Global investors’ buoyant outlook for UAE due to business-friendly policies

Inayat-ur-Rahman,Deputy Business Editor

COVID-19 has brought new opportunities and challenges for the governments and markets to navigate within the coming quarters.

GCC continues to remain resilient with solid macroeconomic fundamentals amid opportunities in various industries to cash upon. UAE has positioned herself globally as a tourist hub, modern infrastructure and landscape, tech-savvy government and people, transparency with good governance.

This was stated by Kashif Ansari, Group CEO, Juwai IQI, during an exclusive interview with Gulf Today, adding that the global investors with long- term view and investment strategy have a buoyant outlook for UAE.”

“Because of its investor-friendly policies, growth potential and profit landscape can buttress the economic progression, at the macro level,” he added.

The official mentioned that investors would like to move to countries which have effectively dealt with COVID-19 and maintained income levels to move to higher living standards.”

He noted that recently he has shared in his macroeconomic forecast that three key industries would support the growth trajectory for UAE, which are tourism, energy and technology.”

“With the recently signed Abraham accord, a lot of tourists are coming back into the market. The tourism sector, a pillar of the UAE non-oil economy, accounts for approximately 16 -17 per cent of the country GDP. Hotels have witnessed increased occupancy lately with tourist coming from Europe, ME and Africa region.”

“Oil prices have bounced back and currently, Brent is trading at $51/barrel as of Dec 24-2020 with increased demand coming from China and ASEAN.”

At Juwai IQI, we expect oil prices to be meandering around $50 to $65 per barrel in 2021 thus supporting the fiscal side of the Govt balance sheet. This provides room for the government to spend money on balancing the structural issues and infrastructure investment. Infrastructure investment has a direct correlation with GDP growth, according to classified studies from savvy experts.

 “Lastly, many technology investors are keen to explore opportunities in Dubai as startups are ready for takeoff stage. Moreover, UAE has made impressive progress in digitalization of the economy, AI and 5G. In the next 3-5 years, economies will achieve productive and faster growth where AI is focused, in organizations. So, we can expect substantial investment coming from the technology entrepreneurs in the long run.”

Ansari stated that real estate sector has witnessed renewed momentum with rental and capital appreciation in high-end properties moving up in a very structured manner. So, for next year, we can expect property transactions to be back in the business equation.

“Dubai remains the center of attraction for many global sophisticated and smart investors. The beauty of Dubai’s real estate market is that transactions are happening every-day. Govt is totally committed to adopt technology to move ahead much faster in a structure manner. With bilateral relationship restored with Israel, we expect investors will have renewed interest in the RE market and momentum should gear up to the new levels.”

RE market in Dubai can witness investors from Europe and USA as global migration movement is picking pace with as investors want 4 key drivers to relocate macroeconomic stability, safety and security, modern infrastructure, higher living standards and economic policy consistency

“The recent announcement of  100% foreign ownership is very strategic and excellent move. Market has responded positively to the move set by the UAE Govt. Global investors feel that government  is investors-friendly and committed to enhance foreign investment in the country due to stability in the economic landscape. Global investors have viewed the news very positively and making plans to take advantage of the offer. This heralds a new era whereby investors would take position in various industries and asset classes.

“The government looks totally committed to bring foreign investors to UAE and Dubai and to promote the country aggressively to the global investors who can leverage from it. UAE tends to benefit in the long run as it bolster aggregate demand and investment in the GDP equation.”

 “The recent announcement by Dubai Ruler about supporting tourism and home ownership for investors is a good policy for the global investors. Juwai IQI appreciates the policy parameters that the country is undertaking in order to attract FDI and bring back much needed tourism in Dubai, it a smart move. Home ownership is another area where real estate sector gets the boost. All these measures are good for the economy not only in the short run but also in the long run.” he concluded.