The UAE’s efforts to diversify its economy through comprehensive economic partnership agreements, 100% ownership laws and free zones have resulted in attracting foreign investment.
By: Priyanshi Mishra
The United Arab Emirates (UAE) has been making significant strides in bolstering its economic partnerships with countries around the world. According to Abdulla bin Touq, the UAE’s Minister of Economy, the country is currently working on 26 comprehensive economic partnership agreements (CEPAs) with various countries.
Bin Touq announced during the Investopedia conference, which took place recently in the UAE. The conference was attended by leading economists, investors, and business leaders from around the world. During his keynote speech, Bin Touq highlighted the UAE’s efforts to build stronger economic ties with countries around the world.
Bin Touq also highlighted the UAE’s recent decision to allow 100% ownership of mainland companies, which has resulted in the addition of 300,000 new businesses in the country. The move is part of the UAE’s ongoing efforts to attract more foreign investment and diversify its economy away from oil.
The UAE’s efforts to expand its economic partnerships and attract more foreign investment have been paying off in recent years. The country has been consistently ranked as one of the top destinations for foreign investment in the region, and its economy has been growing at a steady pace despite the challenges posed by the COVID-19 pandemic.
In addition to the comprehensive economic partnership agreements, the UAE has also been working on developing free zones that provide various incentives to attract foreign investment. These free zones offer 100% foreign ownership, zero corporate and income tax, and streamlined procedures for setting up and operating businesses. They have been successful in attracting a diverse range of companies, from technology startups to global corporations.
The UAE’s focus on diversifying its economy has also led to the development of various sectors such as renewable energy, healthcare, and tourism. The country has made significant investments in these sectors, resulting in the establishment of world-class facilities and infrastructure. This has led to the creation of new job opportunities and contributed to the country’s economic growth.
The UAE’s proactive approach towards building economic partnerships and creating a business-friendly environment has earned the country a reputation as a regional economic powerhouse. The country has set ambitious goals for its economic development, and it continues to work towards achieving them by attracting foreign investment, fostering innovation, and developing world-class infrastructure.
With the ongoing efforts to strengthen economic partnerships with countries around the world, the UAE is well-positioned to continue its growth trajectory in the years to come. The country’s commitment to creating a business-friendly environment, coupled with its strategic location and strong infrastructure, makes it an attractive destination for businesses looking to expand their operations in the region.
The historical India-UAE CEPA is the first bilateral trade accord concluded by the UAE and India’s first bilateral trade agreement in the MENA region. India-UAE CEPA is a wide-ranging agreement, covering all aspects of India’s economic engagement with the UAE including Trade, Investments, Healthcare, Digital Trade Government Procurement, IPR etc.
CEPA has unleashed new opportunities in bilateral trade and it is expected to increase the bilateral trade in goods to $100 billion within five years and trade in services to $15 billion.
The impressive overall growth in bilateral trade is a true reflection of the early gains accruing from the agreement. During the first eight months from April-November 2022 of the current financial year, the bilateral trade between the two countries has grown to $57.8 billion from $45.3 billion same period last year, recording an impressive growth of 27.5 per cent in percentage terms and a notable increase of $12.5 billion in value terms.
The UAE’s efforts to build stronger economic partnerships with countries around the world and attract more foreign investment have been key drivers of the country’s economic growth in recent years. The decision to allow 100% ownership of mainland companies has been a game-changer for the country, resulting in the addition of 300,000 new businesses. With 26 comprehensive economic partnership agreements in the works, the UAE is poised to continue its growth trajectory and cement its position as a leading destination for foreign investment in the region.