Startups and small-and-medium enterprises (SMEs) remain a key part of the UAE’s plans to build a competitive economy, attract foreign direct investments (FDI), and become a preferred destination for business, according to government officials.
The official spoke at a seminar delving into the latest economic updates in the UAE, which was held by the Abu Dhabi Chamber of Commerce and Industry (ADCCI) in cooperation with the Ministry of Economy, the Pakistan Business Professional Council, and the National Fund for Social Responsibility (CSR UAE).
In his opening speech, the director-general of ADCCI, Mohamed Helal Al Mheiri, said: “SMEs represent 94 percent of the total companies and institutions operating in the country and contribute more than 50 percent to the country’s GDP, making them a key player in building a competitive knowledge-based economy.”
He also said that in 2022, the country is keen on further increasing the competitiveness of the private sector, which can be achieved by implementing innovative strategies targeted at accelerating growth and economic diversification, the state-run news agency, Wam, reported.
“Several economic development indicators point to a strong financial system and strong and resilient national economy,” the director-general added, pointing to a report released by the World Bank that projects the UAE economy to continue in its recovery course in 2022, with growth anticipated to reach 4.7 percent, driven by oil and non-oil sectors.
Resilience of the UAE economy
Mohamed Helal Al Mheiri added that the financial reserves of the UAE continue to exhibit solid growth, according to the Central Bank of the UAE (CBUAE), which reflects the country’s robust banking system and high financial solvency. This also ensures its ability to overcome any sudden shifts in the financial and economic landscape.
He praised several initiatives launched by the UAE Government that consolidated its position as a preferred destination for emerging businesses and startups, as it ranked first among GCC countries, and 22nd globally in attracting FDI, according to UNCTAD.
The economic advisor of the under-secretary’s office at the Ministry of Economy, Dr Al Hassan Jouaouine, shed light on the unique model of the UAE economy over the past 50 years, pointing to the resilience and quick responsiveness of the UAE economy in the face of Covid-19 pandemic and the nation’s 50-year plan transition towards the ”New Economy”.
Dr Jouaouine said that the UAE economy has grown seven times since 1975 and that the country was ranked seventh in the GNI per capita in 2019.
Concerning the resilience and quick responsiveness of the country’s economy, Dr Jouaouine pointed to a range of preventive measures taken by the government to limit the impact of Covid-19 pandemic on the economy by launching a economic stimulus package of AED 388 billion, as well as the implementation of flexible packages within the 33-initiative plan to support key economic sectors and build a more flexible and sustainable economic model.
CSR initiatives in the UAE
The seminar also raised awareness on the importance of corporate social responsibility (CSR) in the UAE.
The director of the CSR UAE Fund, Noha Mohammed Al Harmoudi, said that the Fund plays a pivotal role in showcasing the UAE as an example of CSR.
She added that the CSR UAE Fund, which is a federal authority that sets the framework and governance for Corporate Social Responsibility in the country, manages and directs contributions from the business sector towards National Priority initiatives.
“CSR UAE Fund has metrics in place to rank and reward active businesses in CSR on a country level. Furthermore, it is an enabler for relevant authorities to enhance and regulate socially responsible practices within corporations and business entities,” she explained.
Al Harmoudi added that the mission of the Fund is to establish a platform that encourages the business sector to actively engage in socially responsible practices that lead to a positive economic, social and environmental impact in line with the country’s priorities and sustainable development goals.
In his closing remarks, Dr S Qaiser Anis, President of Pakistan Business Professional Council, praised that achievements of the country over the past 50 years, including its advanced infrastructure, hosting Expo 2020 Dubai, initiating the Barakah Nuclear Energy Plant, the launch of its space agency, and more.
Dr Anis also spoke of foreign direct investment and that the country is ranked first in FDI inflows in west Asian countries, as well as the MENA region.
He also spoke of the positive changes in the country’s financial sector and the establishment of HUB71, saying that the aggregate valuation of Hub71 startups soared to AED 5.87 billion, with close to 1,000 jobs created since its inception in 2019.
He also listed some of the UAE’s Sustainable Development Goals (SDG) including the provision of quality education, enforcing gender equality, and improving clean water and sanitation among others.
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