Dubai implements economic transformation program
The authorities of the United Arab Emirates have unveiled a new strategy for transforming the economy, which will make Dubai one of the best financial centers in the world. The project is designed for 10 years and assumes the allocation of investments in the amount of 8.7 trillion dollars.
According to the Sheikh of Dubai, the city will become the fourth-largest financial center in the world. It is expected that the volume of foreign investments in the megapolis will exceed 177 billion dollars. The ten-year program includes the implementation of about a hundred projects that will boost foreign trade. It is expected to reach more than $7 trillion by 2033, compared to about $4 trillion in the previous 10 years.
In addition, annual direct investment is expected to grow almost twice as fast as today – up to $16.6 billion. At the same time, government spending will rise from $142 billion today to $195 billion.The new economic program will stimulate the growth of private-sector investments. If the volume of investments in the last 10 years was 220 billion dollars, the authors of the program hope that in the next decade, it will be 360 billion dollars. In addition, this amount includes the cost of implementing projects in the digital sphere, which is estimated at 36 billion dollars per year. As noted by the authorities of the emirate, the main goal of the program is to increase the volume of the economy of Dubai two times. According to the Sheikh, the city has already attracted over 300 thousand investors from around the world, and their number is expected to grow in the coming years.
One of the steps in the economic transformation was the abolition of the 30% alcohol tax. This decision was dictated by the desire to stimulate the tourism sector and business development.
Some experts were more skeptical about the program’s goals. However, given Dubai’s track record in recent years, they are inclined to believe that most of the goals will be achieved. In addition, the authorities are allocating large sums of money to transform the country and its economy. For some time now, the UAE government has been implementing a strategy to reduce the country’s dependence on energy sales and make it attractive to foreign businesses and investments.
It should be noted that in Dubai 90% of the population are foreign citizens and all conditions are created for their life. In addition, the local authorities fully support the development of business, both local and international. Flexible legislation facilitates the conduct of business, and there are various preferential programs for the registration of companies. Special attention is given to the IT sector. There are modern hubs and incubators for IT professionals to learn, develop skills, and share experiences with colleagues.