The 47
thNational Day...
The UAE Blossoms with its Major Civilizational and Developmental Achievements
"Youth Council for the Future's Economy", a leading initiative to empower the youth of the UAE
The package of economic legislations enhances the
competitiveness of the UAE
The annual meetings of the UAE government constitute a platform to shape the future
Ministry of Economy
32 2018
Issue
December
[email protected] communications and suggestions
Editorial Team at the Ministry of Economy
Offices of the Ministry of Economy General Supervisor : Hamid AlMuhairi Managing Editor : Emad Diyab Al Ali Translation Supervisor : Lobna Salah ElDine Coordination : Mohamed Ibrahim Distribution : Salah Al Abri Photography : Mohamed Shafy Design & Layout :
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Emirates
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Abu Dhabi
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Dubai
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Sharjah
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Al Ain
[email protected] communications and suggestions
Editorial Team at the Ministry of Economy
Offices of the Ministry of Economy General Supervisor : Hamid AlMuhairi Managing Editor : Emad Diyab Al Ali Translation Supervisor : Lobna Salah ElDine Coordination : Mohamed Ibrahim Distribution : Salah Al Abri Photography : Mohamed Shafy Design & Layout :
Fax Phone
Emirates
02 626 0000 02 613 1111
Abu Dhabi
04 358 1811 04 314 1555
Dubai
06 528 5333 06 528 1222
Sharjah
06 754 7979 06 747 1333
Ajman
07 228 0099 07 227 8000
Ras Al Khaimah
06 766 4426 06 766 4426
Umm Al Quwain
09 222 0041 09 223 3330
Fujairah
03 766 4880 03 765 5268
Al Ain
32 2018
Issue
December
8 Minister's Message The Glorious United Arab Emirates
10 National Day
The 47th National Day...
The UAE Blossoms with its Major Civilizational and Developmental Achievements 15 Making the Future
Quality Initiatives to Enhance the Economic Performance and Stimulate Investment 20 Incentives
Government incentives and generous spending enhance economic growth
22 Sustainable Growth
The UAE is the Equivalent of Sustainable Rapid Growth
26 The Youth
"Youth Council for the Future's Economy", a leading initiative to empower the youth of the UAE
28 Artificial Intelligence Artificial Intelligence is the Basis of the UAE Economy's Future
32 Leadership
The UAE is the pioneer of digital transformation in the region
35 Economic Legislations The package of economic legislations enhances the competitiveness of the UAE
40 Tourism
The Tourism Sector is strengthening its Role as the Main Driver of Growth 44 Originality and Modernity
Umm Al Quwain… Authenticity of the past and modernity of the present
48 Occasions
Overwhelming Feelings of Patriotism in Celebrating of
"National Day" and "Flag Day"
50 Occasions
The Ministry of Economy Annual Forum... Gratitude and Appreciation for the Distinguished Partners and Employees
52 Activities & Events 8 Minister's Message
The Glorious United Arab Emirates
10 National Day
The 47th National Day...
The UAE Blossoms with its Major Civilizational and Developmental Achievements 15 Making the Future
Quality Initiatives to Enhance the Economic Performance and Stimulate Investment 20 Incentives
Government incentives and generous spending enhance economic growth
22 Sustainable Growth
The UAE is the Equivalent of Sustainable Rapid Growth
26 The Youth
"Youth Council for the Future's Economy", a leading initiative to empower the youth of the UAE
28 Artificial Intelligence Artificial Intelligence is the Basis of the UAE Economy's Future
32 Leadership
The UAE is the pioneer of digital transformation in the region
35 Economic Legislations The package of economic legislations enhances the competitiveness of the UAE
40 Tourism
The Tourism Sector is strengthening its Role as the Main Driver of Growth 44 Originality and Modernity
Umm Al Quwain… Authenticity of the past and modernity of the present
48 Occasions
Overwhelming Feelings of Patriotism in Celebrating of
"National Day" and "Flag Day"
50 Occasions
The Ministry of Economy Annual Forum... Gratitude and Appreciation for the Distinguished Partners and Employees
52 Activities & Events
“Diversified global competitive economy based on knowledge & innovation, lead by Emiratis”
Mission
“Achieve national economy’s development and competitiveness. Prepare for an
environment that encourages the practice of economic businesses
by enacting and modernizing economic legislations and
external trade policy, and developing national
industries and exports, and tourism
development by developing its
products and
regulatin g competitiveness and SME’s sector, protecting consumer rights and intellectual property, supporting the
efforts of cooperative societies, diversifying economic activities, popularization of smart apps. All the above should be lead by Emirati competencies in accordance with global standards of creativity and innovation and knowledge economies”
Values
Innovation, Respect of Rights, Sustainability, Integration, Competitiveness, Excellence and Team Spirit.
Eng. Sultan Bin Saeed Al Mansoori
Minister of Economy
The strength of the Union is manifested today by an unprecedented cohesion between the leadership and the citizens to consolidate the approach of integration, foster the values and meanings of unity in their souls by motivating them for team work, cooperation and determination to protect the fathers' heritage, move ahead with what they have started, maximize achievements and even achieve miracles, and elevate the glorious UAE to the highest ranks at all levels, in order to lead and make the future, and ensure a better life for future generations.
The great achievements of the UAE confirm that the ‘Union’ is the highest and most successful experience at the regional and international levels.
It is our national duty to maintain what has been accomplished by this unique experience, along with its precious benefits and achievements, to keep the UAE at the forefront of excellence and leadership. The great revival we are witnessing today has been achieved, thanks to the comprehensive development vision of our wise leadership and its keenness to strengthen the State's capabilities to elevate the UAE to the highest ranks and to ensure a secure and stable life for its citizens and residents alike.
The 47th Anniversary of the National Day is firmly rooted in the memory of our people. We are proud of the achievements, sacrifices and efforts of our founding fathers, spearheaded by Sheikh Zayed bin Sultan Al Nahyan.
They established the pillars of the UAE's
‘Union’, recalling their lofty values based on tolerance, love, cooperation and adaptation to different cultures and religions. This is the approach that our State has taken from its inception to the present day, in which the UAE has become an advanced country that moves forward intelligently and relies on creativity, innovation, strategic planning, investment in talents, human capacities and robotic solutions, to
The Glorious United Arab Emirates
enhance its position as a global center for the Fourth Industrial Revolution.
National Day is the most important and cherished occasion for the Emirati people. It is the anniversary of the birth of a well-established, united country where the people support each other. It is also the day when aspirations and hopes began paving the way for comprehensive development throughout the country;
promising a great and prosperous future and triggering a qualitative leap in all aspects of life. Every citizen and resident in United Arab Emirates recalls with gratitude the great efforts of Sheikh Zayed Bin Sultan Al Nahyan, and the other founding leaders, who embodied the values of self-sacrifice, determination, and dedication to respond to the call of unity and union.
They united and laid the foundation for building a modern state and providing a comfortable life for the UAE's people.
They dedicated all the sources of wealth that God bestowed to them, to achieve the highest purpose and objective, which is to elevate the State to the highest ranks at all levels.
The achievements of the UAE under the Union have fostered patriotism and a love for original national values in the UAE's people, established their sense of pride and strengthened their unity and loyalty to the wise leadership that kept its promises and continued to create milestones, in addition to efforts made to engrave the name of the UAE in the honor records of all international forums, achieve happiness for the people of the UAE and maximize achievements and gains that enable them to become the happiest people in the world. In the light of our glorious union, our beloved State focuses on its bright future and its hopes. It makes dreams come true and imagination a reality, by employing the Fourth Industrial Revolution technology tools for the well-being of society and the comfort of its members.
The wise leadership always wants us to be in the lead… A homeland for happiness. Our beloved nation is embarking on a rapid growth path towards the highest level of global competitiveness, through national initiatives launched to support the economy and fast track development.
This is in order to achieve the well- being of the citizens and put the UAE in the forefront of world countries that seek to shape the future, anticipate its variables and meet its challenges by a process that enhances the quality of human life and elevates it to a level that humans aspire to reach.
This is clearly reflected in the use of the Fourth Industrial Revolution and its tools in empowering societies and finding innovative solutions to challenges. This represents a major objective for the UAE and an engine to fuel its efforts to shape the future and develop the government capabilities, which contributes to achieving the best results and strengthens the position of the UAE as a leading world country. There is no doubt that behind every great success, there is a wise leadership that has thought, planned and launched initiatives, granted opportunities, provided opportunities and monitored its implementation day and night. Along with this great leadership, there are hardworking teams who have exerted every effort until they achieved this success, and deserve the appreciation and pride of the leadership. “I am proud of every individual who works with me, and of every individual who works for the UAE and the people of the UAE,” said His Highness Sheikh Mohammed bin Rashid Al Maktoum. On this occasion, we renew the pledge of loyalty and belonging to this homeland and its wise leadership, continue to follow the footsteps of the Founding Father Sheikh Zayed bin Sultan Al Nahyan, and move forward with steady and confident steps to continue making achievements and consolidating gains.
On the 2nd of December, the UAE celebrated the anniversary of its 47th national day, blossoming with its major civilizational and developmental achievements.
Moreover, its unitary and developmental experience became more consolidated and rooted and, became an example for what unrelenting strong will which doesn't recognize the impossible can achieve, as the efforts and dedication of the founding father, the late Sheikh Zayed bin Sultan Al Nahyan, and the continued developmental approach by the wise leadership of His Highness Sheikh Khalifa bin Zayed Al Nahyan, president of the state, have resulted in the establishment of a modern state which is developed in all fields and at all levels.
The national day celebrations had a special importance this year, as they coincided with the "Year of Zayed". Throughout 2018, the state celebrated the 100th anniversary marking the birth of the founding father of the state, the late Sheikh Zayed bin Sultan Al Nahyan as a gesture of gratitude and appreciation to the life journey of the founder of the UAE and the builder of its renaissance.
The 47 th National Day
The UAE Blossoms with
its Major Civilizational and
Developmental Achievements
The UAE has been an exceptional example in all aspects of development during 2018, due to its scientific, economic and social achievements, which represent a true addition by the UAE and through which it managed to progress with firm steps towards a better future for its people and the Arab and Islamic nations.
Stability Decrees
In terms of legislations, the UAE continued its approach aimed at developing its legislative structure, and issued a big number of decrees and federal laws that aim to enhance the safety and security of the society and achieve economic and social stability for the citizens of the state.
The most prominent decrees include the decree of dealing with the crimes of money laundering and combating terrorism and unlawful organizations financing, and the decree of public debt, which regulate the general rules that govern the issuance of public debt documents and support the development of highly efficient financial market in the state.
The decree of foreign direct investment (FDI) is considered one of the most prominent decrees issued this year. Moreover, His Highness, President of the state has issued the federal law No.5 of 2018 on the endowments.
The UAE has maintained its upward pattern in the reports of global competitiveness of this year, and consolidated its position at the forefront of the Middle East and North Africa region.
At the economic level, the national economy has maintained its balanced growth, as the growth rate of national economy this year amounted between 2.5% and 3%, provided that growth will accelerate
in 2019 surpassing 3%. On the other hand, foreign investments are expected to witness a growth between 15% and 20% during 2019 and 2020, where the current FDI stock in the UAE amounts to 130 billion Dollars.
Government incentives constitute a very powerful boost to attract foreign investments as these incentives have met the requirements of international investors and came in line with the modern principles of attracting investments.
In general, the majority of companies in the UAE are making profits. There are changing global conditions that vary from year to year, and the return of investments depends heavily on the performance of companies.
Accordingly, we might find large profits in a certain year and less profits or even loss in another.
In terms of the federal budget of the current fiscal year, it amounted
to about AED 53 billion and 369 million. The sectors which have a direct relation to citizens and their services acquired the largest share with an amount of AED 26.3 billion. All emirates of the state witnessed the implementation of large development projects that contributed to enhancing the quality of services provided for the public and created thousands of job opportunities.
Regional and International Leading Position
The UAE topped the states of the region in more than 100 main development index in addition to many other indexes, such as the indexes of infrastructure, quality of roads, quality of air and maritime transport infrastructure, security and safety rates, females' access to university education rate, government efficiency and trust in government and others.
The national economy has accomplished a lot of achievements as a result of adopting the policy
The UAE's unitary and developmental experience is getting more consolidated and deep-rooted
The UAE achieved
advanced positions in
global competitiveness
of diversifying the resources supplementing national economy, according to the observatory monitoring the movement of indicators in the sectors that constitute the central core of this wise approach aimed at preparing for the post-oil era.
The success achieved by the state in terms of economic base diversification was based on many elements represented in increasing the private sector's contribution to comprehensive development in general and developing economic sectors with high added value in particular.
The list of sectors that contributed to increasing the gains of the state in terms of economic diversification included: transformative industries, knowledge industries, aviation and space industries, transport and storage, financial services, tourism, new and renewable energy and other sectors.
Economic experts unanimously agree that the development of these sectors have a great impact represented in providing the suitable climate to attract FDI and enhance and activate innovation at all levels.
They asserted that this development
created a motivation to establish industrial areas and free zones, form partnerships with multinational global companies and develop the legislative and organizational structure in general.
Figures and Indicators
The digital reading of revenue list achieved by the UAE as a result of diversifying its economic base indicates that the GDP in current prices increased from AED 58.3 billion in 1975 to AED 1.405 trillion in 2017, and the contribution of non-oil sectors to current GDP increased to AED 1.092 trillion compared to AED 25 billion during the same monitoring period.
As for GDP in fixed (constant) prices, it rose from AED 77.5 billion in 1975 to AED 1.422 trillion in 2017, and the contribution of non-oil sectors to GDP in fixed prices increased from AED 32.2 billion to AED 1.003 trillion during the same period.
The indicators of successful economic diversification show an increase of the contribution of non- oil sectors to current GDP to about 77.7% in 2017 after it was 42.9%
in 1975, compared to the decline of contribution rate of oil sectors to current GDP from 57.1% in 1975 to 22.3% in 2017. Moreover, the contribution rate of non-oil sectors to GDP in fixed prices increased to 70.5% in 2017 after it was 41.5%
in 1975. On the other hand, the contribution rate of oil sectors to GDP in fixed prices declined from 58.5% in 1975 to 29.5% in 2017.
In terms of the seven sectors that constituted the driver of economic diversification, the sectors of Wholesale and Retail Trade and Repair of Motor Vehicles and Motorcycles, Financial and Insurance Activities, Construction and Building, Transformative Industries, Public Administration and Defense; Social Security, Real Estate Activities, and Transport and Storage, had the lion's share in terms of value and share in the production of non-oil sectors during the period 2010-2017, as their contribution value increased form AED 571 billion to AED 766.3 billion by the end of last year, which reflects
The UAE celebrates
National Day and
Zayed's centennial
with civilizational
achievements
the crystallization of the bases of a true diversified economy that relies on productivity and services instead of oil.
Space Manufacturing Age
In 2018, the UAE officially entered the age of space manufacturing after its successful launching of "Khalifa Sat", 100% manufactured and developed by Emirati engineers, increasing the number of satellite controlled by the UAE to 9 satellites with investments of more than AED 22 billion.
The United Arab Emirates Space Agency, in cooperation with Khalifa University for Science and Technology and American University of Ras Al Khaimah, announced the launch of the satellite "Muzen Sat" to study the earth's atmosphere.
In early September, the UAE announced to the world that it
has chosen the first two Emirate astronauts, Hazaa Ali Abdan Khalfan Al Mansoori and Sultan Saif Muftah Hamad Al Nayadi to go to the International Space Station.
In last October, the United Arab Emirates Space Agency concluded a historical agreement with the National Aeronautics and Space Administration (NASA) to define the framework of cooperation between the two parties.
Comprehensive
Empowerment of Homeland and Citizens
The UAE development experience is considered an example in management and strategic thinking based on innovation, creativity and teamwork spirit. Since the establishment of the state, the government worked to foresee the future and exert all efforts to build a remarkable renaissance, as the UAE has raced against time to become today one of the developed countries, due to great achievements known far and wide. These achievements were made in its comprehensive development movement, which was reflected positively on all citizens with no exception and helped providing a decent life for them and
The UAE topped the
states of the region in
more than 100 main
development indexes
increase their happiness. The field of comprehensive empowerment of homeland and citizens has always been a story about the UAE's success through the approach of the wise leadership, which is the cornerstone of integrating the plans and strengthening the unified vision on the path of excellence towards achieving the UAE centennial. The state aims through this vision to the aspired future which meets the aspiration of the citizens of the UAE.
Those who follow the developments of the UAE's success story realize that it stems from an in-depth reading of the past and present and a strategic planning according to the best international practices in this field to define the future visions and general trends of public and private sectors' institutions, and ensure the transition of these objectives to
actual plans and tangible projects, through which it will work to reach its goals in the medium and long terms.
Comprehensiveness and Integration
The most important characteristics of the vision of the UAE government in all strategies it has launched are integration, comprehensiveness and focusing on the human element which is considered a starting point towards achieving the aspired goals, in parallel with focusing on education, as investing in human capital is the most important element on the long run. This concept was present in the formulation of "the strategy of the UAE government 2008-2010",
"the strategy of the UAE government 2011-2013" and "the strategy of the UAE government 2014-2016",which defined the medium term trends of the government in various sectors, and dividing them into strategic and operational plans for federal authorities, through which they implement initiatives and projects, according to specified budgets
National economy maintains its balanced growth which
increases its gains
allocated for the plans, in order to achieve the UAE vision 2021 and the objectives of the government in terms of meeting the citizens' needs and developing government work to achieve sustainable development and enhance the position of the state on the world competitive map.
In order to achieve the UAE vision 2021 in its golden jubilee, which celebrates the 50th anniversary of its union, the work is in progress to implement the national agenda of the UAE within 6 main areas which cover 52 indicators. This vision is an ambitious vision based on a solid ground, and the national indicators are characterized by their long-term and measurement of key outcomes of national priorities performance.
Moreover, most of these indicators compare the rank of the UAE in international indicators with the ranks of various countries. These indicators undergo a regular follow-up by the leadership of the government in order to ensure achieving its goals by 2021.
6 initiatives to regulate e-trade and shape the future of economy
The annual meetings of the UAE government constitute a platform to shape the future, launch creative and innovative initiatives to enhance the growth of all sectors in the state, including the economic sector and consolidate the international position achieved by the UAE in various fields.
In order to establish a new phase of national work characterized by integrated plans and the teamwork spirit of the UAE, the annual meetings of the UAE government were launched as the national project that combines all federal and local bodies and national actors to discuss the current development challenges and define a developmental vision for the future of the UAE down to its centennial, unifies the government work as it constitutes a unified system at the federal and local levels, discusses the development related topics on annual basis at all governmental levels in the presence of all decision makers, and involves
The annual meetings of the UAE government constitute a platform to shape the future
Quality Initiatives to Enhance
the Economic Performance and
Stimulate Investment
all national sectors in creating the state's vision of development down to the UAE centennial 2071.
As a continuation for the first session, the second session of the annual meeting of the UAE government was held last November, during which the objectives and results achieved so far within the UAE vision 2021were reviewed; the vision that aims to make the UAE among the best countries of the world in various fields, and achieve the highest ranks in various global indicators by the golden jubilee of the UAE in 2021.
Moreover, the meeting discussed the development achieved in the implementation of the previous plans, which is the approach that has always been adopted by the UAE government, manifested in relying
on actual facts and present reality in developing plans, overcoming obstacles and turning them into opportunities, and recognizing the achievements and build on their bases to develop our future visions.
The second session of the annual meetings reviewed the first stage of the UAE centennial 2071 within 30 council meetings, in order to enhance the presence of a unified vision regarding the future infrastructure of the state; moreover, the biggest brainstorming session for 500 government officials was held to define the main ideas and trends of the first stage of the UAE centennial 2071.
The outcome of the achievements made in 2017 and the extent of correspondence with the UAE vision 2021 was reviewed, in addition to launching 7 long-term strategies and more than 100 national initiatives in joint sectors between federal and
local bodies, reviewing the global geopolitical situation and discussing the objectives of the state for the next two years down to 2021.
Foreseeing the Future
Foreseeing the future has become one of the distinguished characteristics of the UAE, which requires working to develop an integrated strategy over the five next decades and ensuring that the UAE is moving forward on the path of opening all the doors towards universality, in a way that meets the aspirations of its citizens and shape the features of the future path of the state, all this in order to realize
3 national initiatives that enhance tourism sector in the UAE
Al Mansoori: the economic sector is abundant with
opportunities that open
the prospects of the
future
the saying of His Highness, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, and Ruler of the Emirate of Dubai "the race for excellence is boundless, and there is no time at which the clock stops ticking".
During the work of the second session of the annual meetings of the UAE government, the government adopted six development initiatives that aim to regulate e-trade at the state level and stimulate the national economy in supporting and organizing the partnership between public and private sectors in order to achieve a growth in non-oil commodity exports and consolidate the position of the state as a destination for distinctive global investments.
Main Sectors
H.E Sultan bin Saeed Al Mansoori, Minister of Economy, asserted that
these meetings draw a clear path for the performance of the main sectors in the state, and develop a well-considered road map to move forward towards achieving the national objectives and launching the first practical development path to reach the aspiration of the UAE centennial 2071, as the leadership of the UAE has provided a leading platform to discuss the challenges, launch strategies and create joint national initiatives and programs that meet the future aspirations of the state.
He indicated that the economic sector is abundant with opportunities that open the prospects of the future by achieving the highest growth rate of commodity exports, regulating e-trade that became at the backbone of economy, monitoring the changes that might occur regarding the sector and developing the infrastructure to keep pace with such changes to ensure a prosperous and sustainable future for the coming generations.
The meeting of the economy workgroup reviewed the instruments of stimulating non-oil foreign trade and the means of developing them. It adopted the initiative of implementing "mechanisms,
strategies and projects supporting export orientation", which include specific projects and initiatives that have a direct impact on achieving a growth in the value of non-oil commodity exports.
Stimulating E-trade
In terms of regulating e-trade, the state plans to adopt a number of regulatory initiatives and frameworks to issue licenses and establish the rules that contribute to motivating the owners of these licenses, including the initiative of "federal e-platform for e-trade", which constitutes a mean to achieve communication and interaction between the licensees and consumers.
The meeting adopted the initiative of "indicative regulatory framework to license the activities of e-trade".
Moreover, the participants of the session adopted the initiative of defining a regulatory framework to
Consolidating the state's position as a destination for distinctive global investments
The annual meetings of
the UAE government
draw a clear path for
the performance of
the main sectors in the
state
establish the rules of transnational e-trade companies, to achieve fair competition between local and global companies in the field of e-trade, in addition to providing a set of incentives for the licensed e-traders in the state, especially citizens, in order to develop the spirit of initiative and innovation.
The UAE government has developed plans aimed at monitoring the future changes in the economy of the state, and the dynamics of infrastructure by adopting the initiative of "issuing an annual report about the prospects of the state's economy". The report relies on the macroeconomic model of the UAE to analyze future development, which is based on the policies of economic diversification and discovering new sources for growth that contribute to a long term economic sustainability.
Economic Diversification
The state has achieved a significant growth in non-oil commodity exports, as they amounted last year to AED 1,612 trillion. According to the statistics of the World Trade Organization for commodity export value, the UAE is one of the most important 20 exporting countries in the world and it is at the forefront of Arab countries in this regard.
The government seeks establishing common rules for consumers and investors to do their business through modern e-devices in light of the continuous growth of this type of trade in the state.
UAE exports have many opportunities for access to international markets.
The UAE enjoys a distinguished geographical location and the availability of air, sea and land shipping routes. It is ranked among the world's leading countries. Moreover, the UAE investments abroad cover more than 100 countries, which contribute to consolidating the name of the UAE as one of the most important markets for high quality exports. The government aims to improve the business environment to stimulate domestic investment and attract foreign investment.
Enhancing Tourism Sector
The annual meetings of the UAE government within the works of their second session that was recently held in Abu Dhabi adopted 3 initiatives aimed at enhancing tourism sector in the state.
H.E Eng. Sultan bin Saeed Al Mansoori, Minister of Economy, said that tourism sector has a priority in the development agenda of the state, as it represents a main pillar
of economic diversification and preparing for the post-oil stage. The discussions during tourism session, held within the annual meetings of the UAE government, reflected the state's commitment to intensify all the efforts between federal and local bodies to develop this sector and improve its competitiveness in a way that serves the strategic goals and UAE vision 2021.
Al Mansoori added that the session of the workgroup concerned with tourism sector has focused on discussing and adopting 3 main initiatives related to developing the tourism capacities of the state, including the national strategy for tourism development, based on foreseeing the future, innovation
Developing a well- considered road map to move forward towards achieving the national objectives
The tourism sector
has the priority in
the development
agenda of the state
and represents a main
pillar of economic
diversification
and technology and achieve tourism sustainability. This would support federal and local trends and ensure the sustainability of tourism sector and its future in light of the rapid changes and increased global competitiveness. Moreover, this strategy aims to analyze the current situation of tourism sector in the state and determining the scope of work and its expected outcomes.
Support and organize the partnership between public and private sectors to increase the growth of non-oil commodity exports
In addition to holding workshops with the concerned parties and tourism sector officials, the UAE tourism ID initiative was launched, which aims at developing a new tourism identity that supports the state's
vision regarding tourism sector and promoting a single destination.
The annual meetings adopted the initiative of tourism sector's enhancement mechanisms, which include conducting a detailed study to develop the file of fees and taxes imposed on tourism sector in the state, and make recommendations that support the orientations of the UAE government and the sector's
growth sustainability and ease doing business related to tourism.
The UAE Position
The meeting discussed the means of improving the performance of the concerned bodies in tourism sector and the joint cooperation to enhance the position of the state in global competitiveness indexes. According to the report of the World Economic Forum 2017, the state was ranked in the 29th place in the index of tourism competitiveness.
Future Orientations
The participants asserted the importance of adopting the future and international orientations by focusing on responsible tourism and consolidate this culture in the local tourism destinations, in addition to focusing on innovation and digital transformation in this sector to increase the revenues and growth and enhance the opportunities of
small and medium enterprises.
Tourism is one of the most prominent assets of the UAE economy and its future strategy for income diversification, as the contribution of this vital sector to GDP amounts to more than AED 161 billion, and this rate is expected to reach 10.6% by 2027 (an annual growth of 3.9%), which would raise the contribution of the sector to AED 234.2 billion. The UAE succeeded in consolidating the main elements necessary for the growth of tourism sector by filling the first place globally in many indexes.
International reports unanimously stated that the UAE economy is drawing near to years of good growth with the support of government expenditure, incentives and predictions of an increase of oil prices, indicating that our national economy has gained immunity and ability to face the various challenges, and it has the flexibility necessary to adapt to any developments, as the policy of economic diversification and the wide production base play a big and increasing role in providing the national economy with more ability to achieve sustainable growth.
The International Monetary Fund's delegation to the UAE raised its projections about the growth of the UAE's non-oil GDP estimated for 2019 to 3.9% compared to 3.5%
expected in the report issued by the International Monetary Fund in May 2017, due to the support of the expenditure plan announced by the emirate of Abu Dhabi with AED 50 Billion during the next three years, in addition to the government incentives to promote investment in the local market.
Natalia Tamirisa, Head of the International Monetary Fund's delegation to the UAE, who recently
Government
incentives and generous spending enhance
economic growth
visited the state, confirmed that the delegation has amended its projections about the UAE's non- oil GDP estimated to be achieved in 2019 to 3.9% compared to the previous projections that defined the expected growth level of the non-oil GDP of the state at 3.5% in 2019.
She added: the delegation raised its projections due to the support of Abu Dhabi's plan to spend AED 50 billion over the next three years, and which comes in line with a number of government incentives and facilitations adopted to increase and promote investment in the local market of the UAE.
She clarified that the estimated growth of the UAE's non-oil GDP reached 2.5% in 2017, expected to reach 2.9% during 2018 and will reach 3.9% in 2019.
As for the growth of the oil and hydrocarbon products sector's GDP, the International Monetary Fund estimates that it will grow by 2.9% in 2018 and reach 3.1% in 2019.
The Fund predicted that the real GDP of the UAE will grow this year by 2.9% and increase to 3.7% in 2019.
Tamirisa asserted that the UAE economy managed to adapt to a great extent to the impacts of the fall of oil prices since 2014, and it managed to absorb them thanks to the government policies and its understanding of the needs of the economy. Moreover, the next few years are showing signs indicating the possibility of achieving a good economic growth.
She said that the delegation of the Fund called for increasing the government expenditure in the UAE during the next years, as well as the flexibility of fiscal policy and the
International Monetary Fund: the UAE's non-oil economy will increase next year by 3.9%
The World Bank
confirms that the UAE's
economy will achieve
the highest growth rate
in the region by 2020
space provided for private sector in economic activities and public business sectors.
The highest growth rate in the region
The World Bank expected that the UAE will reach the highest economic growth rate among Gulf Cooperation Council countries in 2020 by a percentage amounting 3.2%, exceeding the estimated average of all the Middle East and North Africa's countries which is expected to be around 2.8%. In the report of MENA economic monitor, recently issued under the title "new economy for the Middle East and North Africa", the World Bank indicated that it's likely that the UAE economy growth rate will increase this year to 2% compared to 0.8% in 2017, and will increase to 3%
next year then to 3.2% in 2020.
According to the World Bank data, it is expected that the surplus of the UAE's current account will increase this year to constitute 5.3% of the GDP, compared to about 4.6% in 2017, and is expected to reach about 5.1% next year and 4.4% in 2020. The data also stated that it is likely that the budget deficit will decrease next year to 0.8% of the GDP compared to 1.4% this year, and will decrease to 0.5% in 2020.
The report clarified that it's expected that the growth rate in MENA will increase by an average of 2% in 2018, exceeding its average of 1.4% in 2017, attributing the slight increase of growth in general to the recent rise of oil prices which benefited the exporters of oil in the region, but created pressures on the budgets of oil importers. The report stated in its economic predictions that the regional growth will continue improving moderately to reach 2.8%
by the end of 2020, expecting that the oil exporters in the region will benefit from the prices of oil and the demand that will remain on the rise.
According to the report, it's expected that the growth of oil exporting countries will reach 2.2%
during the period of predictions of 2019-2020, i.e. more than twice the rate of 2017, and it's anticipated that the prospects of growth will increase in Gulf Cooperation Council's oil exporting countries in 2019-2020.
High growth
The report indicated that the high growth achieved in the Gulf Cooperation Council countries is the main driver to improve the expectations of oil exporters, since the Saudi economy which witnessed a recession in 2017 will grow by more than 2% in 2020. In the UAE, the growth rate will exceed 3% by the end of this decade, compared to 2% in 2017. It also stated that the planned suspension of production cut agreement "OPEC+" after 2018, the increase of oil prices, the improved crude production capacity, the recently initiated policies and reforms aimed at achieving stability, including the value added tax by 5% and the other tax amendments and fuel support cut are all likely to contribute positively to the economic recovery of the GCC.
Projections indicate a modest improvement of the economic growth in the Middle East and North Africa between 2019-2020, as it will reach an average of 2.3% by the end of the decade in 2019 and 2.8% in 2020, while the upward trend of growth will lead to a great improvement of the economic activity of oil exporting and importing countries all alike.
The growth projections reflect to a great extent the decline of the pace of fiscal consolidation, the increase of reconstruction expenditure in the countries affected by conflicts, especially Iraq, the expiry of oil production cut agreement which was committed to by a number of crude oil exporters for two years, the economic reforms and the moderate recovery of external demand.
UAE economy managed to adapt to a great extent to the impacts of the fall of oil prices since 2014
The deliberate
government policies
enabled the national
economy to face the
challenges
Several international reports stated that the recent stimulus procedures adopted by the UAE and the momentum that accompanies the preparations for Expo 2020 Dubai are creating the pillars of a sustainable economic future in a country that became known for its rapid growth.
The UAE economy has proved its ability to overcome the economic changes and the non-petroleum sector has been able to achieve a relatively high growth rate of 2.5 and 3 percent. According to a report by Oxford Economics, in view of recent data, it is clear that any fear of recession is misplaced, and with current stability of the petroleum sector and its readiness to continue its growth in 2019, we expect an accelerated growth of the GDP by 2% in 2018, then accelerating to 3.1% in the next year.
The report asserted that the growth of the non-petroleum sector, which contributes to about 70% of the national GDP, is considered a basic pillar in strengthening the UAE's economy and protecting it against the threats. The non-petroleum sector has achieved a growth rate of 3.1% in the first quarter of 2018, according to the latest data of the central bank. Moreover, recent monthly indexes that monitor the well-being of the non-petroleum private sector have drawn a similar positive image.
The average of procurement managers index which measures the production and the new orders of the non-petroleum sector has reached
55.7% in January and August during 2018 (remarkably higher than the level of parity 50.0), which indicates the continuation of growth.
The PMI's employment sub-index continued to grow most of this year too, as total credit, a sector health index that monitors bank loans, rose by 3.2% on annual basis in July, which indicates healthy levels of economic activity.
Incentives that improve sustainability
In its monthly report on the UAE, the Economist Intelligence Unit indicated that hosting Expo 2020 by the UAE would provide a new momentum for economic activity during that year, especially in Dubai, in a time where the sectors of manufacturing, trade, transport and tourism will continue their recovery.
The UAE is the Equivalent of
Sustainable Rapid Growth
The report confirmed that the UAE will benefit from its situation as a safe haven in unstable region, especially with Dubai enhancing its position as a regional and international trading center. Moreover, the report expected that the real GDP growth will gain strength between 2020 and 2022 by 4.2% annually.
It is expected that the growth will gain momentum in 2019, and the average real GDP growth will reach 3% annually during 2018-2019.
The Economist Intelligence Unit predicted that high oil export revenues and non-oil export revenues from 2021 would widen the current account surplus to 8.3% of GDP in 2022, thanks to the progress achieved in transport infrastructure projects.
A recent report published by the British website "Mishcon" stated that the UAE has become the equivalent of rapid growth and that the economic incentives are enhancing the sustainable growth.
Dawn newspaper expected that the economy will continue its activity in 2018, owing to the high oil prices and the increased foreign demand.
The increase of expenditure on infrastructure projects during the period prior to Expo 2020 would help stimulating the economic activity in the next year.
The investment incentives go hand in hand with the UAE Vision 2021 strategy that aims to transform the UAE into skills and knowledge- based economy. The program was launched in 2010 and a part of which was dedicated to expand the activity of economy, tourism and trade in the UAE.
One of the world's most prominent economies
The World Economic Forum (Davos) has ranked the UAE among the world's most prominent 30 economies, owing to the constant economic improvements launched by the government, indicating in this regard to both of the Value Added Tax (VAT) act, which was applied in the beginning of this year, and the bankruptcy law which was enacted last year.
This came in the Global Competitiveness Report 2018, published recently by the forum. It is a new report that focuses on the fourth industrial revolution, innovation and the concepts of the new knowledge economy. The figures revealed by
the forum in the report showed that the UAE was ranked 1st in the Arab world and the 27th globally in terms of global competitiveness. In addition, the UAE has achieved advanced ranks by filling the first place globally in four sub-indexes.
The World Economic Forum (Davos) asserted that the economic improvements launched by the government of the UAE has placed the state among the world's most prominent economies, referring in this context to both of VAT act, applied in the beginning of this year, and bankruptcy law which was enacted last year. These steps put the UAE's economy on the list of the best economies in the Arab region and among the best 30 economies in the world.
This came in the Global Competitiveness Report 2018, published by the forum. It is a new report that focuses on the fourth industrial revolution, innovation and the concepts of the new knowledge economy. The figures revealed by the forum in the report showed that the UAE was ranked 1st in the Arab world and the 27th globally in terms of global competitiveness.
International indexes
and reports drawing a
positive image for the
UAE's growth
Main areas
The new report studied the economy of 140 countries, classified according to their performance on 98 indexes listed within 12 main areas:
institutions, infrastructure, adopting information and communication technology, macroeconomic stability, health, education, skills, commodity market efficiency, labor market efficiency, financial system, market size and business dynamics.
70% of the assessment report's weight is based on the data and statistics of the countries listed in the report and the remaining 30% comes from the results of surveys and questionnaires of executives and senior investors in those countries.
Remarkable performance
The UAE was ranked in advanced positions in this year report. This is highlighted by filling the first place globally in four sub-indexes; lack of change in annual inflation rate, debt dynamics, mobile's internet
subscriptions and electricity contribution rate of population ratio.
Moreover, the UAE was ranked second globally in the mobile phone subscriptions per 100 inhabitants' index and the third in both of the low burden of government procedures index and the effect of taxes and subsidies on commercial competition index.
The UAE was ranked seventh in the air transport efficiency index, the employment and separation practices index and the ninth in the non-tariff barriers index and the road quality index and the 10th in the ease of finding skilled employees index.
Advanced positions
The UAE filled top positions among the world's top 20 countries in 42 global indicators, including the 11th place globally in the index of the percentage of Internet users, the development of specialized economic zones index, and the index of critical thinking in teaching.
Moreover, the UAE was ranked 12th globally in the index of the efficiency of the legal framework in the settlement of disputes and the growth rate of innovative companies,
the 13th globally in the fiber optic internet subscriptions index, the sea ports services efficiency index, the 14th globally in the digital skills of population index and behavior towards entrepreneurial risk index, the 15th globally in the clearance process efficiency index, the 16th globally in the index of laws governing the conflict of interest, the 18th globally in the index of internal mobility of workers, and the 19th globally in the finance of small and medium enterprises index.
Competitive race
Abdulla Lootah, Director-General of the Federal Competitiveness and Statistics Authority (FCSA), said:
the Global Competitiveness Report 2018 issued by the World Economic Forum shows the difficulty of the race that we go through every year,
The investment incentives go hand in hand with the UAE Vision 2021 strategy that aims to transform the UAE into skills and knowledge-based economy
4.2% is the annual
growth percentage
of the national GDP
2020-2022
as the competition rules with other countries are changing constantly.
Accordingly, we in the Federal Competitiveness and Statistics Authority and all our partners in the federal and local government should work constantly to keep pace with these changes and develop plans and strategies to maintain the leadership of the UAE in the global competitiveness indicators.
Thankfully, this is what we managed to achieve it this year by the UAE filling 1st position in the Arab world and the 27th position globally.
Performance control
Hanan Mansoor Ahli, the Executive Director of the Competitiveness Sector at the Federal Competitiveness
& Statistics Authority, asserted the importance of controlling the performance and monitoring the effectiveness and efficiency of government services.
She added: in line with the path drawn by His Highness, Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, and His Highness, Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, we work with all our partners to keep pace with changes and launch strategic initiatives aimed at improving the performance.
This can be achieved by adopting innovation to continue our advancement in the index of global competitiveness, realize the vision of the wise leadership and achieve the sustainability of advancement and development in all sectors related to the competitiveness indicators.
She also said that the UAE government has paid a great attention to consolidating the pillars of economy through constant improvements that can raise the economy to the level of advanced
global economies, thanks to the state's policy in terms structural economic reforms witnessed by the UAE, and the legislations and decisions that covered most of the economic, administrative and institutional aspects that help accelerating the growth of economic activities in the UAE.
Enhancing the strategy of economic diversification and providing an attractive investment environment.
She also commended the efforts exerted by the workgroups of the federal and local governments and
private sector and their active role in the world arena through the various economic, social and technological sectors.
Enhancing competitiveness
Professor Klaus Schwab, the founder and executive chairman of the World Economic Forum, said that adopting the foundations of the fourth industrial revolution has become a key factor in determining the competitiveness. In this report, the World Economic Forum follows an approach that evaluates the quality of the countries' performance based on the new approach. It is expected that we will witness a new global gap between the countries that recognize the importance of innovative transformations and the countries that neither recognize nor implement them. The economies that realize the importance of the fourth industrial revolution are going to be the only ones able to open the door of opportunities for their people.
In the time where the trade tensions and negative reaction regarding globalization are on the rise, the report found evidence that highlight the importance of openness for competitiveness; for example, the economies with good performances in the indexes that indicate openness, such as the reduction of tariff and non-tariff barriers.
It is expected that the new global competitiveness report issued by the World Economic Forum (Davos) in Switzerland is one of the most important international reports, since it aims to help the countries around the world to detect the obstacles facing their sustainable economic growth, develop strategies to reduce poverty and increase prosperity and assess their ability to provide high levels of prosperity and welfare for their people. It is one of the reports that provides a comprehensive assessment of the points of strength of countries' economies and the challenges facing them.
Taking interest
into expanding the
economic, touristic and
business activity
Youth Council for the Future's Economy that was launched in last September under the patronage of H.E Engineer Sultan bin Saeed Al Mansoori, Minister of Economy, Chairman of Securities and Commodities Authority, is considered a leading initiative to empower the youth of the UAE economically and commercially and promote their role in the process of comprehensive sustainable development witnessed by the state.
H.E Sultan Al Mansoori indicated that the initiative was launched on the bases of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, and Ruler of the Emirate of Dubai, which aims to "create a development movement led by the youth that anticipates the future and
Al Mansoori: the objective of the council is to empower the youth economically and commercially and involve them in the process of future economic development
achieves the happiness of the society, and in which the youth aspires to be the core of a national economy that focuses on the capacities of the youth of the UAE and adopts innovation as an approach to achieve leadership in the future".
His Excellency commended the role of HE Shamma bin Suhail Faris Al Mazrui, Minister of the State for Youth Affairs, in supporting the initiative, supervising the mechanisms of implementing it and creating the conditions necessary for its success.
Al Mansoori added that the objective of the council is based on
"empowering the youth economically and commercially and involving them in the process of future economic development by providing economic and investment environment that supports their small and medium projects and innovative ideas".
Practical Solutions
In turn, HE Shamma bin Suhail Faris Al Mazrui, Minister of the State for Youth Affairs, Chairperson of the Federal Youth Council, welcomed this initiative and asserted its importance in improving the role of the youth in leading and shaping the future's economy.
HE, Minister of the State for Youth Affairs said: the youth are the hope of shaping the future, making a positive change and enhancing the position of the UAE in all fields both regionally and globally. Every day, the youth of the UAE prove their ability to take responsibility and innovate practical solutions for the challenges in order to shape a better and brighter future which correlates with the ambitious vision of the UAE to be one of the best countries in the world.
She indicated that the youth of the UAE left an evident impact in all sectors and made many achievements in improving the economic growth through their ambitious ideas that created leading projects and their leadership and management of many economic institutions which became, thanks to their efforts, one of the most prominent institutions in the region and the world.
"Youth Council for the Future's Economy",
a leading initiative to empower the youth of the UAE
Aimed at formulating a strategy that depends on knowledge economy
Promoting the leading role of the youth
On his part, Dr. Obaid Al Zaabi, Chief Executive Officer at Securities and Commodities Authority (SCA), acknowledged the idea of the initiative which was fostered by the authority since the beginning and indicated that "Youth Council for the Future's Economy" was formed under the supervision and sponsorship of the Ministry of Economy in the context of supporting the approach of the UAE aimed at empowering and involving the youth at all levels, especially at the economic one.
He added that the challenges which the council seeks to address include the nature and properties of the future job, the leading role of the youth's talents in them and the challenges related to small
and medium enterprises and their importance for the youth.
9 members
The council consists of the following 9 members who represent the bodies participating therein: Hamda Al Zaroni, Majed Al Naqbi, Sheikha Al Katbi, Ammar Al Maini, Talal bin Masoud, Hamda Al Omni, Abeer AL Karmastaji, Fatima Farham and Hamad Al Awadi.
The work of the council was first initiated by participating in the open interactive dialogue entitled
"opportunities of the future's economy", and which came in the context of the activities of the Emirate Youth Summer Academy organized by Hamdan bin Mohammed Smart University.
The core project of the council, previously discussed and approved by the Board of the Securities and Commodities Authority, presided over by H.E Sultan Al Mansoori, stated that the goals set for the Council represent its constitution and charter, as they adopt an approach that depend on initiative and positivity in dealing with the role of the youth and their hopes, whether in terms of involving the youth in the process of formulating the strategy of the future's economy by depending on knowledge economy, establishing innovative economic projects as a step to abandon the UAE's dependence on oil and empowering the youth economically and commercially through innovative initiatives that contribute to improving their abilities, harnessing their capacities to push the economy of the state forward, in addition to providing
a suitable economic and investment environment that meets the needs of youth projects and contributes to their success, as well as revitalizing the role of the youth in developing commercial community-based projects that serve the community.
Great Responsibility
The Council has a great responsibility to achieve the objectives entrusted to it, which include: consolidating the principle of cooperation between the leaderships of future economy, formulating an economic strategy that anticipates the future, serves the aspirations of the youth and matches their economic and social growth within a timetable that runs until 2050, marketing the economic youth initiatives in all emirates of the state efficiently and positively, in addition to creating communication channels with the most important government and private sector's bodies to contribute to communicating the ideas and opinions of the youth and providing a multitask information platform that helps transferring knowledge and quality economic expertise to the youth.
Shamma Al Mazrui:
the importance of the initiative lies in promoting the role of the youth in leading and shaping the future's economy
The tasks of the council include consolidating the principle of cooperation between the leaderships of future economy and formulate an economic strategy that anticipates the future and serves the aspirations of the youth
Marketing the economic youth initiatives in all emirates of the state efficiently and positively
A multipurpose information platform that helps
transferring knowledge and quality economic expertise to the youth
Artificial intelligence and data sector are expected to have an important economic role equivalent to oil in the future of the UAE economy; as a result of the increasing reliance on artificial intelligence technologies that will be the basis for many vital activities of the future society.
The UAE's focus on promoting investment in this fast-growing global economic sector comes in line with its plans to celebrate the export of the last barrel of oil after 50 years.
The UAE Government continues to work towards achieving its future strategic objectives in terms of making use of the artificial intelligence sector as the main source of a diverse and sustainable knowledge economy by developing innovative practices and scientific uses of artificial intelligence technology tools, and enhancing cooperation among all parties to employ them in the development of government services and private
Making use of the artificial intelligence sector as the main source of diverse and sustainable knowledge economy
sector performance, that would contribute to the achievement of the goals of the UAE vision 2021 and the establishment of the future model of the UAE Centennial 2071.
The UAE maintained its top position in the Arab world in terms of the Global Innovation Index of 2018, making progress on the innovation output axis from 56th place last year to 54th this year, driven by progress in the knowledge and technology output sub-index by 18 ranks, and it was ranked 38th in the world's overall ranking in terms of the index.
The State has made progress in a number of sub-axes in the general index structure; the most important of which are knowledge and technology outputs, business development, market development and infrastructure.
The most important sub-indexes, in which the country achieved an improvement compared with the result of 2017 index, include
intellectual property fees, FDI net inflows, total R & D expenditures by business sector, and private sector's share of domestic credit.
The State has adopted an ambitious plan to strengthen its position among the world's best innovative countries and reach a higher rank in terms of Global Innovation Index by 2021 to meet the benefits of the national agenda.
Proactive Approach
The UAE, guided by the future vision of the wise leadership, follows an ambitious, proactive approach that reflects the requirements of the future government and depends on data as a fundamental pillar in
Artificial
Intelligence is the
Basis of the UAE
Economy's Future
the decision-making process and determination of trends. This comes in the context of its efforts to achieve leadership in various sectors and to find solutions to various challenges, especially those that have a direct impact on human life and society.
Data is the mainstay of knowledge, and knowledge is the key force for positive change. Therefore, the optimal use of data and scientific research will play a key role in the development of a sophisticated business system that employs advanced sciences and the latest technology means to improve key services and provide a better life and a brighter future for all members of society.
Scientific Research
The specialists emphasize the importance of strengthening the culture of scientific research and guiding young people and enabling
them to keep pace with the advanced sciences to establish a generation of the UAE's scientists and achieve more gains and successes that reflect the distinctive image of the UAE's youth.
The importance and role of data lies in being the basis that helps members of communities by providing high-quality services that make them happy.
Making use of data by using modern technology to serve the community is one of the bases for the adoption of artificial intelligence. Thus, society is an important partner in supporting government authorities by providing data that contribute to improving the nature of government work.
Partnership with the private sector is one of the key bases to build a comprehensive data system that contributes to predicting the best methods to address challenges, find solutions and make use of artificial intelligence potentials.
Capabilities
Experts emphasize that the emergence of artificial intelligence
technology represented in the use of the machine to simulate human intelligence and abilities, and with the data revolution, it has begun to develop in many other areas, including analysis, learning and reading. The emergence of this technology will play an important role in the emergence of new jobs in the labor market. Two-thirds of jobs in the future are expected to be new, while automation, computing and robotics will be responsible to perform about 80% of human tasks. For example, many uses of this technology have emerged in banking, self-propelled vehicles and unmanned aerial vehicles.
