What Are the Most Promising Economic Sectors Identified by the UAE?

The United Arab Emirates (‘UAE’) is experiencing remarkable growth across vital economic sectors, making it an attractive destination for investors. By focusing on advanced technology, artificial intelligence, research and development and the digital economy, the UAE is fostering innovation and enhancing its economic performance.

Let's explore the opportunities these sectors offer and the reasons why investing in the UAE is a smart move. The following sectors have been identified in a recent report by the UAE Ministry of Economy as ‘Promising Economic Sectors’:

Advanced Technology

The UAE is heavily investing in advanced technology and aiming to be a leader in fields such as robotics, biotechnology, and nanotechnology. This commitment is opening up numerous opportunities for investors to participate in cutting-edge advancements.

Artificial Intelligence (AI)

AI is a cornerstone of the UAE's future economic strategy. The country is investing in AI to transform various industries, improve efficiency and create new business opportunities. By investing in AI, you can be part of a transformative wave that is reshaping the future.

Research and Development (R&D)

R&D is at the heart of the UAE's growth strategy. The country encourages partnerships between local and foreign firms to drive innovation and develop new technologies. Investing in R&D in the UAE means being at the forefront of groundbreaking discoveries.

Digital Economy

The digital economy is rapidly expanding in the UAE, with significant investments in e-commerce, fintech and digital infrastructure projects. This sector is crucial for modernising the economy and enhancing its global competitiveness. By investing here, you're contributing to a digital future.

Why does the UAE want investors to invest in Promising Economic Sectors?

The UAE wants investors to invest in these Promising Economic Sectors so that the country can have a technologically advanced economy and be ready for the futuristic digital world. Other compelling reasons for the UAE to promote investment in Promising Economic Sectors are:

1. To promote the UAE’s position as a significant regional and global hub for foreign investment;
2. To develop the production base and infrastructure;
3. To support sectors of national priority;
4. To strengthen partnerships between local and foreign investors;
5. To increase employment opportunities and boost localisation in the private sector;
6. To facilitate the sharing of technology, knowledge and training;
7. To achieve a better return and high added value to the national economy; and
8. To stimulate investment in research and development.

Investing in the UAE's promising sectors offers substantial returns and helps contribute to the country's vision of becoming a global leader in innovation and economic development, where advanced technology, artificial intelligence, research and development, and the digital economy play a pivotal role in shaping the future.

Why Invest in Promising Economic Sectors in the UAE?

The UAE's unwavering commitment to becoming a global hub for innovation and economic development is inspiring. Investing in its promising sectors offers numerous benefits:

• The UAE's strategic location, connecting businesses with markets in the East and West, provides a competitive edge and instils confidence in its business potential.
• The UAE's business-friendly policies: Low taxes, advanced infrastructure and supportive government policies, create an ideal environment for businesses to thrive and make investors feel welcomed and encouraged to invest.
• Focus on Innovation: The UAE's emphasis on innovation and R&D ensures that investors are part of a forward-thinking, dynamic economy.
• Skilled Workforce: A well-educated and trained workforce supports the growth and success of businesses.
• Economic Stability: The UAE's diversified economy and stable political environment make it a secure and attractive investment destination.

By investing in the UAE's promising sectors, you not only achieve substantial returns but also play a crucial role in the country's journey to becoming a global leader in innovation and economic excellence.

Strategic Impact Activities

Under Cabinet Resolution No (55) of 2021, the UAE has identified specific activities that are designated as having a ‘Strategic Impact’ and require specific regulatory approvals and ownership restrictions. These activities include those in the fields of security, defence, finance, telecommunications, and religious services, each with its own set of regulatory requirements.

1. Security, Defence and Military Activities: The Ministry of Defence or the Ministry of Interior must approve these activities.
2. Banks, Exchange Houses, Finance Companies and Insurance Activities require approval from the Central Bank of the UAE.
3. Currency Printing: Approval is required from the Central Bank of the UAE.
4. Telecommunication: Approval is required from the Telecommunications and Digital Government Regulatory Authority.
5. Pilgrimage (Hajj and Umra Services): The General Authority of Islamic Affairs & Endowments must approve the pilgrimage.
6. Holy Quran Memorization Centres: Approval is required from the General Authority of Islamic Affairs & Endowments.
7. Services Related to Fisheries: 100% Emirati ownership is required.

Licensing Procedures for Strategic Impact Activities

If you're a foreign investor looking to engage in these strategic impact activities, follow these licensing procedures:

1. Application Submission:Submit a license application to the Department of Economic Development in the relevant emirate.
2. Application Review:The Department of Economic Development applies to the relevant regulatory authority within five working days.
3. Regulatory Authority Decision: The regulatory authority issues its decision within 14 working days, which may include approval, criteria for national share, or rejection.

Conclusion

Investing in the UAE's Promising Economic Sectors is a strategic move for any forward-thinking investor. The UAE's commitment to advanced technology, artificial intelligence, research and development and the digital economy positions it as a global leader in innovation. With robust support from the government, a strategic location and a business-friendly environment, the UAE offers substantial opportunities for growth and success. By investing in these dynamic sectors, you not only gain impressive returns but also contribute to the UAE's vision of becoming a global hub for economic excellence and innovation. Embrace the future by investing in the UAE today.