UAE bucks trend on economy blues

There is no gainsaying the fact that the UAE is bucking the trend by daring the coronavirus challenge. At a time when the economy is facing a downturn in many parts of the world due to the pandemic, the UAE has been not only been gaining investments from other countries but also venturing into capital investments in other nations.

To illustrate. In implementation of the directives of His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the UAE has announced that it will invest $10 billion with Indonesia’s sovereign wealth fund – Indonesia Investment Authority.

Investments will focus on strategic sectors in Indonesia, including infrastructure, roads, ports, tourism, agriculture, and other promising sectors that have potential for growth and can contribute to growth and economic and social progress.

The UAE also announced a $3 billion investment in Iraq in a fresh bid to strengthen the economic and investment relations between the two nations.

The new investments are aimed to tap new prospects of partnerships between the two countries and accelerating socio-economic and developmental growth in support of the people of Iraq.

However, investment is not a one-way street. The UAE was recently ranked first in the Middle East and Africa region in terms of the number of new foreign direct investment (FDI) projects in the country’s biotechnology sector. The UAE was also ranked third in the region in terms of the volume of capital invested in these projects during the period from 2003 to 2020.

This recognition is set to further strengthen the confidence of global investors in the efficiency and quality of the UAE’s business climate and highlight the extent of development and readiness of its markets to be a preferred destination for future projects. The advanced rankings achieved by the UAE in the field of foreign direct investments in biotech once again underline the country’s leading position in the regional and global investment landscape, thanks to the vision and support of its wise leadership.

The UAE’s ongoing transformation towards a flexible and sustainable economic model is set to further enhance opportunities and prospects for the rapid growth of projects in the sectors of the future.

The UAE has also cleared other bottlenecks. Foreigners opening a company in the United Arab Emirates no longer need an Emirati shareholder or agent under changes to UAE company law.  Until now companies in the UAE had needed a certain shareholding to be held by Emirati nationals, or an Emirati agent, depending on what type of company it was.

“The amendments allow foreign entrepreneurs and investors to fully establish and own companies without any nationality requirements,” WAM said.

“The condition requiring a foreign company wishing to open a branch in the country to have an agent from among the country’s citizens has also been cancelled,” it added.

A February report says the United Arab Emirates announced that Emirati nationality will now be officially attainable for foreigners, in a major first for the Gulf state.

The UAE passport, ranked one of the best in the world for mobility, will be offered to select foreigners and professionals including “investors, doctors, specialists, inventors, scientists, talents, intellectuals, artists and their families,” according to the announcement.

Over the past years, the UAE has succeeded in consolidating its position as an attractive destination for investments and business, and it continues to reinforce its position as a regional and global hub for investment in the sectors of the new economy.

What has bolstered its image as far as financial prestige is concerned is the way it has managed to stem the spread of the coronavirus. That is a major plus point that appeals to foreigners seeking fresh places for investment.