- October 29, 2020
- Posted by: Waqas Siddiqui
- Category: Others
UAE Focuses on Achieving Zero Oil in GDP in the Next 50 Years
With COVID-19 pandemic bringing unprecedented challenges to people and the economy, the UAE government aims to diversify its economy by having zero oil dependency on GDP and refining policies in a bid to grow non-oil based sectors and facilitate investments in them.
Achieving Zero Oil Dependency in the Next 50 Years – UAE
UAE is aiming to become the first country in the world to achieve zero contribution of oil on its eGDP over the course of next 50 years. The country aims to enhance the investment opportunities in industries such as Information Technology (IT), Artificial Intelligence (AI), Blockchain and Robotics. In addition, UAE is also focusing on strengthening its position as a regional leader in finance, logistics, infrastructure for energy and other services which would help achieve the zero oil contribution to GDP.
Impact of FDI on Economic Diversification
Foreign Direct Investment (FDI) plays a critical role in the economic growth of UAE with the country leading the region in 2019. One of the major reasons for the increase in investments was the FDI law that was enacted in 2018, which opened up the UAE market to investors in certain sectors and relaxation of foreign ownership restrictions for 122 business activities. These initiatives cumulatively increased the FDI 52% reaching AED 50 billion (USD 14 billion) in 2019 compared to 2018.
Furthermore, the digitalisation strategies and promising business relations implemented by UAE has placed it 16th on World Bank’s Ease of Doing Business list. UAE will continue to refine its policies that will maximise competitiveness, increase collaboration and provide opportunities for FDI in a bid to achieve zero oil contribution to GDP.
Key Emerging Sectors
The Covid-19 pandemic has had a significant impact on FDI in UAE, it is estimated that the investments might start recovering by the year 2022. Some of the major segments that will see an increase in investments are e-Commerce, IT, Innovation, Healthcare, Manufacturing, Retail and Food & Beverage (F&B). Similarly, the emerging sectors that would see an increase in FDI are Communication Networks, Artificial Intelligence, Blockchain, 3D Printing and Machine-to-Machine Communication. It is recommended to contact market research company in Dubai to gather insights on the industries
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