The UAE an Influential Global Economic Hub
- 13 March 2014
A recent Economist Intelligence Unit (EIU) report highlighted several positive attributes of the UAE’s economy. The report pointed out that the UAE is strengthening its position as a global financial, commercial and tourism hub, which are essential pillars of economic growth and catalysts for further diversification of the sources of revenue. While the country plans to invest in the oil sector – in order to increase production output to 3.5 million bpd by the end of this decade – the UAE also continues to make investments in renewable energy and nuclear power to secure its growing energy needs boosted by accelerating economic growth.
The report gives a positive view of the UAE economy and underlines the confidence of EIU, and other international institutions, in the country’s economic performance. The EIU outlook emphasizes various facets of the UAE economy. It highlights that the UAE’s economy connects various parts of the world through the flow of goods and capital as well as through movement of people, including businessmen and investors. These individuals either seek to take advantage of the promising investment opportunities in the country or look for jobs to fulfill their ambitions. The UAE has also become an attractive hub on the world tourism map.
Besides successfully turning the UAE’s economy into a financial, commercial, and tourism hub, the country has also managed to become one of the vital economies in the region as is evident in its GDP and annual growth rates. This is besides the sustainability that has become associated with this growth, which indicates the investment opportunities that are not available to any other economy in the region. Its economy’s positive effects and big development returns have exceeded the regional level because it has become a catalyst for economic growth at a global level.
This is simply because the UAE adopts ambitious and balanced economic and development policies. It doesn’t set limits to growth and harnesses all its financial, economic and natural resources to achieve development. This is also demonstrated in the country’s keenness to balance the development of its production capacity in conventional energy sector, to meet its immediate energy needs, and at the same time investing in new and renewable energy. This is to ensure the sustainability of energy supply and to avoid any setback to its development model in the distant future.
Moreover, the UAE’s economy is no longer dependent on just one sector. It is now truly diversified, with increasing contribution to its GDP coming from non-oil sectors such as tourism, financial services, trade, renewable energy, infrastructure and industry. The average growth of these sectors now exceeds growth rates of overall economy. These sectors are increasingly stimulating the UAE’s export potential, thereby raising its trade surplus. All this is boosting the UAE’s economic performance and putting national development on the path of sustainability.