Confidence in UAE’s economy will spur greater innovation

Recent reports show the GCC country’s efforts to diversify its economy are paying off at a global level
Gulf News

A new report shows that the UAE’s efforts to diversify its economy are being recognised on a global level. This is not just a recognition either, but evidence that shows global investors look at the country as a place where their investments are both safe and likely to show a return.

The report by A.T. Kearney shows that the UAE ranks 21st on the world on its Foreign Direct Investment (FDI) index. It is significant that during this period of geopolitical tension, rising protectionism and regional economic transformation caused by changes in global oil prices, the UAE is the only country in the Middle East region to break into the top 25. According to the report, the inflow of foreign investments into the country has remained steady in recent years, reaching $11 billion (Dh40.4 billion) in 2014 and 2015. But this report doesn’t just show how well the UAE has been doing, instead it ranks markets that are likely to attract the most investment over the next three years.

The UAE’s ranking comes largely, the report says, from recent economy policies enacted by the government, including updated bankruptcy and investment laws and simplified to boost inward investments. Also noted as a factor is the UAE’s National Innovation Strategy, launched by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in 2014. Rudolph Lohmeyer, Vice-President of A.T. Kearney’s Global Business Policy Council, called it a “deep, unwavering commitment to innovation”.

This confidence in the economy combined with the country’s commitment to technology will only continue to build upon the UAE’s position as a global technology hub. Not only will the country see more acquisitions of locally-established companies such as Souq.com by global giants such as Amazon, it will also see additional financial support for technology start-ups. This ultimately achieves the UAE’s oft-stated goal of becoming a knowledge economy.

The A.T. Kearney report is not the only report to show the results of the government’s initiatives. In the World Bank’s Doing Business 2017, the UAE is highlighted as one of the top 10 economies that made the greatest improvements in business relations.

The culmination of these reports show that the UAE has made significant steps towards diversifying economy into one of the strongest and vibrant in the region, and will continue to build up its status as a global gateway. It is a milestone in development that the UAE has a right to be proud of.

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