WHAT A YEAR UAE
Each of the seven Emirates, in the country's quest to diversify its economy away from oil and gas, have sought to bring something unique to the table—and there are signs it is working.
The UAE's economy is set to grow by between 3.5 and 4% in 2017, according to UAE Ministry of Economy estimates. This would follow 3.7% growth in 2016.
UAE Central Bank data anticipates that non-oil growth will out pace oil-sector growth by 2.1 percentage points over the year, which is good news for a country that hopes to increase the contribution of the non-oil sector of the economy from 70% today to 80% within the next 15 years. The authorities also celebrated recently as The World Bank moved the UAE up eight notches to 26th in its latest Doing Business report. This puts the country ahead of every other Arab nation. On top of that, the UAE proudly ranked 19th in the Global Entrepreneurship Index Report 2016, topping all other MENA countries.
The Emirate of Abu Dhabi serves as the capital of the UAE and represents 87% of the territory of the country. The western region of Abu Dhabi, known as Al Gharbia, represents 83% of the Emirate and is from where the capital draws much of its wealth—approximately 90% of Abu Dhabi's oil wealth is located in this area. In the wake of falling global oil prices, the government in Abu Dhabi worked to rein in spending and introduce a VAT to diversify revenues. With this, Standard & Poor's is predicting a budget surplus of 4.5% between 2018 and 2020 and rating sovereign debt at AA/A-1 with a stable outlook, noting that the Emirate has a robust fiscal position, large currency reserves, and an estimated GDP per capita of USD75,000 in 2017.
Down the road in Dubai, the engines of growth are starkly contrasting. Lacking the oil of its larger neighbor, Dubai relies more heavily on the non-oil sector, its real estate and construction market often propping up non-oil growth nationwide—indeed, the non-oil sector is touted to represent 80% of GDP within 15 years. Dubai's economy grew 2.7% in 2016 and is expected to grow 3.1% in 2017. The country's sophisticated network of ports—Jebel Ali Port and Port Rashid being the most significant—and wide variety of free zones—Jebel Ali Free Zone, Dubai Healthcare City, and Dubai Media City to name just a few—have ensured it is the UAE's top destination for foreign investment. In 2016, FDI amounted to AED25.5 billion, maintaining Dubai's ranking in seventh place among the top-10 global recipients. Dubai is also set to host Expo 2020, a boon not just for the Emirate but the entire UAE. Spending on infrastructure for the event alone could reach AED25 billion, while some predict the slow-burn economic benefit could be a AED140 billion contribution to GDP.
The Northern Emirates are no less significant in their contribution to the UAE's mission. Sharjah, the third-largest Emirate, represents one-third of the UAE's manufacturing sector and is the self-styled cultural capital of the UAE, chosen as the Islamic Culture Capital of the Arab Region for 2014. The Emirate hopes to attract over 10 million tourists by 2021, the year of the culmination of the UAE's own Vision 2021, a broad-ranging blueprint for sustainable growth. Ras Al Khaimah has also developed a solid industrial matrix and is home to RAK Ceramics, one of the world's largest ceramics producers. The company boasts a global workforce of around 15,000, 8,500 of whom live in Ras Al Khaimah. Ajman boasts of having retained a unique Emirati touch and has grand ambitions of its own. Growth in the Emirate is driven by the Ajman Free Zone (AFZ), while the most significant project at present is the construction of Ajman International Airport. As the UAE's eighth international airport, the project is expected to add much-needed capacity to the Northern Emirates.
The Emirate of Fujairah stands out as the only Emirate that has a coastline on the Gulf of Oman. The Port of Fujairah has come to prominence, located on a key global energy trade route. In late 2016, the port authorities launched the UAE's first very large crude carrier (VLCC) jetty on the Indian Ocean, a AED650-million investment that the Emirate hopes will boost its influence as an oil-trading hub. Umm Al Quwain has a tiny population of 50,000. It is, however, a key cog in the UAE's food chain, as the site of the UAE's first poultry farm and a crucial supplier of poultry and dairy products to the local market. The main growth engines, however, are the Ahmed Bin Rashid Port, within which is Ahmed Bin Rashid Free Zone and Umm Al Quwain Free Trade Zone (UAQ FTZ). The largest current development is the transformation of Sinniyah Island, close to the city of Umm Al Quwain, into a tourist haven, with Sobha Group currently working on a AED25-billion development of hotels, villas, and more. A testament to what cooperation can achieve, the UAE, while built on oil, is carving a future for itself beyond the black stuff. With the country maintaining high hopes for the future, investors ought keep a close eye on developments across the Emirates if they are to understand what really makes the UAE tick.
WHAT A YEAR UAE
TABLE OF CONTENTS
Inside Perspective
Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister, UAE
Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on the Smart Dubai Happiness Agenda, the standout projects over the last year, and the Year of Giving.
read articleProfile
Sheikh Dr. Sultan bin Muhammad Al Qasimi, Member of the Federal Supreme Council and Ruler , Sharjah
Sheikh Dr. Sultan bin Muhammad Al Qasimi, Member of the Federal Supreme Council and Ruler of Sharjah, has been instrumental in the growth and development of Sharjah, with his passion for academia a driving force in the growth of the knowledge economy.
read articleInside Perspective
Sheikh Saud Bin Saqr Al Qasimi, , Member of the Federal Supreme Council and Ruler , Ras Al Khaimah
Sheikh Saud Bin Saqr Al Qasimi, Member of the Federal Supreme Council and Ruler of Ras Al Khaimah, on what makes the Emirate such a great place to visit, do business, and invest.
read articleInterview
Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince, Ras Al Khaimah
TBY talks to Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, on the fundamentals behind the Emirate's strong growth and the work that goes into improving the economic outlook for the next generation.
read articleInterview
Christer Viktorsson, Directing General, Federal Authority for Nuclear Regulation (FANR)
TBY talks to Christer Viktorsson, Director General of the Federal Authority for Nuclear Regulation (FANR), on the role of the institution in advancing the nuclear energy regulatory environment, the Barakah Power Plant, and the importance of an integrated network.
read articleInterview
Saif Mohammed Al Suwaidi, Directing General, UAE General Civil Aviation Authority (GCAA)
TBY talks to Saif Mohammed Al Suwaidi, Director General of UAE General Civil Aviation Authority (GCAA), on opportunities in the sector and GCAA's contributions to the development of aviation in Abu Dhabi.
read articleInterview
Dr. Eng. Mohammed Nasser Al Ahbabi, Director General, UAE Space Agency
TBY talks to Dr. Eng. Mohammed Nasser Al Ahbabi, Director General of the UAE Space Agency, on the mandate of the agency, cooperating with international space agencies, and developing a solid private ecosystem.
read articleInterview
Mohammed Ahmed Bin Abdul Aziz Alshehhi, Undersecretary of the Ministry of Economy , UAE
TBY talks to Mohammed Ahmed Bin Abdul Aziz Alshehhi, Undersecretary of the Ministry of Economy of the UAE, on the value of creativity, the development of the industrial sector, and supporting SME development.
read articleInterview
Mansour Al Mansoori, Directing General, National Media Council (NMC)
TBY talks to Mansour Al Mansoori, Director General of the National Media Council (NMC), on the changing nature of media consumption in the UAE, developing local content, and improving literacy in the Emirates.
read articleInterview
Khalifa Bin Salem Al Mansouri, , Undersecretary of the Department , Economic Development – Abu Dhabi (ADDED)
TBY talks to Khalifa Bin Salem Al Mansouri, Undersecretary of the Department of Economic Development – Abu Dhabi (ADDED), on its plans to make the Emirate a better place to do business, the new industrial plan, and how it is fostering innovation.
read articleInterview
Khaldoon Khalifa Al Mubarak, Group CEO & Managing Director, Mubadala Investment Company
TBY talks to Khaldoon Khalifa Al Mubarak, Group CEO & Managing Director of Mubadala Investment Company, on how the merging of two key investment entities will drive Abu Dhabi's diversification strategy.
read articleInterview
Dr. Sultan Al Jaber, CEO, Abu Dhabi National Oil Company (ADNOC Group)
TBY talks to Dr. Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC Group), on the significance of ADNOC Distribution's listing on ADX, investing in downstream, and the importance of strategic partnerships.
read articleInterview
Maryam Eid AlMheiri, CEO, Media Zone Authority – Abu Dhabi & twofour54
TBY talks to Maryam Eid AlMheiri, CEO of the Media Zone Authority – Abu Dhabi & twofour54, on the growth and development of the Emirate as a media and film production hub, and the Emirati values she hopes to spread during the “Year of Zayed."
read articleColumn
Laurent A. Voivenel, Senior Vice President Operations and Development for the Middle East, India, and Africa, Swiss-Belhotel International
TBY talks to Laurent A. Voivenel, Senior Vice President Operations and Development for the Middle East, India, and Africa, Swiss-Belhotel International, on the sector.
read articleInterview
Hamad Buamim, President & CEO, Dubai Chamber of Commerce & Industry
TBY talks to Hamad Buamim, President & CEO of Dubai Chamber of Commerce & Industry, on boosting trade with Latin America, digitizing government services, and capitalizing on the China-Pakistan Economic Corridor.
read articleInterview
Sami Al Qamzi, Directing General, Department of Economic Development (DED)
TBY talks to Sami Al Qamzi, Director General of the Department of Economic Development (DED), on transforming Dubai into a smart economy, creating the happiest city in the world, and securing a knowledge-based economy for the future.
read articleFocus: Global reach of DP World
A Whole New World
The familiar strategy of strong centralized leadership coupled with copious capital reserves and an aggressive acquisition strategy has lead DP World to global recognition within two decades. Today, the company's global positioning can be used as a tool for developing infrastructure in high-growth markets for the larger benefit of UAE investment and trade.
read articleInterview
Sheikh Ahmed bin Saqr Al Qasimi, Chairman, Ras Al Khaimah Economic Zone (RAKEZ)
TBY talks to Sheikh Ahmed bin Saqr Al Qasimi, Chairman of Ras Al Khaimah Economic Zone (RAKEZ), on the establishment of the economic zone, the benefits of operating in the zone, and attracting international clients.
read articleInterview
Ramy Jallad, Group CEO , Ras Al Khaimah Economic Zone (RAKEZ)
TBY talks to Ramy Jallad, Group CEO of Ras Al Khaimah Economic Zone (RAKEZ), RAK Free Trade Zone (RAK FTZ), and RAK Investment Authority (RAKIA), on the Emirate's comfortable position within the GCC, increasing investment, and upcoming projects.
read articleInterview
Sheikha Bodour bint Sultan Al Qasimi, Chairperson , Sharjah Investment and Development Authority (Shurooq)
TBY talks to Sheikha Bodour bint Sultan Al Qasimi, Chairperson of Sharjah Investment and Development Authority (Shurooq), on the principles guiding Sharjah's economic development strategy, opportunities for private sector contribution, and the role of entrepreneurship in the Emirate.
read articleInterview
Sultan Abdullah bin Hadda Al Suwaidi, Chairman, Sharjah Economic Development Department (SEDD)
TBY talks to Sultan Abdullah bin Hadda Al Suwaidi, Chairman of the Sharjah Economic Development Department (SEDD), on attracting FDI and optimizing customer satisfaction to support Sharjah's economic growth.
read articleInterview
Sheikh Khalid bin Rashid Al Mua’lla, Chairman, UAQ FTZ
TBY talks to Sheikh Khalid bin Rashid Al Mua'lla, Chairman of UAQ FTZ, on enacting the most investor-friendly set up processes, providing the right world-class amenities for long-term growth, and serving as a great impetus for industrial diversification.
read articleInterview
Saeed Nasser Al Talay, Chairman, Umm Al Quwain Chamber of Commerce and Industry
TBY talks to Saeed Nasser Al Talay, Chairman of Umm Al Quwain Chamber of Commerce and Industry, on the biggest land investment opportunities, boosting investment in IT and construction, and on best PPP collaboration practices.
read articleInterview
Ali Eissa Alnuami, Directing General, Department of Economic Development-Ajman (DED-Ajman)
TBY talks to Ali Eissa Alnuami, Director General of the Department of Economic Development-Ajman (DED-Ajman), on increasing investor happiness, enhancing consumer rights, and treating foreigners like locals.
read articleFocus: Maritime Infrastructure
Big Impacts
The Ajman government is planning on building a new port in Al Zowra that will allow the Emirate to receive larger ships and handle a larger number of containers. The expected investment is AED2 billion (USD544 million) and is supposed to be complete by the third quarter of 2020.
read articleInterview
Dr. Thumbay Moideen, Founder & President, Thumbay
TBY talks to Dr. Thumbay Moideen, Founder & President of Thumbay, on helping build the Emirate's finest medical and educational facilities, expanding the medical tourism push from Africa, and making the right kind of generational impact.
read articleInterview
Mohammed O. Bin Majed Al Aleeli, Managing Director, Fujairah Department of Industry and Economy
TBY talks to Mohammed O. Bin Majed Al Aleeli, Managing Director of Fujairah Department of Industry and Economy, on supporting economic development, advancing oil transport services, and advising SMEs to draw attention to Fujairah.
read articleInterview
Khalid Mohammed Al Jassim, Directing General, Fujairah Chamber of Commerce and Industry
TBY talks to Khalid Mohammed Al Jassim, Director General of Fujairah Chamber of Commerce and Industry, on facilitation of domestic and foreign business relations, Fujairah's advantages as an emirate, and opportunities for diversification.
read articleInterview
Dr. Salem Abdu Khalil Mohamed Al Zyni,, Technical Advisor , Fujairah at Fujairah Oil Terminals
TBY talks to Dr. Salem Abdu Khalil Mohamed Al Zyni, Technical Advisor for the government of Fujairah at Fujairah Oil Terminals, on getting vessels to switch from offshore to onshore, the cyclical nature of the industry, and staying one step ahead of clients' needs.
read article
