UAE witnessed a 17% increase in non-oil trade in 2020, which crossed the AED 1 trillion mark for the first time. This has established a benchmark for non-Gulf countries to diversify their economy apart from focusing on oil trade. The contribution of non-oil GDP in 2022 is AED 1.058 trillion. It mainly includes wholesale and retail trade at 19% and manufacturing at 12%. Also, financial and insurance services are at 11%, construction at 10%, and real estate at 8%.

In addition, according to reports by UAE Central Bank, the economy grew by 8.2% in Q1 of 2022. This is forecasted by 5.4% annual growth, followed by 4.2% in 2023. The GDP measured purchasing power to reach $779 billion in 2022, and it’s about time it will hit $1 trillion.

Additionally, numbers indicate that UAE has a strong foundation in a global world where business activities are slow after covid-19. The country has seen a tourism boost and emerged as one of the most prosperous countries with strong economic fundamentals.

The diversification approach adopted by UAE is well thought out. It does not only look at oil and gas as resources but also vast opportunities in foreign trade, hospitality, aviation, and tourism to strengthen economic growth.

Moreover, Barakah Nuclear Power Plant now supplies power to the UAE grid, the world’s largest single-site solar Park. This is enough evidence that UAE is now focusing on Clean Energy solutions.

Diversification in the economy

UAE’s financial sector is proliferating to new heights. Custom financial regulatory systems at Abu Dhabi global market and Dubai International Financial Centre offer 100% foreign ownership without any income tax complications. Also, landmark Residency reforms, long-term visas, and foreign policy are attracting Global professionals and investors. This overtakes some of the best financial centers, such as London and New york.

This new and updated culture of creativity digitalization has become a key factor in UAE’s economic diversification. Along with the infrastructure that attracts Global investors and ventures in the country.

After establishing Dubai’s virtual assets regulatory authority in 2022, the government has also focused on virtual assets, indicating its vision toward a digital framework. IPOs in the Dubai financial market and Abu Dhabi exchange are no different. IPOs like Salik, and Abu Dhabi ports have huge interest among investors. DEWA raised $6 billion, the biggest since 2019 in the MENA region. Despite Global inflation and market volatility, UAE remains solid, and investors are continuously approaching the country because of its flushing future.

Follow @RGEstateUAE social handle for more interesting real estate news!

For all the latest real estate news, Investment Opportunities in Dubai, and business news from the UAE, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube Channel, which is updated daily.