UAE – The Capital of Consistent Growth
The UAE economy has seen ups and downs in the last year, such as expatriates leaving Dubai after decades, a plunge in energy/fuel prices, and the global pandemic. But, it is still lucrative for businesses to venture into the Gulf market. Because, even in 2021, the UAE has managed to maintain a stable economy. Let’s look at the UAE’s GDP (Gross Domestic Product) graph from previous years.
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Growth of the UAE Markets Since 2015
According to Statista 2021, the UAE’s GDP growth rate was 5.11 per cent in 2015. In 2016, it rose by 3.06 per cent which was followed by 2.37 per cent in 2017. In 2018 and 2019, the GDP grew by 1.19 per cent and 1.68 per cent consecutively.
When the COVID-19 pandemic hit the world and caused a global economic crisis in 2020, the UAE’s economy saw a negative growth of -6.57 per cent. Although challenging, it successfully bounced back to a stable 1.35 per cent in 2021. Global events such as the Expo 2020 Dubai are sure to boost the economy further.
E-commerce Kickstarting in the Post-Pandemic Era
In geographical terms, the UAE can be segmented into 4 regions – Dubai, Abu Dhabi, Sharjah, and the rest of the UAE. While the pandemic is settling down, Dubai’s retail sector has witnessed a surge in 3 activities primarily: 1. Increased spending by international visitors for Expo 2020 preparations.
2. Strong customer demand for supplies like food and clothing.
3. Expanding the e-commerce industry due to the convenience of online processing.
Currently, the demand-supply curve is being flattened by mega-sales and shopping festivals during the holy month of Ramadan from 12 April to 12 May 2021.
Economic Boost by Non-oil Businesses
Transport, storage, construction, and manufacturing are the fastest-growing non-oil sectors and among the biggest contributors to the overall growth of the UAE economy. Then comes the wholesale and retail trade sector, which accounts for more than 10 per cent of the country’s GDP.
Fortunately, Dubai’s retail market is being fueled by the growing popularity of app-based delivery and conventional services, and shopping in malls and stores. A large number of visitors from the USA, China, Russia, Australia, Argentina, Egypt, Saudi Arabia, Kuwait, and other nations, are carrying out expenses for Expo 2020 preparations and helping the economy further.
Futuristic vision with Expo 2020 Dubai
The UAE is gearing up to welcome the world from 1 October 2021 to 31 March 2022. It is all set to host the MENASA (Middle East, North Africa, and South Asia) countries as well. More than 190 nations have enrolled as participants and each of them will own a pavilion for the first time in the 170-year history of World Expos.
Under the UAE Vision 2021, Expo 2020 is expected to generate an investment windfall of AED 122 billion (USD 33.215 billion). Envisioning success, the UAE economy is predicted to grow by 2.2 per cent in 2022. In the forecast projected till 2025, 2.56 per cent of growth is expected in 2023. Finally, a growth of 2.57 per cent is hoped for in both 2024 and 2025.
Here’s everything you need to know about Expo 2020 Dubai UAE – White Paper link
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