boost to the infrastructure development in the country.


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