Given the massive global impact of COVID-19, it’s no surprise that economies across the world are suffering.
But thanks to the government’s quick response to the global pandemic and key initiatives already in place to improve and diversify the national economy, the UAE is ready to bounce back with renewed optimism.
Here’s a look at four key policies set to aid economic recovery and attract international investment in the UAE.
- UAE Vision 2021
The UAE Vision 2021 aims to make the UAE one of the leading countries in both business development and quality of life.
The National Agenda of Vision 2021 comprises six national priorities.
- Competitive knowledge economy: To create a knowledge-based economy which promotes and encourages research, development, innovation and entrepreneurship in its national workforce. The UAE aims to become a world-class leader in business development, entrepreneurship and ease of doing business.
- World-class healthcare: Accreditation to national and international quality standards for medical services, staff and hospitals, and a focus on preventative medicine, especially in the reduction of lifestyle-related diseases. A responsive and proactive healthcare system that is ready and capable to deal with pandemics.
- Safe public and fair judiciary: The reinforcement of a fair and active legal system that protects the rights and safety of citizens, businesses and visitors, establishing the UAE as one of the safest countries in the world.
- Sustainable environment and infrastructure: Active plans and strategies to improve the quality of air and water while increasing the use of clean energy to reduce the carbon footprint. World-leading infrastructure with regard to roads, airports, ports, electricity and telecommunications.
- First-rate education system: A complete transformation of the current education system and teaching methods so that students can excel on a global level in core subjects such as reading, mathematics and science. Major investment in education which focuses on advanced technology while building a culture of leadership, creativity and ambition to produce a highly skilled pool of homegrown talent.
- Cohesive society and preserved identity: To promote an inclusive environment that integrates all areas of society while preserving national identity, culture and heritage. The aim is to create a cohesive, tolerant and inclusive environment that promotes a happy, healthy, positive lifestyle for both individuals and businesses.
Each of these priorities will be measured by key performance indicators (KPIs) to ensure that targets and standards are met.
- Foreign Direct Investment Law
The Foreign Direct Investment (FDI) Law is a welcome and positive step for international entities and individuals looking to set up sustainable businesses in the UAE. The new law allows international investors to own up to 100% of a business in the UAE.
There are 122 eligible economic activities, known as the Positive List, which include manufacturing, agriculture, space, renewable energy, healthcare, education and research and development.
Investment in the UAE offers a number of benefits, including:
- No corporation tax
- A dynamic and high-quality business environment
- Excellent infrastructure and transport system
- An ideal geographical location to tap into Middle East and Asian markets
- Access to low-cost energy
- Solid banking sector offering favourable regulations for international investors
- Emirati citizenship
In a radical change to past policy, the UAE is now allowing select investors, professionals, special talents and their families to obtain Emirati citizenship. The aim is to attract international talent that will make a positive contribution towards the development and prosperity of the country.
These newly established citizens will be able to make long-term plans, and actively contribute to a dynamic, inclusive society in a country they can finally call home.
- UAE response to COVID-19
Since the outbreak of COVID-19, the government has implemented a number of protocols and strategies to protect the health of its citizens and residents. The UAE’s swift response to the pandemic has helped to contain the virus and ensure business continuity, while minimising the impact on the economy.
- A National Disinfection Programme
- Drive-through COVID-19 testing centres
- Quick construction of field hospitals
- A smart, virtual learning infrastructure to ensure continuous education
- A National Wellbeing Campaign to provide mental health support for all UAE residents psychologically impacted by the pandemic
- More than 100 economic stimulation programmes and financial support for businesses
The UAE’s effective response to the pandemic has enabled the country to return to normal life and resume economic activity in a much faster timeframe. The result is a predicted economic growth of 4% in 2021.
While it may take time for the global economy to recover from the impact of COVID-19, the UAE is excelling as a model of drive, ambition and optimism. Its long-term goals for a cleaner, happier and more prosperous future are set to establish it as one of the most desirable nations to invest in.
So why RAK ICC?
Given the above, you may well have decided that the UAE is the right place for you. But if you really want to make the most of all these benefits, you’ll need the right partner for the registration and incorporation of your international business company.
If you choose RAK ICC, we will offer you support every step of the way, always fully complying with international standards, regulations and best practices. Contact us to get started.