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As the world grapples with the coronavirus pandemic, it’s fair to say that some countries have been significantly less-affected than others. Take the UAE, for example, which reported its 153rd case on Saturday and a relatively low rate of infection in thriving business hubs such as Dubai.
For firms and employees who have been affected, Dubai banks will be offering comprehensive relief measures to their customers, in a bid to ease the financial pressures that have stemmed from the coronavirus outbreak.
In the current climate, this is arguably an excellent reason for international brands to target the Dubai marketplace, as they look to adapt their business models and optimise profitability in a constantly changing global landscape. It’s not the only reason, however, and there are others that you should keep in mind as an entrepreneur.
The UAE’s Economy is Growing
Irrespective of the coronavirus outbreak, the UAE’s economy continues to grow at an impressive and seemingly relentless pace.
This trend is sure to continue in the medium and long-term too, with the International Monetary Fund (IMF) having recently hiked its forecasts for economic growth in the UAE to 3.7% in 2020.
Of course, this will have to be adjusted to account for the fiscal impact of Covid-19, but in general terms there’s little doubt that the UAE offers significant growth potential to firms across multiple markets.
At the heart of this growth is the continued diversification of the UAE economy, which is now less-reliant on oil and increasingly focused on markets such as tourism, real estate and commodities.
The Sheer Range of Growth Markets in the UAE (Including Construction)
The sheer range of growth markets and industries in the UAE is certainly compelling, with construction offering a prime example and one that remains the main pillar of the region’s sustained economic diversification strategy.
Incredibly, this sector has recorded remarkable growth of 7.7% year-on-year in recent times, while a continued increase in investment can largely be attributed to Dubai’s ‘Expo 2020’ scheduled for October 20th of this year.
Of course, there’s no guarantee that this will be hosted given the recent outbreak, but if it does go ahead it will attract stakeholders from across the globe and drive further infrastructure spending across the board.
This is also great news for investors and the commodity markets associated with real estate, which are growing incrementally nationwide.
A Green Light for 100% Foreign Ownership
In recent times, the UAE government announced its ground-breaking decision to allow 100% foreign ownership of companies in the UAE.
This is part of a wider, ambitious initiative to revolutionise the visa system in the region, as the authorities look to attract top international talent and provide long-term stays for a wealth of professionals, entrepreneurs and property owners.
This rule applies to most types of enterprise and marketplaces too, while it has provided an immense boost to small and independent businesses throughout the UAE.
It has also boosted the value of the dirham and its outlook considerably, creating more opportunities for forex investors both at home and overseas.
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