Economy
From The Report: Dubai 2019
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Dubai is the second-largest of the seven emirates that comprise the UAE in terms of economic size, and the main driver of economic diversity in the country. Its tourism, logistics, manufacturing and services sectors provide opportunities for growth beyond oil and gas, the industry upon which many economies in the region are dependent. At the country level hydrocarbons account for 30% of GDP and oil exports for less than 40% of revenues. Economic development programmes for the emirate have been designed to leverage its strategic location between Europe and Asia, and the airline Emirates has played a significant role in bringing foreigners to Dubai, which accounts for two-thirds of tourist arrivals in the country. This chapter contains interviews with Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry; Sami Al Qamzi, Director-General, Department of Economic Development; and Ahmed bin Sulayem, Chairman, Dubai Multi Commodities Centre.

Articles from this Chapter

Overview

Across the board: Foreign ownership reforms and Expo 2020 preparations are set to stimulate economic activity in the near term
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Dubai is the second-largest of the seven emirates that comprise the UAE in terms of economic size, and the main driver of economic diversity in the country. Its tourism, logistics, manufacturing and services sectors provide opportunities for growth beyond oil and gas, the industry upon which many economies in the region are dependent. Dubai’s ability to branch out into new areas, as well as its capacity to draw in foreign tourists and investors, makes the UAE the most diversified economy…

Interview

Building ties: Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry, on expanding trade relationships with promising markets
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Interview:Hamad Buamim How has the introduction of value-added tax (VAT) in the UAE impacted its business environment and competitiveness? HAMAD BUAMIM: Businesses in the UAE have adjusted quickly to the new tax system during 2018. Beyond the financial and regulatory benefits, VAT is expected to have a positive impact on business and investor confidence as it is introducing more transparency in the market, reducing reliance on oil revenues and ultimately enhancing the UAE’s economic competitiveness.…

Interview

Fiscal optimisation: Sami Al Qamzi, Director-General, Department of Economic Development (DED), on the emirate’s evolving fiscal regime
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Interview:Sami Al Qamzi How has the introduction of value-added tax (VAT) affected government revenues and allowed for the provision of more data on the emirate’s economy? SAMI AL QAMZI: The successful and carefully planned introduction of VAT will contribute to the realisation of the UAE’s goal of reducing its reliance on oil revenues and investing to strengthen sustainability, enhance its integration into world markets and transition to a diversified, innovative, knowledge-based economy.…

Analysis

Proactive policies: Lower fees and extended visas to encourage foreign participation
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With regional economies still feeling the effects of lower oil prices since mid-2014, trade wars occurring across the globe, a stronger US dollar pushing up the value of the dirham and increased risks weighing on investor sentiment, Dubai and the UAE have introduced a diverse set of cost-cutting reforms that are largely designed to encourage openness to foreign investment. Additionally, the Dubai government plans to bear a greater share of the costs that businesses incur, in what amounts…

Interview

Agile and adaptive: Ahmed bin Sulayem, Chairman, Dubai Multi Commodities Centre (DMCC), on new trade opportunities
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Interview:Ahmed bin Sulayem How might a global trade war impact the Dubai Gold & Commodities Exchange, and what strategies exist to mitigate against this risk? AHMED BIN SULAYEM: Our government sees challenges as opportunities to generate new business. We would love for Dubai to be the intermediary city for business between African countries and China. Around 60% of global re-exports of tea go through Dubai, in part due to the fact that India and China consume most of their own production.…

Overview

Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable future
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Decades of growth in trade and foreign investment have seen the economies of the world become more interconnected and interdependent than ever before. The production of goods and, increasingly, the provision of services has become fractured across borders as corporations create and integrate into regional and global value chains – a process reinforced by international trade and investment regimes. On aggregate, advanced economies have benefitted from these developments, while emerging markets have become the main drivers of growth around the world. However, recent years have seen a new scepticism towards globalisation emerge, alongside…

Overview

Global village: Medium-term prospects suggest globalisation is set to continue for the foreseeable future
OBG
plus

Decades of growth in trade and foreign investment have seen the economies of the world become more interconnected and interdependent than ever before. The production of goods and, increasingly, the provision of services has become fractured across borders as corporations create and integrate into regional and global value chains – a process reinforced by international trade and investment regimes. On aggregate, advanced economies have benefitted from these developments, while emerging markets have become the main drivers of growth around the world. However, recent years have seen a new scepticism towards globalisation emerge, alongside…

Analysis

One year on: A review of the value-added tax after its first year
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One of the major economic changes in Dubai and the UAE in 2018 was the introduction of a 5% value-added tax (VAT). Dubai and other jurisdictions on the Arabian Peninsula have long been popular for their lack of personal and corporate income taxes, and while they remain low-tax jurisdictions overall, this new levy is expected to add sustainability over the long term. The move comes one year after an excise tax was introduced on some products, including cigarettes and drinks that are high in…