WEEKLY BUSINESS ROUNDUP - 2nd July 2023 – 8th July 2023

World Investment Report 2023 reports UAE recorded highest ever FDI inflow in 2022 at US$ 22.7 billion

As per the latest World Investment Report 2023 released by the United Nations Conference on Trade and Development (#UNCTAD), UAE recorded its highest-ever FDI inflow in 2022 at US$ 22.7 billion – marking 10% increase from US$ 20.6 billion in 2021. While global FDI inflows declined by 12%, UAE built an ecosystem that enabled robust FDI inflow and has impressively attracted 60% of the total FDI received by the Gulf Cooperation Council bloc in 2022. Moreover, UAE received 997 greenfield projects - ranking as the fourth-largest recipient and marking 84% increase in greenfield projects. Two of the largest greenfield projects in the UAE will be based in Abu Dhabi in the space of neutron therapy hospital, medical university, convention centre and a green hydrogen plant.

 

UAE committed to achieving climate neutrality, affirms COP 28 President Designate

The launch of the UAE Energy Strategy 2050 marks a step forward that highlights the UAE’s commitment to developing favourable policies to achieve sustainable, economic and social development aligned with efforts in the direction of climate action. The development of the National Hydrogen Strategy enables all concerned national authorities in UAE to achieve desired progress in sustainable development, climate action and energy security. Over the last decade, UAE has successfully increased renewable energy capacity more than any other country in the world. 

 

MoF releases report highlighting key accomplishments in 2022

The UAE Ministry of Finance (MoF) in its 2022 annual report titled "Remarkable Achievements Shaping Promising Financial Prospects" highlights MoF's most prominent achievements, international participation, performance in initiatives, leadership councils and committees, and strategic objectives. The MoF focuses on building capabilities that support the UAE’s competitiveness in line with government vision and direction. MoF has built a solid financial system that manages and diversifies financial resources and supports sustainable economic/social development.

 

Total direct and indirect economic impact of re-exports estimated at AED 48 billion in the UAE

Under the visionary leadership, the UAE Cabinet approved the national agenda for re-export development 2030, which includes 24 initiatives and programmes, targeting achieving 50% increase in the added value of the UAE economy through re-exports by 2030. In 2022, the total value of the UAE's foreign trade reached AED2.23 trillion, marking 17% increase from 2021. The share of re-exports totalled AED614.4 billion or 27.5% of the total value reaffirming UAE’s position as a facilitator of global trade.

 

UAE economy headed for stronger growth in H2 2023

Despite roadblocks in the global economy, the UAE economy is headed for growth, recovery, and prosperity in H2 2023. As per International Monetary Fund, UAE is projected to achieve 3.6% increase in GDP in 2023 – driven by enhanced domestic activity. Further to the solid growth rate of 7.9% in 2022, UAE is estimated to record continued growth benefiting from sustained tourism activity and higher capital expenditure. The World Bank projected that the real GDP of the UAE will grow by 2.8% in 2023 driven by an expected 4.8% growth in the country’s non-oil sector. 

 

Dubai Customs highlights power of partnerships between public and private sectors in building knowledge centric economy

The Dubai Customs Consultative Council (DCCC) highlighted the value of partnerships between the private and public sectors in achieving the economic goals set forth in Dubai Agenda D33. These partnerships play a crucial role in strengthening Dubai’s trade, building a knowledge-based economy, and driving economic development in key sectors across UAE. 

 

26953 new investor accounts added in Dubai Financial Market in first half of 2023  

The Dubai Financial Market (DFM) based brokerage companies added 26,953 new investor accounts in H1 2023. This figure showcases the number of new investor accounts at DFM marked 48% increase during the first five months of 2023 - compared to 18,204 new accounts in 2022. Further DFM reported solid momentum since the listing of 10 governmental and semi-governmental companies like DEWA, TECOM group, Union Coop, Salik and more. 

 

DMCC maintains year-on-year performance while adding 1456 new companies

Dubai Multi Commodities Centre (DMCC) welcomed 1456 new member companies in the first six months of 2023 marking a near identical six-month performance since H1 2022 when it registered 1,469 new companies. Currently DMCC is home to 23000+ companies from across the globe - contributing an estimated 11% to Dubai's  Foreign Direct Investment.

 

Dubai Customs completes 12 million customs declarations in 6 months marking 10% growth

Dubai Customs successfully processed 12.3 million customs declarations during H1 2023 – recording 10% growth compared to H1 2022. With its advanced customs systems and smart services Dubai Customs recorded an impressive average of 48 declarations per minute. This has strengthened UAE’s position in trade - which is reflected in the Global Competitiveness Report 2023, where UAE ranks among the top 10. 

 

Ajman GDP grew 5.7% in 2022

As per Ajman Statistics Centre the gross domestic product of Ajman grew by 5.7% for 2022 compared to 2021. This surge is primarily driven by the steady growth of the local economy and robust economic diversification policies. Key contributors to the emirate's GDP were transformative industries, construction, wholesale and retail trade, real estate and education.