Currently, the United Arab Emirates is the fourth-best economy in all of North Africa and the Middle East (MENA). In addition, since 2021 it has had a very high Gross Domestic Product (GDP) that continues to grow. All this is thanks to the famous industries in the UAE and sectors that are booming. These industries include oil, gas, construction, and healthcare.
In this article, we will illustrate to you the main industries in the UAE that have been part of and supported the growth of the country’s economy. This country has become one of the most attractive and profitable destinations for businessmen in the world. So that you can better understand the subject, we will give you a tour of the most important industries that exist in this country. Thus, you can decide to be part of this market.
1. Learn about the oil and gas industry in the UAE
In the list of industries in UAE, the first one to be mentioned is the oil and gas industry. This sector is considered the most important in the UAE since it represents 34% of the total GDP. The International Trade Administration says the United Arab Emirates produces approximately 3.2 million barrels of crude oil per day. Thanks to this, it is among the top 10 oil-producing countries in the world.
Different factors have contributed to the growth of oil and gas investments in the UAE. Among them, is the low corporate tax on income, striking and developed infrastructure, and access to highly advanced technology. In addition, in this country, monetary restrictions are absent.
On the other hand, currently, multinational oil companies have been investing heavily in this sector. In addition, the government has made significant investments in research and development (R&D). Thus, growth over time in this industry can be guaranteed.
The economy in the UAE has been dominated by the oil and gas sectors. But, the country has set out to become the first Arab state with the goal of net zero emissions by 2050.
1.1 Market Leading Company, Abu Dhabi National Oil Company (ADNOC)
ADNOC is a leading company in the world in the oil and gas sector. It is characterized because it operates in all aspects of the industry. This industry aims to reach the maximum sustainable production capacity of 5 million barrels per day in the year 2030.
On the other hand, ADNOC not only works in the oil sector, but it also focuses on diversifying its energy portfolio using renewable energy sources. In addition, this company has entered into a business partnership with Mubadala Investment Company and Abu Dhabi Energy Company; to facilitate investment in sustainable and clean energy.
2. Do you know how the construction industry works in this country?
If you want to start in the construction industry, you should know that it is one of the most lucrative in the MENA region. In addition, it plays a very important role in the economic growth of the country. Thus, in recent years this sector has grown steadily. The construction industry in Dubai and across the UAE is forecast to grow by around 3% from 2023 to 2026.
Construction growth in the UAE is fueled by ambitious development projects. Among them are mega projects like the Palm Jumeirah, the Abu Dhabi airport, the Burj Khalifa, and other flagship projects. The industry also includes residential housing projects that are responsible for meeting the demand of local and foreign investors.
Part of the factors that helped the construction industry grow was a big boost from the government. In this way, the impulse helped the development of the infrastructure and a large amount of highly qualified labor. However, supply chain disruptions, rising labor costs, and raw material shortages are major challenges for the industry.
Different individual sectors will be found in the construction industry. Among them is residential, commercial, industrial, and infrastructure construction. In addition, there is the institutional construction of energy and public services.
3. Do you want to know more information about the real estate industry? Continue reading
One of the top companies in UAE is those belonging to the real estate industry. It is considered one of the most dynamic sectors and has experienced great growth in recent years. Currently, the country’s government has created different initiatives to promote investment in this sector. Thanks to this, many foreign investors see this possibility as very appealing. In addition, they may be applicants for a Dubai investor visa.
As a high demand from investors and buyers has been witnessed; property prices have increased significantly. Especially, in cities like Abu Dhabi and Dubai. In addition, many real estate projects contribute to economic activity in the UAE. For instance, residences, offices, hotels, shopping centers, and commercial complexes.
3.1 Commercial and residential real estate market in Dubai
The real estate market in Dubai, especially the residential sector, has grown significantly. This is despite global uncertainties and challenges. The reason is said to be that this city has a reputation for competitive prices and being a haven; compared to other relevant and well-known cities in the world.
In addition, the developers have a promising future with 27,000 units under construction; which will be distributed in the coming years.
3.2 Commercial and residential real estate market in Abu Dhabi
Currently, many entrepreneurs have decided to open their businesses in Abu Dhabi; thanks to the rapid growth that the real estate market has presented.
According to a study carried out, it was estimated that the residential sales market is experiencing high demand. This is in villa projects that are in plans and finished. Additionally, most villa communities have experienced a significant increase in demand in recent months.
4. What you should know about the tourism industry in the UAE?
The UAE is considered a very attractive and important tourist destination. This is because of the beautiful beaches, luxurious resorts and hotels, cultural attractions, and exciting theme parks. This is a country that has seen a lot of influx of tourists in recent years; Thus being included in the best industries in the UAE.
It is estimated that in the year 2022 around 12.82 million visitors came to Dubai and other major emirates. This was a significant increase compared to 2021, which was 7.28 million foreign visitors 2021.
This growth is because there has been an increase in investments in infrastructures related to tourism. For instance, transportation systems and airports. This sector has been supporting more than 300 airlines that perform functions to various destinations all over the world. In addition, there are different companies based in Dubai that have tour operators; who is in charge of offering tours throughout the UAE and to other countries in the region.
4.1 UAE Tourism Strategy 2031
Another important industry in the UAE is the tourism sector. Currently, the Tourism Strategy of the UAE 2031 has been implemented, which is part of the “Projects of the 50”. This is an important initiative implemented by the government to boost the country’s tourism sector. In addition, they want to consolidate being a top travel destination in the world.
This strategy aims to increase the contribution of the tourism sector to GDP to AED 450 billion; expecting an annual increase of AED 27 billion, and attracting AED 100 billion in additional tourism investment from foreign investors. This is to attract approximately 40 million guests to hotels.
This strategy is intended to drive significant growth in the industry. Foreign investors who wish to open their company; should know that they have to have a tourism license. In order to meet the UAE Tourism Strategy 2031, there are four key areas that are intended to be strengthened.
- Renew specialized tourism products.
- Build new projects with tourism capabilities.
- Promote foreign investment.
- Strengthen the tourist identity of the UAE.
In summary, this is a holistic approach that was created to develop the tourism industry. Furthermore, it was designed to create a competitive and sustainable environment for this sector in the UAE; thus, you can stay current in the industry for years to come.
5. More information about the logistics and transport industry in the UAE
You find that the logistics and transportation industry is divided into several businesses. These businesses range from cargo and air transportation companies to ground transportation providers and port operators. This sector has had very significant growth thanks to a greater demand for international trade and the movement of merchandise in the region.
Dubai is the best center for doing business and that is reflected in the great projections for the future; in which it is estimated that by 2026 the logistics market of the UAE exceeds 16,000 million dollars. Furthermore, thanks to government support for the development of the logistics and transport industries in the UAE, these are increasing.
Thanks to the ports that are being developed as transshipment centers between Asia and Europe; It is observed how the country has become a very fundamental center for different global shipping operations. On the other hand, logistics service providers are increasingly relying on technology such as blockchain, AI, IoT, and automated equipment to improve their services.
6. What should you know about the industries that offer financial services in this country?
The industries in Dubai that offer financial services are driven by many things. Among them is the increase in foreign and national investment. In this way, we can see how the UAE financial services industry has experienced tremendous growth in recent years. Thanks to this, you realize the benefits of doing business in Dubai.
It can be seen that the banking sector is one of the most essential components of this industry. You found more than 50 banks (including, international banks); that are in charge of offering services and products to their local and international clients. In addition, there are numerous insurance companies to be found, providing coverage for everything from health to life. It is important to keep in mind the new rules for forming a company in the UAE.
7. Learn more about the minority industry in this country
Finally, with the industries in the UAE, we will talk a little about the retail industry in the UAE. This has also shown high growth. Especially since consumers have shifted their focus from price to product quality; thus increasing their spending levels.
7.1 Electronic commerce
Thanks to the rapid growth in the technology industry; Consumer demand for shopping online has increased greatly. Thanks to this, electronic commerce has shown significant growth. Many foreigners have come to the country to apply for an e-commerce license to contribute to the market.
8. How can Connect Middle East help you establish your company or industry in this great country?
Previously, we gave you an overview of many of the industries in the UAE. You can notice that each one has qualities that can be attractive. If you want to contribute to any of these sectors by creating your company, do not hesitate to contact Connect Middle East. We offer you professional advice so that you can be successful in this work. To contact us is a very simple process, you just have to call us at +971 43 316 688 or write to firstname.lastname@example.org.