Dubai never fails to impress the world in terms of economic development. Its forward-thinking approach has again spiked the interest of tourists and businesses worldwide. According to the latest IMD World Competitiveness Report 2023, the UAE has ranked among the world’s top ten most competitive economies, rising two spots from last year. The Dubai Economic Agenda (D33) goals aim to increase foreign direct investment to an annual average of AED 60 Billion in the coming decade. This will be achieved by increasing the confidence of investors and making improvements in regulatory framework of Dubai. Keep reading to learn what contributed to this development and how you can capture this opportunity to set up a business in Dubai with Next Generation Corporate Services.
Dubai in 2023: A Statistical Overview
Under the visionary guidance of His Highness Sheikh Mohammed bin Rashed, the Dubai Economic Agenda (D33) is set to bring in billions into the economy through more than 100 ongoing projects. These initiatives aim to promote Dubai to the ranks of economically powerful cities worldwide, aspiring to join the likes of New York, London, Shanghai, and Hong Kong as global financial centers.
Top initiatives undertaken by the UAE government:
- Establishing partnerships with regions across the globe through new trade corridors connecting 400 cities, with a primary focus on Africa and South America.
- Launching business startup incubators to support approximately 30 private companies with the aim of nurturing unicorns (valued at over $1 billion).
- Integrating an additional 65,000 Emirati nationals into the workforce and the local economy.
- Introducing Sandbox Dubai to foster a startup culture in the UAE, positioning Dubai as an innovation hub for testing new products and technologies before they enter the mainstream.
- The 100 transformative projects set economic targets of AED 32 trillion (USD 8.7 trillion) and aim to double foreign trade to AED 25 trillion over the next decade.
- Advancing Dubai’s 2040 Urban Master Plan to create a “20-minute city” with new housing developments and reduced commuting times.
Top Business Sectors of Dubai That Contributed to the Economy
The economic growth rate of Dubai in the first quarter of 2023 was more than any developed country worldwide. The GDP in Q1 reached to AED 111.3 billion with 2.8% growth, which is more than the global average for the same period. Dubai has maintained its economic growth with a 4.4% increase since 2022. Following are the top business sectors that contributed to this growth:
- Transportation & Storage: 2023 was a good year for transportation and storage businesses. This sector contributed 48% to the growth, adding AED 15.6 billion. The activities included in this sector are land transport, maritime transport, goods handling, postal services, air transport, and other support services. There also are numerous new Business Setup opportunities in this sector that you can capture with the help of Next Generation Corporate Services.
- Finance & Insurance: This sector contributed 15% to the growth, while trade accounted for 10%, marking a 1.2% increase in Q1 2023 compared to the same period in 2022. The total value addition of the trade sector was approximately AED 25.5 billion, constituting 22.9% of the economy.
- Tourism: Dubai has a strong base of tourists. In the first quarter of 2023, there were 4.67 million visitors from across the globe
- Comparing last year’s Q1, it is an 18% increase. The projections are positive and are showing a record breaking tourists entry this year.
- Food & Accommodation: This industry experienced a growth rate of 5.6%, contributing AED 4.5 billion to the economy and constituting 4.1% of the overall growth in Q1. There is also an increase in new F&B business setups.
- Real Estate: The real estate sector in Dubai is always a hot topic to explore. This Q1 the real estate activities grew by 2.4%, contributing 7.4% to the economy and 6% to the total growth.
Set Up Your Business in the Growing Economy of Dubai with Next Generation Corporate Services
Dubai is continoulsy exceeding all the expectations to become the business powerhouse of the Middle East. The proactive approach of the UAE government with investor-friendly policies has attracted significant foreign investments. These foreign investments contributed to positive growth of Dubai’s economy. The resurgence of Dubai in H1 2023 sends a powerful message to the world. With its strong commitment to progress, Dubai has made a perfect environment for business to grow. This marks the perfect time to set up your business in Dubai with the help of Next Generation Corporate Services. We are expert in providing the Best Business Setup Services in Dubai. With us you get the complete package of Professional Corporate Services and PRO services in Dubai. Contact us today to capture this perfect opportunity to start your business in Dubai.