UAE has opened up from the COVID-19 lockdown and the business is getting back to normal.
As the international borders are opening up, the global tourists and residents stranded across various parts of the world are flying back to UAE.
UAE is all set to welcome the global investors who wish to settle and start a business in the UAE. UAE has a well-managed business ecosystem to support all the business requirements of global investors.
Future Investment Opportunities for Global Investors in the UAE
Post-COVID-19 the global investors can set up business in any of the 40+ Freezones and start scaling up their business easily.
By leveraging the enormous business opportunities in the UAE and tapping into the global markets, businesses in the UAE can achieve competitive advantage due to the strategic location, ease of doing business, zero taxation, etc.
The Freezones in UAE offer attractive business setup packages and world-class infrastructure facilities and a host of investor benefits such as 100% foreign ownership, no customs duty on imports to the Freezone, tax-free status, etc.
Cost-effective Business Setup in Dubai
Businesses are to benefit greatly from the cost-effective company setup cost and wide business opportunities available in the UAE across various sectors.
UAE could effectively contain the spread of the Virus through strict regulations, practicing social distancing, conducting National Steralization drives, mass testing centers, etc.
UAE has well-structured risk mitigation and a business continuity plan in place to sustain the business ecosystem, drive-in foreign investments, promote trade, bring businesses back to normal at the earliest and kick start the economic activities in full vigor.
So, how is UAE’s core industry sectors reviving from the COVID-19 impact, and what is the road ahead. Let’s find out.
UAE’s Core Industry Sectors and the Risk Mitigation Plan
The real estate, transportation, and tourism generate significant revenue for the government. With the onset of the Global Pandemic, these sectors have affected the most.
However, UAE has well-defined business continuity strategies in place to bring back the businesses to track and grow demand.
Property Sector in UAE
The demand for properties globally has affected as purchase decisions are deferred and operational challenges are arising due to the restricted travel across the world.
Many prospective buyers are spending more time researching and learning more about the projects and financing options available.
Risk Mitigation Plan for Property Sector in the UAE
To mitigate the effects of the pandemic, the property sector is adopting new strategies to merge the supply-demand gap.
Developers are launching attractive options to first time buyers, reducing interest rates for property loans, long term installment plans, buy now pay later schemes to attract customers for the low ticket value properties.
Shifting of Expo 2020 and Adding More Affordable Properties to the Portfolio
With the Expo 2020 moved to 2021, the real estate sector has got some breathing space to bring out affordable solutions for the investors who will be visiting UAE for the Expo.
Shifting of Expo 2020 due to the prevailing situation of Covid-19 has not affected Dubai’s long terms goals of business sustainability. Temporarily, the business scenario has to adjust to the new normal.
Dubai has a series of long-term goals such as transforming into a smart city, enhancing foreign direct investment, technology adoption, and more that are to be achieved by 2030.
Industry experts are anticipating, the Property Market is expected to bounce back to usual by 2021 and more affordable housing projects will be added to the UAE’s real estate portfolio over the coming year.
Risk Mitigation in Strategic Sectors – Building a higher Investor Confidence
Globally almost all of the key industry sectors like real estate, transportation, manufacturing, and tourism are facing a downturn. Also, the drop in oil price is taking the situation to a further downtime currently.
The risk mitigation that the UAE is working on to revive the industry sectors and instill market confidence is the following:
Central Bank Stimulus Package
The Economic Stimulus Package announced by the UAE government to support SMEs has increased the market confidence among the business owners and also.
The Central Bank has launched an AED 100 billion comprehensive Economic Support Scheme to support small businesses, reduce the cost of doing business in the UAE, and accelerate the implementation of major government infrastructure projects.
Also, banks have launched various incentives for the pubic such as the loan deferrals, easy account opening, credit payment waives offs, minimum balance accounts, etc.
Freezone Stimulus Package
The Freezones of Dubai; the Dubai International Financial Center (DIFC), Dubai Multi Commodities Center (DMCC), Jebel Ali Free Zone (JAFZ), Dubai Airport Freezone (DAFZ) have also introduced exclusive stimulus packages.
It is aimed for the business owners operating in the respective Freezones to support, promote, and sustain trade and operations.
UAE’s Vision 2021 and the National Innovation Strategy
UAE has always been at the forefront of innovation. UAE has a very robust resilient policy framework for promoting trade.
In alignment with the UAE Vision 2021 and the National Innovation Strategy, UAE is focused on transitioning into a knowledge-based economy.
The six national priorities in focus are the following:
- World-Class healthcare
- First-rate education system
- Sustainable environment and infrastructure
- Cohesive society and preserved identity
- Safe public and fair judiciary
- Competitive knowledge-based economy
UAE is thereby diversifying to non-oil sectors, defining regulatory frameworks and roadmaps to improve business productivity across all of the key industries apart from oil.
Road Ahead for UAE Business Ecosystem
According to a recent survey of financial lenders, the support measures have instilled considerable confidence in the UAE market. Almost 42% of respondents in the UAE believe their companies could go back to ‘Business as Usual’ within 3-6 months.
Latest Technology Investment
Businesses must adapt to the latest technology and invest in future business growth areas.
The healthcare sector innovations, crisis management, risk management, artificial intelligence, data analytics are must-haves to move ahead in a dynamic business environment.
Changing Buyer Perceptions Post Covid-19
The consumer perception and shopping behavior to bigger purchases such as property investment, purchasing a car, as well as lifestyle items such as electronics, restaurants, etc., are changing post-COVID-19.
There is downtime due to the global pandemic spread across the world. People are mostly deferring big-ticket purchases. However, the market confidence will regain as more business is opening up and as daily operations get back to normal.
To know more about the business setup opportunities in the UAE, talk to our expert Business Consultants in the UAE.