Education is a universal right, and rightly so. With the UAE’s resolve to provide a first-rate education system, and revolutionize education, in every possible approach, including how it is made available, its quality and efficiency and the very meaning of education itself.
Complementing the UAE Education Strategy, the soon to be launched UAE’s blueprint to advance artificial intelligence (AI) in the field of education, will create opportunities with magnitude and proportions not yet known to man.
In parallel, various UAE entities are also paving the way to a transformative education, including by introducing research and technology centers. To name a few, the American University of Sharjah (AUS) Research, Technology and Innovation Park champions Sharjah’s efforts to foster innovation, encourage entrepreneurship and develop a sustainable knowledge economy. An economic free zone by AUS Enterprises dedicated to research and development, the Park supports local and global companies, including private-public sector ventures.
The UAE is set to conquer new frontiers, including fully utilizing the power of artificial intelligence (AI). In the nation’s journey to the future, it will deploy AI technology, while also affording the UAE to be the first in the field of AI investments in various sectors – all of which will not only attract the most brilliant minds and innovative business: they will also reshape the market as we know it, and invent investment channels:
UAE AI:
The Centennial Vision 2057 of Abu Dhabi Police includes more than 50 strategic initiatives harnessed by artificial intelligence (AI) and proactive thinking in future security work. Along with the rest of the Emirates' plans to leverage on the power of AI, these initiatives would pump government investments, as well as force the market to reinvent itself and create the unimaginable.
The Space Industry has an estimated global market value of USD 300 billion (AED 1.1 trillion), and an 8% per annum projected growth. Carving a new market, the space sector is also setting groundbreaking demand and indeed, investment opportunities. Also according to the Emirates Mars Mission, the UAE's space-related investment had already reached more than USD 5.4 billion (AED 20 billion). These ambitious projects include:
- UAE to be a part of the world consortium in establishing the first settlement on Mars and establishing the first colony in Mars by 2117.
- Build Mars Scientific City.
- Develop the Mohammad Bin Rashid Space Centre to lead the Mars 2117 project
Amplified by the determination of the UAE to strengthen its reputation as a leading industrial hub, as manifested by a record-high of 6,301 industrial establishments across the seven Emirates of the UAE and an overall investment volume of USD 35.0 billion (AED 130.2 billion) as of 2016, the sectors of industrial, manufacturing and basic industries are not only poised for further growth in the coming years, - indeed, these sectors are primed for success, generating rewarding investment opportunities.
The nation’s industrial sector accounts for 16% of the UAE’s GDP; in some Emirates such as Ras Al Khaimah, this figure is much higher at 33% of its GDP in 2015.
Contributing 8.5% to the UAE GDP in 2016, the manufacturing industries subsector is expected to yield a healthy growth rate, to about 15% of the UAE GDP by 2021. Owing to the projection - and intent - of the UAE to raise the GDP contribution of the industrial sector to 20% by 2020, and up to a quarter of the nation’s GDP by 2025, a significant portion of government resources, and a series of initiatives and strategies are masterfully crafted to yield results, directly or indirectly, toward a stronger industrial and manufacturing sector in the UAE, across its seven Emirates.
The foremost and definitely the most explicit articulation of this endeavor is the Dubai Industrial Strategy 2030, positioning the city as an “international hub for industrial activities, the preferred manufacturing platform for global businesses, and last but not least, a center for the global Islamic products market”.
Recognizing the breadth of activities under the industrial sector, several investment opportunities are better described in what could be considered the sub-sectors of the sector. For example, demand for manufacturing of aerospace sub-industries, maritime vessels and sub-industries and pharmaceutical products are listed under the aerospace, maritime and health sectors in the succeeding pages, respectively.
Meanwhile, specific opportunities include:
- Fast moving consumable goods(FMCG)
- Halal Industry
- Aluminum and Fabricated Metals Manufacturing
- Machinery and Equipment
The tourism sector is a key driver of the UAE economy. With the strategic geographical location of the country and its world-renowned infrastructure, travel and tourism is a natural focus of the immediate and long-term development plans of the UAE. It is also a benchmark put in place by the UAE Government to strengthen UAE Soft Power, reinforcing the position of the UAE as a gateway to the region, and a capital for culture, art and tourism.
Making its prominent mark in the global tourism landscape, and providing the best choices for world-class business and leisure facilities as well as bringing high-profile events such as the annual World Government Summit, World Expo 2020,among others, the total contribution of the travel and tourism sector to UAE GDP is impressive: an effective catalyst of growth, this is projected to rise to 10.6% of UAE GDP by 2028, overtaking many sectors, in terms of growth.
Dubai has long been recognized as one of the world's top tourist destinations, and certainly among the most sought-after destinations for business travellers, for meetings, incentives, conferencing and exhibitions. By 2020, the Emirate is projecting a 25% increase, to 20 million visitors per year. The rest of the Emirates are on the same growth route: the capital, Abu Dhabi, and nearby Emirates such as Sharjah, Ajman, Fujairah, Umm Al Quwain and Ras Al Khaimah have also invigorated their tourism sector, launching various strategies, completing infrastructure upgrades and injecting government spending in the sector to spur further investments and attract visitors. Indeed, the tourism sector is the designated main catalyst in every Emirate's development goals.
Visitor exports are a key component of the direct contribution of travel and tourism. According to the World Travel and Tourism Council, the UAE generated USD 33.6 billion (AED 123.5 billion) in visitor exports in 2017. In 2018, this is expected to grow by 5.3%. By 2028, international tourist arrivals are forecast to reach more than 33.5 million, generating expenditure of USD 55.1 billion (AED 202.6 billion), an increase of 4.5% per annum.
The Travel and Tourism Sector and its annual growth and positive contribution to the UAE economy is a clear testament of the auspicious future of this sector, projecting a healthy growth and an upward trajectory, making the sector a top contender for investors seeking to start or expand their businesses in the UAE. This sector is also known to stimulate growth in other businesses, from retail and service industries, to manufacturing, entertainment, telecommunications, and even agriculture.In addition to jobs creation and revenues generated to boost GDP growth, the UN World Tourism Organization notes its importance too in peace and security, as well as, among others, cultural preservation.
The contribution of the aviation sector to the UAE economy is of notable importance. In 2016, this stood at USD 46 billion (AED 169 billion), or around 15% of UAE GDP. By 2020, it is expected to yield around USD 53 billion (AED 195 billion), and increase to about USD 88.1 billion (AED 323.6 billion) by 2030.
With seven international airports, catering to more than 100 million passenger traffic annually, the investment opportunities in this sector is set to soar even higher, as the country capitalizes on its strategic location, and prepares to welcome more visitors and businesses annually.
Ranked as the world’s number one international airport with annual traffic of 83.6 million passengers in 2016, the Dubai International Airport serves 90 airlines flying to more than 240 destinations across six continents. The Airports Council International already ranked the city’s second airport - Dubai World Central - as the 19th busiest hub for international freight traffic, after barely four years of operations.
Once its expansion projects are completed in 2018, it is also set to create new records for the country, as DWC becomes the world’s largest airport, with a capacity of 160 million passengers, and 12 million tonnes of cargo per year. With the capability of efficiently facilitating sea to air cargo and vice versa, Dubai has emerged as a major air cargo hub for the region .
Impressive annual surge in passenger and air cargo demand is accelerating wide-ranging investment opportunities from airport-related services to repair and maintenance and manufacturing of aircraft.
Ranked as the Best Airport in the Middle East (in its category) by the Airports Council International, the Abu Dhabi International Airport is also one to keep an eye on, with 24.5 million-passenger traffic in 2016.24 e third largest airport in the UAE, Sharjah International Airport is also witnessing impressive traffic growth, with 5.5 million passengers during the first half of 2017, and 73,000 tonnes of airfreight
cargoes handled during the same period.25 Estimates indicate passenger demand will increase to 9.4 million by 2020.
In addition to investment opportunities generated by the international airports, DAFZA – Dubai Airport Free Zone Authority – currently hosts some of the biggest and most prominent aviation companies, including Airbus, Boeing, General Electric, Rolls- Royce, and Bombardier, among others. Similar other free zones in the country also provide a steady boost in the aviation sector of the UAE.
Efficient logistics performance, unarguably the backbone of domestic, regional and international trade, also determines the competitiveness and economic vitality of a country. With a distinct strategic advantage of its geographical position, where billions of people are within reach within just a few hours from any of the dozens of ports in the UAE – 5 billion people within an 8-hour flight from the UAE – vying for the top spot to become the world’s leading logistics hub is a natural tendency for the UAE.
In addition to the international airports in the country, the UAE is also home to some of the best natural deep-water ports in the world, such as the Fujairah Port. The Port is also second largest bunkering port in the world, and is growing at an impressive rate.
Over the years of honing its logistics performance, the efficiency of its border control and clearance process, quality of trade and transport related infrastructure, competitive pricing and timeliness, and among others, competence and quality of logistics services, the UAE has successfully put its mark on the global
logistics map. The World Bank, through its Logistics Performance Index, named the UAE as the top logistics hub in the Middle East and North Africa (MENA) region, as well as among other high-income countries outside the Organisation for Economic Cooperation and Development (OECD) circle.
Globally, the UAE continues to improve its ranking, holding the 13th position, immediately after leading global economies such as the US, Switzerland and Japan making the 10th, 11th and 12th places, respectively.31 Catalyzed by complex demand generated by increasing population, people’s and businesses’ ever-growing needs and wants compounded by both globalization and a digitalized global market, these sectors are witnessing exponential growth and expansions as investment from both the UAE Government and the private sector pour in.
Contributing more than 6% to UAE GDP in 2016, and projected to increase to 8% by 2021, the nation’s transport and storage sectors is also an area of focus. In the UAE, investment and expansion projects are steadily gaining ground to accommodate the growing demand for e-commerce, supply chain and logistics, including for pharmaceutical and cold storage products.
Home to some of the world’s busiest hub for both international airfreight traffic and natural deep water ports, and matched by a strong global confidence
marine, transport and logistics space from across the globe regard the UAE as an important element of their competitiveness and sustainable success.
The optimistic projection in the UAE for the next five years is also prompting new investment opportunities:
• 4.8% compounded annual growth in UAE airfreight market over the next 5 years
• Container port traffic in the UAE expected to reach record level of 28.4 million twenty-foot equivalent units by 2021.
In the transport sector, the UAE Government has laid out ambitious plans for its infrastructure and transport systems, with bold targets backed by generous government spending. The Abu Dhabi Surface Transport Master Plan (STMP), the Dubai Autonomous Transportation Strategy 2030, as well as the Emirate-level strategies and visions of Sharjah, Ajman, Fujairah, Umm Al Quwain and Ras Al Khaimah – and the UAE’s goal as a key trade, industrial and logistics hubs – are all redefining the space and steering investment opportunities for these sectors.
Already contributing 7% to the GDP of the UAE in 2016, the real estate sector is still growing. Fuelled by the population growth across all seven Emirates, the expanding business ecosystem and vibrant economic sectors of activities in the UAE, the real estate and construction sectors are yet to cope up with current demand.
The pipeline of construction works is also filled to its brim, given the Government’s grand plans for the future of the UAE.
The Abu Dhabi Urban Structure Framework Plan 2030 alone identified a long list of projects and investment opportunities - in most cases demanding more than a three-fold increase in current supply by 2030. These include the construction of:
- 686,000 housing units
- 7.5 million m² office spaces
- 4 million m² retail spaces
- 15 million m² industrial spaces
In Dubai, a whole new catalog of projects is also creating investment opportunities. Reports indicate that in order to keep up with the surge in population within the Emirate – from 2.4 million in 2016, to 3.3 million by 2021, to 5.2 million by 2030 – an average of 3,500 housing units should be built per year.
Another new dimension, Dubai is calling for 3D printing in the construction industry. The Dubai 3D Printing Strategy 2030 is bound to restructure construction practices, as it pioneers new targets for developers: to have every new building in Dubai to be 25% 3D printed, by 2025. Sharjah is also ahead of the curve, and is already exploring options to seize the opportunity and take advantage of the benefits of 3D printing in the construction industry.
Fujairah, with its explicit plan to prioritize provision of high-quality residential complexes and improve transport infrastructure by 2040, is also energizing the
construction industry sector in the Emirate. Similar projects are also planned in the Emirate of Umm Al Quwain.
In Ajman, as well as real estate and construction activities planned within the city, its Municipality is conducting studies to prepare the blueprint of the urban planning of Masmout and Al Manama districts, with a milestone set to 2030. Accordingly, a boom in the real estate and construction sector in Ajman is taking place, and will continue to be invigorated in the coming years.
Delivering a remarkable increase of 45.5% in 2016 over the previous year, the construction and real estate sectors of the Emirate of Ras Al Khaimah, providing 17.4% of the Ras Al Khaimah’s GDP in 2016, are said to continue generating projects in the construction industry pipeline.
Accounting for more than 12% of the GDP of the UAE, the retail and wholesale trade sectors are vital to the UAE’s economic diversification strategy.38 As such, and directly feeding into the UAE’s economic vision, and the national goal to be a leading global industrial and logistics hubs, the UAE Government is revitalizing a broad spectrum of improvement and expansion projects for its wholesale and retail trade sectors - another oasis for investors.
The UAE is working towards strengthening its share in the global wholesale trade sector valued at USD 4.3 trillion, and expected to grow to USD 4.9 trillion over the next 5 years.
Expectedly, the UAE has set its course to connect traders and buyers from all corners of the world, primarily through the Dubai Wholesale City. Spanning over 55 million square feet, it is the largest wholesalehub worldwide, and a strategic base for the top 15,000 traders in the world.
The Dubai Wholesale City provides the best infrastructure and platform, as well as comprehensive support services to global traders eager to take part in this industry valued to grow to USD 4.9 trillion (AED 18 trillion) over the next five years.
Dubbed as the shopping capital of the Middle East, the UAE is leveraging on its reputation as a leading tourist destination as it rallies private sector participation in strengthening its retail sector. With the year-round
arrival of millions of tourists, the tourism sector of the UAE is estimated to grow to USD 72 billion (AED 264.5 billion) by 2027.
The UAE’s own domestic setting is also creating significant demand and invigorating the retail sector: surge in population, stronger national economy affording its residents a comfortable level of disposable income, as well as the seemingly voracious consumer spending culture in the UAE and the GCC countries in general: the UAE had the highest consumer spend per household in the Gulf region in 2016, with the average household spend exceeding USD100,000 (AED 363,700) in 2016.
Some of the statistics and projections that are giving rise to project expansion and investment opportunities in the wholesale and retail sectors include:
The financial and insurance services sectors continue to enrich the UAE’s economy, contributing 10% to the UAE GDP in 2016. Equipped with the right blends of infrastructure systems expertly honed by the UAE, and the seemingly primed ecosystem, the UAE’s financial and insurance services sectors are in every international investor’s radar.
As described by the International Monetary Fund (IMF), the UAE banking system, including the 59 banks operating in the country, is well developed and strong. Playing a key role in funding the growth of the UAE economy, the UAE banking system has total assets amounting to USD 707.9 billion (AED 2.6 trillion) or 204% of UAE GDP at end-March 2017.46 Given the diverse expatriate community in the UAE, the financial services sector is also served by a flourishing network of Foreign Exchange Remittance companies in the UAE.
The UAE is home to two of the world's leading financial centers: the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM).
Dubbed as the gateway to growth, DIFC is a global financial center that provides a stable and secure platform for businesses and financial institutions to tap into the emerging markets of the Middle East, Africa and South Asia. DIFC is a world-renowned financial hub that promotes growth and development of financial services within the UAE by providing world-class infrastructure and business opportunities.
Encouraging a culture of innovation and competitiveness, the ADGM is a key pillar of the capital city's Economic Vision. ADGM’s three independent authorities – the Registration Authority, the Financial Services Regulatory Authority (FSRA) and ADGM Courts – ensure that its businessfriendly environment operates in line with international best practices that are recognized by major financial centers across the world – all in an effort to attract leading businesses across the globe.
The UAE is fully invested in the future. And with this endeavour, the country is also revolutionizing several sectors of economic activities – building on astute appreciation of the future, meticulous planning and solid expertise, including through a network of ingenious Professional, Scientific and Technical Sectors.
These sectors, pitching in more than 3% to the GDP of the UAE in 2016, and attracting 3% of the total foreign direct investments (FDIs) into the country in 2015, the Professional, Scientific and Technical Sectors will continue to feature prominently in the UAE’s longterm development blueprint.
In Dubai, for example, the Dubai Science Park (DSP) is the region’s first Free Zone community that serves the entire value chain of the science sector, dedicated to supporting scientific entrepreneurs, SMEs and multinational enterprises .
The Smart Dubai initiative consolidates innovative programs pioneered and championed by the Dubai Government to ensure the city’s global competitiveness, and to make Dubai the happiest city on earth. The initiative brings together a whole new spectrum of collaboration across various members of the community, from the public and private sectors to introduce strategic initiatives that contribute to Dubai’s Smart Economy, Smart Living, Smart Governance, Smart Environment, Smart People and Smart Mobility dimensions.
The Professional, Scientific, and Technical Services sectors comprise of establishments that specialize in performing professional, scientific, and technical activities for others.
These activities require a high degree of expertise and training. The establishments in this sector specialize according to expertise and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include:
legal advice and representation; accounting, bookkeeping, and payroll services; architectural, engineering, and specialized design services; computer services; consulting services; research services; advertising services; photographic services; translation and interpretation services; veterinary services; and other professional, scientific, and technical services.
Creating a strong, renewable and clean energy sector is a strategic component of the UAE Economic Diversification Strategy, yielding a sustainable economic growth, and one that is not primarily contingent on the revenues generated from hydrocarbons. It is also a prominent feature UAE Innovation Strategy.
Complementing the renewable ad clean energy sector strategies of the seven Emirates, Masdar City and the Mohammed bin Rashid Al Maktoum Solar Park are certainly leading the UAE's renewable and clean energy sector.
All seven Emirates are also serious in their endeavor to ensure water security for the UAE. In Umm Al Quwain, for example, as well as projects towards building new water desalination plants, the Emirate is also eyeing for developing reverse osmosis plants.
The UAE Water Security Strategy 2036 provides impetus to investment plans and opportunities to:
Develop a storage capacity
Use advanced technologies
Establishment of 6 connecting networks
Providing a world-class healthcare is a national priority for the UAE, and is explicitly embedded as one of the main elements of the UAE Vision 2021, and the UAE Centennial Vision. As such, strategies and policies are in place to transform these grand plans into reality,validated by generous government spending – one of the highest in the GCC.
Some of the strategic enablers of a steady growth of the health sector in the UAE include:
- UAE Vision 2021: Provide a world-class healthcare
- Dubai Health Strategy 2021
- Dubai Healthcare City, Dubai Science Park
- Sharjah Health Strategy and Sharjah Healthcare City
- UAE Medical Tourism Focus
- UAE Medical 3D Printing Niche
- UAE Robotic Healthcare Focus