Abdulla bin Touq Al Marri, Minister of Economy, emphasizes the Ministry’s dedication to fostering innovation, creativity, and investment across all key economic sectors. The Ministry is actively shaping policies and legislation to support the new economic model and boost investment in crucial areas.
Al Marri highlighted that the UAE is on a strong growth trajectory, aiming to elevate its GDP to Dh3 trillion by 2031. Despite global and regional uncertainties, the UAE has demonstrated exceptional GDP growth and secured its place among the world’s top 10 economies in various global competitiveness indicators. The country ranks fifth globally in the Real Economic Growth Rate Index and sixth in GDP per capita according to the IMD World Competitiveness Yearbook 2023.
Al Marri affirmed the UAE government’s ongoing commitment to enhancing policies and launching initiatives that bolster investor confidence, including the establishment of legal frameworks, financial incentives, and protections for intellectual property.
Interview Highlights:
The UAE economy has shown strong growth momentum in the post-COVID era. What are the prospects for the next three years?
Today, the UAE boasts an open economic environment, characterized by innovative and competitive legislative frameworks. The country has embraced numerous forward-looking economic strategies and flexible policies aimed at diversifying its national economy, particularly in the wake of the COVID-19 pandemic. Over the past three years, the UAE has updated and amended over 13 laws across various economic sectors, focusing on the new economy. There has been a notable expansion in non-oil sectors, especially in sustainable, innovative, and knowledge-based industries. As of the end of 2023, more than 788,000 companies are active in the UAE, and the number of SMEs reached approximately 557,000 by the end of 2022.
In 2023, the economy grew by 3.6% in real terms. While this growth is more modest compared to the 7.9% increase in 2022, it is a significant achievement amid global and regional uncertainties and outpaces the growth rates of the global economy and other GCC countries. These results reflect steady progress towards the national goal of the ‘We the UAE 2031’ vision, which aims to boost the GDP to Dh3 trillion.
What steps or policies on cards to facilitate small investors and SMEs?
Guided by visionary leadership, the UAE emphasizes the growth of SMEs, which constitute 95% of all companies and employ 86% of the private sector workforce. The government provides extensive resources and opportunities to bolster this sector, which is integral to the national economic model. Initiatives like “Future100” aim to support top startups and enhance competitiveness. The UAE’s dedication to nurturing SMEs has earned it the top spot globally for entrepreneurship for the third consecutive year, according to the Global Entrepreneurship Monitor (GEM) report.
The tourism sector will continue to be pivotal for growth in both Saudi Arabia and the UAE. How do you view the role of tourism and its impact on the UAE economy?
The UAE’s tourism sector saw a 26% year-on-year growth in 2023, surpassing 2019 pre-pandemic levels by 14%. The number of hotel guests across the seven emirates reached 28 million, an 11% increase, with hotel revenues totaling Dh43.5 billion—a 15% rise from 2022. The hotel occupancy rate climbed to 75%, one of the highest globally.
The sector’s contribution to the economy is projected to reach Dh236 billion, or about 12% of GDP, by 2024. The UAE aims to attract 40 million guests to its hotels within the next decade. The launch of the ‘UAE Strategy for Domestic Tourism’ seeks to enhance domestic and international tourism, while the ‘World’s Coolest Winter’ campaign has already boosted hotel revenues by Dh1.8 billion and attracted 1.4 million local tourists. The UAE continues to invest in its tourism sector to achieve its National Tourism Strategy 2031 goals, aiming to add Dh100 billion in tourism investments and increase its GDP contribution by Dh450 billion over the next decade.
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