Reports

Dubai Urban Master Plan 2040 In order to further enhance Dubai’s appeal to investors, visitors and residents, Dubai has launched the 2040 Urban Master Plan, a roadmap for sustainable urban development in the city. The masterplan was designed by H.H. Sheikh Mohammed bin Rashid Al Maktoum, V.P. and P.M. of the UAE and Ruler of Dubai. The plan focuses on using the available spaces within the city limits and concentrates on development in existing urban areas.  The major focus of Dubai 2040 urban master plan is to develop the five urban centres namely Deira & Bur Dubai, Marina & JBR, Business Bay & Dubai Downtown and Expo 2020 Centre & Dubai Silicon Oasis Centre. Initiatives such as infrastructure development and new property development will be carried out raising Dubai’s reputation globally as a business and financial hub. Furthermore, the implementation of 2040 Master Plan will strengthen Dubai’s resilience toward global challenges.  Impact of Dubai 2040 Urban Master Plan – Tourism & Hospitality It is estimated that Dubai’s population is set to reach 5.8 million by 2040 from 3.4 million in 2021, and the 2040 urban masterplan will provide the groundwork for how the city can grow sustainably over the next 20 years, accommodating the needs of the growing population. Under the plan, the land area used for hotels and tourist activities will increase by 134%, while the land used for commercial activities will increase to 168 Sq. kms.  While Dubai will continue to be a global hub for innovative start-ups, international corporations and an ideal platform for Foreign Direct Investments (FDI), the master plan will also increase the land area allocated to education and health facilities by 25%, while the length of public beaches will increase by as much as 400% in 2040. Easily accessible integrated service centres will be established across Dubai while the plan also seeks to raise the quality of life of the city while increasing population densities around key transit facilities. Read: Dubai Extends the Freeze on Government Fees to Support Local Economy and Businesses Investment Opportunities in Dubai The people-centric plan focuses on reinforcing Dubai’s competitiveness as a global destination for investment, by providing a wide diversity of lifestyle and investment opportunities for citizens, residents, visitors and addressing all their growing needs over the next 20 years. It will also enhance Dubai’s investment appeal and attract fresh investments into all the sectors. The plan will help raise the Emirate’s growing role as a pivotal business and trade hub, enhancing its attractiveness as an investment destination by leveraging its superior logistics infrastructure, including some of the world’s best ports and airports and maximising its ability to harness the vast talent pool available. The new master plan will help strengthen Dubai’s efforts to mitigate the repercussions of the Covid-19 pandemic, accelerate the pace of its economic recovery and prepare the ground for a bright new post-pandemic world. Read: Investors Positive & Confident about the UAE Economy Research Konnection is one of the leading market research companies in Dubai and UAE. Please feel free to reach out on waqas@researchckonnection.com to discuss about successfully entering the UAE market, Market Research, Business Plan Development, and Business Setup or Expansion. …

UAE Foreign Exchange Industry Experts Positive of Economic Recovery in 2021 The year 2020 saw a drop in remittances value by 10-15%, because of the Covid-19 pandemic. Despite the drop in remittances value by 10-15% in 2020, the UAE’s foreign exchange industry executives remain confident in recovery mainly due to the increase in economic activity, Covid-19 management by the government and the return of expat workers to the UAE being the major contributing factors for the increase in remittance flows. Read: Investors Positive & Confident about the UAE Economy UAE Foreign Exchange Industry Experts View Khaleej Times conducted interviews with several industry experts who were positive that remittances and foreign exchange business will pick up in 2021. Joyalukkas Exchange – Antony Jos, MD – Joyalukkas Exchange & Treasurer at the Foreign Exchange and Remittance Group (FERG), expects growth in remittances this year on the back of a strong rebound in the economy, strong vaccination drive, firmer oil prices, Expo 2020 Dubai and the opening up of the Israel market to UAE businesses. Lulu Financial Holdings – Adeeb Ahamed – MD Lulu Financial Holdings said that the outlook for UAE remittances is positive for 2021 and the Lulu Group remains bullish in their views for the remittance and foreign exchange business. Ahamed said a revival of the economic activity will be a huge boost to the business along with Covid-19 management by the UAE government, the return of expat workers to the UAE and better job opportunities which will influence the remittance flows. Al Ghurair International Exchange – Imad Ul Malik, GM – Al Ghurair International Exchange & Joint Treasurer at FERG said that remittances from the UAE are expected to grow in 2021 as a result of the vaccination drive and opening up of the leisure and travel industry. Likewise, the opening of the leisure and travel industry is also an indication of the increased confidence in getting back to normality. The upcoming Expo 2020 will also reflect directly on the remittance industry in a positive manner. Orient Exchange – Rajiv Raipancholia, CEO – Orient Exchange, said there is uncertainty on the outlook and does not expect a return to pre-pandemic levels this year. However, he stated that if more projects were launched this year, there will be demand for more migrant workers, which would lead to a bullish outlook for remittances. UAE Coronavirus Cases Decreasing  UAE was seeing a gradual decrease in the infection rates, as 52.46% of the population has received the Covid-19 vaccine according to the National Emergency Crisis and Disaster Management Authority (NCEMA) which is a positive sign and a step to recovery and resuming normal life in the country. Daily Covid-19 cases in the UAE dipped below 2,000 for the first time in more than two months, with 1,898 new cases reported on March 15.  UAE Economic Recovery 2021 Strategy The post-COVID 19 will give rise to new business patterns with governments playing a key role in the national economy, leading to substantial investments in digital infrastructure, 5G networks, Smart Cities & Services, health, education and trade. The measures taken by the government to control the Covid-19 and vaccinate against the population, will accelerate the pace of economic recovery by increasing the willingness of international investors to visit the Emirates. Furthermore, Dubai extended the freeze on government fees to support the local economy and businesses. The decisions taken by the Dubai government, reflects the government’s supportive and investor-friendly environment which will continue even beyond Expo 2020. Even though the Expo will end on March 31, 2022, the investors and businesses that are operating in Dubai will continue to benefit from these supportive measures till early 2023. Research Konnection is one of the leading market research companies in UAE. Please feel free to reach out on waqas@researchckonnection.com for Market Research in Dubai & Abu Dhabi, Business Idea / Concept Validation, Business Plan Development, Business Setup or Expansion and UAE Market Entry….

Abu Dhabi Targets Innovative Companies with AED 2bn Investment Programme  Last year, Abu Dhabi’s Investment Office planned to provide financial and non-financial incentive programmes with an estimated value of AED 2 billion (USD 450 million) from 2021 onwards, targeting innovative companies in high growth areas. Through this innovation programme, Abu Dhabi aims to show the world that it is open for business and is committed to entrepreneurship.  Despite the funds from the innovation program being focused on all the sectors of the economy, the primary emphasis will be to allocate funds for start-ups, entrepreneurs, as well as SMEs (Small Medium Size Enterprise). The program will also provide non-financial incentives such as consulting services, connect the companies to potential revenue streams and provide them with opportunities to look at policy and how they may be able to participate in changing policy and regulations. Read – Abu Dhabi Government Support for SMEs demonstrates their importance to UAE Abu Dhabi Economic Stimulus Package targeting SMEs In addition to Abu Dhabi Investment program – 2021, several other initiatives were also introduced to support the startups and SMEs in the Emirate. One of such initiatives is the economic relief scheme which includes 16 Initiatives aimed at reducing the costs of living and supporting businesses in the emirate. Abu Dhabi’s Department of Finance collaborated with three of the emirate’s top lenders to expand the SME Credit Guarantee Scheme as part of Abu Dhabi’s economic stimulus programme. Under the deal with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and First Abu Dhabi Bank, the government will guarantee up to 80% of the value of the credit guarantee scheme to SMEs. Similarly, the investor-friendly initiatives that the government launched in 2020, following the outbreak of the pandemic has had a positive impact on the economic recovery and in the stabilization of the jobs in the Emirate. Read – Abu Dhabi Economic Report 2021 Investment Opportunities – Abu Dhabi With the initiative, Abu Dhabi has shown its commitment in reaching out to international investors to establish their presence in the Emirate. The latest supportive measures taken by the government will accelerate the growth in startups and international investments in Abu Dhabi and contribute to economic recovery. It will also reduce the cost of business operations for the existing companies, providing adequate time for the companies to recover, especially the SMEs in the aftermath of Covid-19 pandemic.  Research Konnection is one of the top market research companies in Abu Dhabi. We have assisted clients across various sectors of the UAE economy including Food & Beverage, Education, Healthcare & Fitness, Real Estate & Construction and eCommerce sectors, and have received stellar reviews for our work. Feel free to reach out to us for support in Feasibility Studies and Business Plans in Abu Dhabi. …

Dubai Extends the Freeze on Government Fees to Support Local Economy and Businesses Dubai has extended a three-year freeze currently in place on fees charged for certain government services until 2023, accord…

Abu Dhabi Government Support for SMEs demonstrates their importance to UAE Last year, the government of Abu Dhabi announced that they would allocate 15% of annual procur…

Abu Dhabi – Economic Overview Abu Dhabi is considered the wealthiest emirate in UAE, in terms of per capita income and Gross Domestic Product (GDP). The estimated GDP for the year 2020 was approximately AED 1.47 trillion (USD 401 billion) which contracted by 7.5% compared to the previous year, because of the low oil production and COVID19 outbreak. The GDP Per Capita for the same period accounted for AED 160,000 (USD 43,005). The economy is expected to grow at a rate of 2.2% between 2021-2023. The oil and gas sector is the primary source of Abu Dhabi’s GDP contributing to more than 40% of the overall value. However, with the economic diversification strategies of the UAE government and its initiatives to boost the development of the Emirate’s non-oil and gas sector, is gradually lowering the dependency on oil & gas. Abu Dhabi injected approximately AED 50 billion (USD 14 billion) to support small local businesses, research and development, tourism and entertainment industries to increase the GDP contribution of the non-oil & gas sector. The government aims to boost the private sector’s contribution to Abu Dhabi’s GDP from 32% in 2019 to 37% in 2021. In 2030, the emirate aims to have a sustainable economy that is not dependent on the oil and gas sector. Abu Dhabi – COVID19 Implications  Due to the Covid-19 outbreak, 2020 was an extremely challenging year for Abu Dhabi. Experts forecasted a decrease in GDP by 3-4% in the forthcoming years. Despite this, the economy of Abu Dhabi has already started to recover from the pandemic thanks to an economic stimulus package launched by the government to ensure that Abu Dhabi’s economic diversification goals are achieved and the impact of the corona-virus outbreak on citizens and businesses were substantially lowered. Investment Opportunities in Abu Dhabi This Abu Dhabi government is quite optimistic about its economic growth in the forthcoming years. They predict that Abu Dhabi’s economy will grow at the level of 6-8% in 2021 and 2022, as a result of foreign investment, government spending, the oil price rebound and activities within the financial services. Furthermore, the emirate is planning to invest in advanced technology, such as e-commerce and artificial intelligence, since Abu Dhabi is positioning itself as a tech hub and attracting companies in healthcare, agricultural technology, and renewable energy sectors which are considered to be crucial for the emirate’s economic growth. Abu Dhabi provides excellent opportunities for foreign investors and multinational companies across healthcare, renewable energy and agricultural technology companies to enter and establish their business in the Emirate. Research Konnection is the best rated Market Research Company in Dubai assisting clients in business setups and expansion in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in market research, feasibility study and business modelling. Feel free to reach out to us at hello@researchkonnection.com…

Abu Dhabi’s Industrial Sector a Major Contributor towards Non-Oil GDP The report, issued by the Industrial Development Bureau of Abu Dhabi Department of Economic Development revealed that Abu Dhabi’s industrial sector contributed to approximately 10.7% of the non-oil GDP and 6.3% to the overall GDP for the year 2020. More than 51 industrial facilities started their production last year in UAE, which had a total investment of AED 4 billion (USD 1 billion). More than 35 of these facilities went into production in Abu Dhabi, while 11 in Al Ain and 5 in Al Dharfa. The rise in industrial facilities in UAE, especially in Abu Dhabi, reflects the growing role of the industrial sector in driving the emirate’s sustainable economic development. Metal, food, chemicals, equipment and machinery accounted for more than 50% of the new facilities. Major Industrial Facilities in Abu Dhabi Comprises of: Metal Food Chemicals Equipment Machinery Abu Dhabi Government has taken measures to promote the role of the industrial sector as a key driver of sustainable economic development. Some of the major factors that they focused on are enhancing Foreign Direct Investment (FDI) and by providing incentive packages for the business operating in the sector. Despite the pandemic situation impacting economies and investments around the world, Abu Dhabi has seen a streamlined investments from the FDI during the year 2020. This reflects investors’ confidence in the Emirate. Several incentives, initiatives and advantages make Abu Dhabi a centre for attracting investments across the region. Abu Dhabi Industrial Sector – Performance More than 283 industrial licenses were registered in Abu Dhabi, among which 171 were ‘industry pioneer’ licenses, 61 were ‘under construction’ licenses and 51 ‘production’ licenses. The total industrial licenses in Abu Dhabi reached 1,694, for the year 2020 with the overall value estimated to be AED 553 billion (USD 145 billion), including licenses to 839 facilities that were already under production, with an estimated value of AED 362 billion (USD 98.5 billion), 546 facilities which were under construction with an estimated value of AED 181 billion (USD 49.2 billion) and 309 industry pioneer licenses. Chemical industries constitute the highest investment value, reaching AED 211 billion (USD 57.5 billion), followed by energy and sustainability with AED 202 billion (USD 55 billion), construction and glass industries AED 44 billion (USD 12 billion), equipment and machinery AED 10 billion (USD 2.7 billion), food AED 8 billion (USD 2 billion) and other industries around AED 6 billion. (USD 1.6 billion) Investment Opportunities in Abu Dhabi Industrial Sector Over the past 15 years, Abu Dhabi has invested more than AED 51 billion (USD 14 billion) to establish robust industrial infrastructure. It continues to be a key contributor to GDP and major contributor to diversification strategy, moving away from oil and gas based growth. The sector benefits from consistent commitment from the Abu Dhabi Government in line with the Abu Dhabi Economic Vision 2030, and offers businesses cutting edge facilities supporting advanced manufacturing techniques. These provide significant investment opportunities in the Abu Dhabi Industrial Sector. Research Konnection is one of the leading market research companies in Abu Dhabi and UAE. Feel free to reach out to us if for market research, feasibility study and business planning requirements in the United Arab Emirates. …