The UAE’s growing ‘digital economy’ is expected to create many high-paying jobs while producing larger revenue streams, according to the Khalifa Fund for Enterprise Development’s Future Market Trends Report 2022.
As investments in artificial intelligence (AI) increases, more employment opportunities will appear in the sector, considerably boosting the UAE’s economy.
The report highlights the UAE’s economic ecosystem and the current consumer behaviour patterns, while also giving insights into how the UAE has made a fast recovery from the pandemic’s economic implications, according to the state-run news agency Wam reported.
The detailed report also addresses the country’s efforts in building a strong knowledge-based economy, and the drastic transformations in investment and economic behaviour in the short and long run as a result of digitalisation.
Post-pandemic GDP to reflect growth of UAE economy
The Future Market Trends Report 2022 predicts post-Covid-19 GDP growth in the UAE as a result of governmental procedures which have been adopted to cushion the pandemic’s impact.
The report highlights the UAE Government’s efforts to counter the economic impact of Covid-19, including the stimulus totalling approximately 18 percent of the UAE’s GDP.
The majority of the $27.22 billion (AED100 billion) in financial help offered so far have been allocated for small and medium-sized enterprises (SMEs) and consumers.
In addition, the UAE government has also revealed the allocation of $4.35 billion (AED16 billion) for all 7 emirates.
Moreover, the report also makes references to digital transformation, and how many consumer behaviours changed, which may have permanently altered the relationship between technology and well-being as a lifestyle.
The advisor to the chairman at the Abu Dhabi Department of Economic Development, Alia Al Mazrouei (above), said: “The Khalifa Fund has always focused on a diverse array of tactics to guide entrepreneurs and support the UAE economy. The Future Market Trends Report 2022 is an effort to accomplish that same goal. I am confident that it will help businesses across the country in devising optimal operational strategies, which deliver improved services, and keep their target markets fully satisfied.”
She added: “While health and safety will remain the primary economic drivers for the foreseeable future, entrepreneurs and business owners should continue researching their market and target customers’ needs to stay relevant. For businesses, it is important to respond proactively as It will help them maneuver within a rapidly changing market which is consistently growing.”
According to the report, the pandemic, while having negative economic impacts on the global economy, has also revealed new opportunities and some positive impacts as it has helped escalate technological adaptations which have led to reducing development time span in priority sectors.
This has triggered consumers’ tendencies to adopt a behaviour that is increasingly focused on well-being and the emergence of new technological healthy lifestyle trends.
The report also showed that flexibility and cost reduction have become the criteria to drive the future of the business, anticipating the governmental continuous support in developing and empowering entrepreneurship within the youth in the near future.
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