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August 27, 2022
UAE is witnessing a massive influx of investors as the best country for entrepreneurs
Denis Skvortsov
Luxury Properties

Scott Cairns, the managing director of Middle East-based Creation Business Consultants, shares his reactions to the Global Entrepreneurship Monitor’s ranking of the UAE as the top nation in the world for startups and entrepreneurs

Scott Cairns

The UAE ranked first globally on the list of best countries for entrepreneurs according to the Global Entrepreneurship Monitor’s (GEM) 2022 report.

The report showed UAE scoring a higher NECI of 6.8 in 2021; ahead of Netherlands, Finland and Saudi Arabia; proposing UAE as the preferable hub for investors and business start-ups; showing a 17 percent increase from 2019.

The ranking comes as a declaration that the UAE policy followed in achieving its 50th vision is effective and an affirmation to Sheikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai statement: “Becoming number one is not impossible – the word impossible doesn’t exist in our dictionary.”

UAE is “adamant” about regulation, key to powering startup growth, says minister

The GEM report refers the ranking to UAE’s strategies and procedures set to support established entities and new businesses during the highly uncertainty period of Covid 19 pandemic and support of women entrepreneurship.

Recent statistics further support the deserved ranking. Ministry of Economy reported $20.7 billion in foreign direct investment during 2021, an increase of 3.9 percent from 2020.

The predominant industries of attraction mainly being “traditional and renewable energy, oil and natural gas, financial services, insurance activities, real estate, health, industry and agriculture.”

On the micro-level; the Department of Economy and Tourism (DET) in Dubai revealed that Q1 of 2022 showed a 58 percent growth from Q1 2021 in newly issued business licenses; while Abu Dhabi Department of Economic Development (ADDED) recorded in 2021 a 15.8 percent increase in renewed economic licenses and an increase of 21.5 percent of newly issued licenses compared to 2020; noting that a 44.5 percent growth was accounted for new licenses for foreign investors.

Rashed Abdulkarim Al Blooshi, Under-Secretary of ADDED referred the positive performance of the Abu Dhabi economy to reduction of 71 percent in business setup requirements and 90 percent in renewal fees introduced by the Investor Journey programme initiative.

Furthermore, results from the Kearney’s FDI Confidence Index for 2021 also support the UAE position within the GEM 2022 report.

UAE
The UAE Ministry of Economy reported $20.7 billion in foreign direct investment during 2021, an increase of 3.9 percent from 2020.

The index marked UAE first in the Arab region and 15th worldwide in terms of business experts and investor’s opinion on the market that will attract the most business investments in the next three years.

The UAE came ahead of Singapore, Australia, Portugal, Denmark, Ireland, Brazil and Finland; reflecting foreign investors’ confidence in the UAE economy and future outlook.

The UAE yet continues its aim to maintain at least a 6 percent growth in foreign direct investment for year 2022; according to Abdullah Bin Touq, Minister of Economy, who stated that the UAE’s target for FDI flows for 2030 to reach AED 3 trillion.

Accordingly, the UAE has set number of economic, legal, and social reforms and strategies to support and facilitate its economical vision.

These include the introduction of the Golden Visa, remote-working visa, and longer-term residency visas, changes to labour laws, including the permissibility of remote and hybrid working conditions, the introduction of the new work permit law within the private sector for teenagers above the age of 15, reforming trading and commerce regulations allowing for 100 percent foreign ownership to types of activity license; and the major shift of the working week from Monday to Friday to accommodate international relations and global market requisites.

Moreover, the UAE has been supporting the growth of the non-oil sector through establishing and initiating relations with global partners; including India, Indonesia, and South Korea.

Abu Dhabi Department of Economic Development (ADDED)
Rashed Abdulkarim Al Blooshi. Under-Secretary of ADDED.

The UAE-Israel Comprehensive Economic Partnership Agreement also aims to strengthen investments within the agricultural technology, medical technology, new energy solutions and advanced technology sector in the country.

Marcos Troyjo, President of the New Development Bank, described UAE as a “prime example of an economic miracle” at the 4th edition of the Global Business Forum Latin America 2022. Troyjo’s statement reflects the visible efforts of the country during its hosting and organising of Expo 2020 despite the challenges imposed by the Covid-19 pandemic on the global economy.

The UAE has put efforts to make the Expo season a success as well as a transformation to a better and stronger market in the present and the future; confirming its position as a global market leader and a major partner in the global economic world.

Whilst an accolade be boosted to number one, the real benefit the UAE is seeing is a dramatic uptick in inbound FDI.

We are currently witnessing a massive influx of investors from Europe entering into the UAE market due to the exceptional market conditions and incentives that new market entrants are being offered by the government.

Published
September 13, 2022 20:41
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