Today's Edition
MUSTAFA ABDUL AZIM (DUBAI)
Startups in the UAE enjoy some of the fastest growth rates world wide, as hailed by members of the business community and investors. The country’s favourable government-developed investment environment encourages rapid growth, as demonstrated by the innovators and entrepreneurs from across the globe who flock to the UAE.
The country has also earned itself a reputation as a cross-sector startup incubator, particularly given the investment environment’s focus on newer sectors based on knowledge, innovation, advanced technology, and green industry. Experts anticipate that the UAE’s business environment will continue to witness strong momentum into 2024, supported by economic prosperity, particularly in non-oil sectors.
The global competitiveness of the UAE’s economy, ranking among the top ten in various economic competitiveness indicators worldwide, further contributes to this positive outlook. Shakeel Ahmed Meer, the Chairman of Meer Group, which boasts a diverse investment portfolio across 14 sectors, expressed his optimism about the country’s next three years of business growth.
Meer stressed that all indicators and reports classify the UAE as one of the best investment destinations in the world, providing investors and entrepreneurs with opportunities for global reach, growth, and access. According to Meer, the UAE possesses numerous investment advantages, like security, stability, and the leadership’s commitment to continuous development, making it a preferred destination for both investment and living.
The country’s favourable business environment, including supportive legislation, along with world-class infrastructure in its technology, communications, aviation, and ports sectors contribute to its attractiveness, he added. Sudhir Kumar, Partner and Chief Corporate Communicator at Kreston Menon Group, said that the UAE enjoys an exceptional investment environment in the region, enhancing its continuous attractiveness for foreign direct investment.
Kumar noted that he expects the UAE to continue achieving record levels in foreign direct investment inflows this year, citing notable new investments from various markets, including India, Europe, the US, UK, along with Canada, from which there have been a significant increase in investments in recent months.
Kumar attributed the UAE’s investment attractiveness to factors such as a business-friendly environment, new laws allowing full ownership for foreign investors, various free zones, ease of doing business, and other factors like visa facilitations, the availability of long-term residency, and a diverse talent pool in various sectors, particularly new economy sectors.
Garbis Iradian, Chief Economist for the Middle East, North Africa, and Central Asia at the Institute of International Finance, said that he expects the UAE to maintain its leadership among the world’s preferred investment destinations.
He highlighted the UAE’s appeal as one of the most attractive foreign investment destinations globally, with the largest recipient of foreign direct investment in the region, attracting $24 billion in 2023, constituting around 4.7% of the total GDP. Iraadian attributed the high inflow of foreign direct investment to the UAE to its diverse and open economy, attractive business environment, infrastructure, flexible and adaptable policies, and dynamic private sector.
He commended the country’s expanding investments in sustainable development, reflected in the growth of renewable energy projects, green finance, and non-oil economy sectors. In 2023, Abu Dhabi witnessed a remarkable compound annual growth rate of 14%, equivalent to 67,085 companies.
Over the last year, 25,016 new companies came to Abu Dhabi, compared to 22,810 companies in 2022 and 19,259 companies in 2021. Wholesale and retail trade dominated these startups, representing approximately 39%, followed by the construction sector at 16%, and support and administration services at 8%, according to data from the Abu Dhabi Chamber.
