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Nurturing the Business and Startups Ecosystem The UAE’s efforts to diversify the economy away from its heavy dependence on oil revenues are opening more investment opportunities in the non-oil private sector and are critical to achieving sustainable growth
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hile the UAE is by far the most diversified economy in the Mideast region, oil still contributes significantly to the country’s gross domestic product (GDP). Any volatility in the global markets and the oil industry could dampen confidence among investors and affect the country’s economic performance. Despite the impact of the twin shocks of COVID-19 and low oil prices on regional economies, the UAE is weathering the negative trend in global markets and analysts remain optimistic about the country’s growth this year.
The UAE has a slightly better public debt outlook compared to its regional neighbors and the implementation of structural reforms to nurture the growth of the nonoil private sector and the development of transparent rules-based fiscal frameworks is expected to support long-term sustainability. “In terms of ease of doing business, the UAE ranks higher than any other country in the Mideast region. The country is home to two international finance centers, Dubai International Financial Centre and Abu Dhabi Financial Markets, a point of attraction for institutional investors,”
said Neil Petch, Chairman & Co-founder, Virtuzone. The Emirates’ efforts to diversify the economy away from heavy dependence on oil revenues are opening more investment opportunities in the non-oil private sector and are critical to achieving sustainable growth. Over the last 24 months, the government has updated and enlarged the scope of available residence and tourist visas, to boosts UAE’s global competitiveness. Initiatives like this one are expected to attract more investors and entrepreneurs. The UAE is also introducing new initiatives in several sectors including finance and technology, including structural reforms to bolster growth and strengthen the country’s status as an international investment destination. As part of the government’s initiatives to open its economy, the country has one of the highest vaccination rates in the region together with Israel and Bahrain. “The UAE boasts of one of the world’s most organized and agile structures when it comes to combatting COVID-19. The country has one of the highest inoculation rates in the world,” said George Hojeige, the CEO of Virtuzone. IHS Markit said that business conditions in the UAE’s non-oil private sector continued to improve in April, as the country’s business activity increased reaching a 20-month high as its economy recovers from the pandemic.
THE UAE BOASTS OF ONE OF THE WORLD’S MOST ORGANIZED AND AGILE STRUCTURES WHEN IT COMES TO COMBATTING COVID-19. THE COUNTRY HAS ONE OF THE HIGHEST INOCULATION RATES IN THE WORLD. l eft to right. Neil Petch, Chairman & Co-founder, Virtuzone. George Hojeige, CEO, Virtuzone. Geoff Rapp, the Co-founder of Virtuzone.
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MEABUSINESS
Business News for the MEA region
GEORGE HOJEIGE
