UAE Prioritizes Economic Development with Strategic Agreements and Investments

The United Arab Emirates (UAE) is steadfast in its pursuit of a balanced policy that prioritizes economic development as outlined in the 'Principles of the 50' strategic document. This commitment is reflected in recent agreements and investments aimed at bolstering the nation's economic and trade relations.

In a significant move, the UAE and Qatar have signed an agreement to prevent double taxation and curb fiscal evasion of income taxes. This agreement is expected to enhance financial, economic, and investment partnerships between the two nations. UAE Minister of State for Financial Affairs Mohamed Al Hussaini emphasized, 'The aim is to strengthen bilateral economic and trade relations and fully protect companies and individuals from direct and indirect double taxation.'

The UAE's strategy involves forming strategic partnerships with other nations, promoting investment opportunities, and stimulating trade. To date, the UAE has signed 146 double taxation avoidance agreements, with Saudi Arabia being the only other Gulf Cooperation Council (GCC) country on the list. Additionally, the UAE has 114 agreements aimed at protecting and promoting investments.

The UAE's economic development and strategic agreements have significant implications for the global economy and trade relations. The UAE continues to grow and diversify its economy, it may emerge as a key player in shaping global economic policies and influencing regional trade dynamics.

The UAE's economic growth forecast remains optimistic. According to the World Bank's Spring 2024 Gulf Economic Update, the UAE's real GDP is expected to grow by 3.9% in 2024. This growth is driven by a substantial increase in oil production by OPEC+ and a resurgence in global economic activities. The non-oil sector is projected to grow by 5.8%, while the non-oil sector is expected to see a 3.2% increase, bolstered by strong performances in tourism, real estate, construction, transportation, and manufacturing.

Strategic investments are a cornerstone of the UAE's economic policy. The country has committed to a $10 billion investment in tourism infrastructure and initiated a large public-private partnership portfolio valued at $10.9 billion. Key investments include Abu Dhabi's significant allocation towards tourism infrastructure and ADNOC Gas's ambitious $13 billion gas expansion plan over the next five years.

The UAE's commitment to economic self-sufficiency and attracting investment was evident at the recent Make it in the Emirates (MIITE) Forum. Government enterprises and private companies committed an additional $6.26 billion to local manufacturing, raising the total value to $38.93 billion. The forum saw 82 agreements signed, supporting Operation 300bn, a strategy aimed at increasing manufacturing value added to $81 billion by 2031.

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, highlighted the growth of the industrial sector, stating, 'In just three years, since the establishment of the ministry, the industrial sector’s contribution to GDP has grown 49% to AED 197 billion ($53.64).' He added that the UAE has emerged as a global hub for industrial investment and innovation.

The UAE's economic policies have also led to a recovery in employment levels to pre-pandemic figures. The Emiratisation strategy has been reinforced with a new budget of $1.74 billion aimed at integrating 36,000 citizens into the private sector by 2024.

The UAE's pursuit of economic development through strategic agreements and investments highlights its commitment to a balanced policy that serves its national interests. The nation continues to promote economic growth and diversification, remaining a key player in the global economy.

Key Takeaways

• UAE signs agreement with Qatar to prevent double taxation and boost economic ties.
• UAE has 146 double taxation avoidance agreements and 114 investment protection agreements.
• UAE's real GDP is expected to grow by 3.9% in 2024, driven by oil production and global economic activities.
• UAE commits to $10 billion investment in tourism infrastructure and $10.9 billion public-private partnership portfolio.
• UAE's industrial sector's contribution to GDP grows 49% to AED 197 billion ($53.64) in three years.