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OPINION

Hisham Al Gurg

The investment scene in the UAE today

DUBAI, November 23, 2020

By Hisham Al Gurg

The United Arab Emirates (UAE), a country which once heavily relied on fishing and pearl trade, has become an attractive investments hub. Growth in the UAE’s foreign investments sector has been fast accelerating, and its diverse economy and stable political scene continue to make the country an attractive destination for international investors.

Foreign direct investments (FDI) play an important role in the financing of the global economy and is one of the most important tools in financing the national economies of developing countries. There is substantial evidence that FDIs help drive capital and economic growth, as well as enables corporations to innovate and acquire new technologies.

According to the UNCTAD's World Investment Report 2020, the UAE saw an FDI increase by 32% between 2018 and 2019, reaching $13.8 billion. Growing industrial diversification, financial investment deregulations, and the increase in the availability of free-trade zones are all factors that helped drive this success.

Moreover, the UAE’ new overseas remote work scheme has helped shed light on the country’s dynamic and safe lifestyle, as well as its tech-savvy nature. The scheme gives employees the opportunity to work remotely from Dubai, as well as benefit from the zero-income tax. This work programme will entice global professionals to live in Dubai while working-remotely.

Remote-work no longer scares managers and employees post pandemic, where almost all workforce had to quickly adopt a work-from-home or hybrid-work scheme. With this novel and future-facing law in place, the UAE sets the scene and builds attractive foundations for foreign investors and companies that wish to grow their presence in the region.

The UAE continues to set benchmarks in progression, innovation, and digital transformation. Digitally transformed businesses allow their employees to work, collaborate and communicate effortlessly across teams and divisions.

The UAE has always been forward thinking when it comes to digital transformation, as we have seen speedy and accelerating efforts nation-wide for years now. Digital transformation takes companies into the future and abandons those who do not keep up with the development of the industry, technologies, and competitors.

This goes in-line with our vision to make the country a go-to destination for companies and organization operating in different sectors that wish to grow their presence in the region. Locally, there are various sectors growing in the country with FinTech, construction, and e-commerce topping the list.

Today, despite Covid-19, we look at an investment’s scene rich with opportunities for big corporations as well as startups. Our region's entrepreneurial ecosystem is supported by a young and growing consumer market that is full of potential, with high rates of technology adoption. The role of technology is impartial for a successful economy, hence the rising trend of investing in technological advancements in healthcare and finance to name a few.

At SEED Group, we are truly passionate about business in the region. We have a diverse mix of companies that we own, partnered with, and invest in. Upon making astrategic or a financial investment, we also make sure to set the foundation of forming a long-term partnership with the organizations.

Currently, and as the UAE is working on the “Designing the Next 50” project, we plan to support the country by encouraging investors and highlighting the UAE as a cosmopolitan country that favours investors. The UAE is blessed with stable economic and political scenes, making it favourable for foreign investors, and our role is to highlight that and push that notion forward. We continue to seek innovative companies to help them scale their business by having a regional tax-free hub in the vibrant city of Dubai.

About the author

Hisham Al Gurg is CEO of SEED Group, a diversified Group operating in industries including technology, healthcare, tourism & hospitality and real estate.




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