Several knowledgeable economists are of the opinion that the economic growth in UAE is sure to accelerate at a quite high percentage in the New Year. This is mainly because; the government of UAE has taken several great steps to expand the non-oil revenue sector of the economy. The country’s Central Bank expects that the economy of UAE is going to accelerate by 4.2% in 2019.
The Approval Of The Law Related To Foreign Direct Investment:
The government finally gives approval to the law of FDI which is going to boost investment flow in the country by almost 20% more as compared to the previous year. The economy minister expects the foreign investment to rise up to $11.5 billion in 2019. The government has also planned to give approval to the low-cost insurance policies for employees and offer long-term visas ranging to 10years. These incentives are sure to attract more investors and retain talents in UAE.
Why Has Government Focused More On The Non-Oil Sector?
About 70% or even more of the GDP of UAE comes from the contributions of the non-oil sectors of the economy. Thus, the government this year has laid quite a lot of stress in benefitting the entrepreneurs in this area. The driving points for the growth of GDP in the non-oil sectors of UAE would be private consumption, investments made mostly in the expenditure sectors and services coming from the production parts. So, for company formation, this year is great.
Contributing Factors For GDP Growth In 2019:
The fiscal policies have got expanded both at the Emirate and Federal levels. The upcoming Expo 2020 is sure to improve the sectors of tourism and get an enhanced flow of FDI in the country. The growth of free zone business in Dubai is also predicted to increase in 2019. These factors contribute a great deal in enhancing the growth of GDP from the non-oil sectors.
Specific Measures Coming From The Individual Emirates:
Every Emirate is taking individual steps to initiate more business and company formation in their areas. Abu Dhabi and Dubai plan to exempt companies from the payment of administration fines so that there is more economic development and business growth. There is also a reduction in municipality fees and aviation in Dubai which is an initiative to create more jobs in the area.
The government has also come up with several rewarding projects and plans to support the growth of medium and small-scale businesses in UAE. So, grab the opportunity and make your dream of setting up free zone business in Dubai get true colours this year. Consult with the team at Dubai Business Setup for best business setup services and complete assistance.