United Arab Emirates
Amongst the most open economies in the world, the United Arab Emirates is ranked high and highest among the Middle Eastern nations. UAE has the most open economies in the world and is ranked 18th according to its economic freedom score. UAE is a composition of seven emirates with each working towards the national economy. The Arab nations bring forward a picture of oil trade, but UAE has worked actively to move away from its reliance on a hydrocarbon-based economy. As an example, the Abu Dhabi emirates contribute greatly in terms of oil trade revenue while Dubai Emirate is an attraction for financial enterprises contributing to the form of business generated revenues.
The other sectors that have and are still undergoing heavy development are export commerce, tourism, aviation, renewable energy and telecommunication. Due to the Covid-19 outbreak, the economy of UAE has taken a heavy blow with major decline rates in tourism, trade (especially oil) and real estate, it is three major revenue generators. The economy in the first half of 2020 declined by 10.8%. According to economic times, to compensate for job losses and enterprise problems, UAE has declared a relief of 6.8 billion dirhams. As the vaccine got a green light by the end of 2020, things are looking up. The economic recovery is expected to be 2.5% in 2021 with the bounce-back of real estate and the steadily increasing integration of ICT.
The ICT sector has always been heavily in demand in the Emirates market. The government has also been active in staying ahead of the trend and trying to explore the integration of digital transactions within the government, public and public to government transactions. There have already been great undertakings in the field of software programming, product and manufacturing. The UAE ICT market is full of foreign shares with re-export being the frontline representer of the ICT sector.
There is a great demand for product goods in the sector and the market has immense potential waiting to be explored. According to the International Trade Administration’s report, the consumer demand in 2016 was about $4 billion and expected to reach $6.8 billion in 2020 before the pandemic. In the current environment, cloud computing has emerged as the leading sub-sector with ICT, closely followed by 5G and cybersecurity. The remaining services are in the virtually capable hands of Oxtrys.
The geo-positioning of UAE gives it an upper edge in terms of business, telecommunication and trading and the nation has been forward in taking advantage of these sectors to propel its growth and diversify its economy.