The economy of the United Arab Emirates is the second-largest economy in the Middle East after Saudi Arabia with the scope of even growing more. The country has been trying to diversify the economy as most of the economy is dependent on the revenue from the petroleum and hydrocarbon sector.
Previous to the worldwide pandemic the growth of the economy of the United Arab Emirates in the year 2020 was expected to be at a rate of 3%. Even now the economy is coping with the aftermath of the worldwide pandemic and the economy of the country as well as the whole world is slowly opening up to new possibilities and growth.
The country has tried to focus on diverse sectors such as Tourism, Information Technology, Media etc. to generate more revenue and diversify the business activities of the country. This will in turn increase the share of the Gross Domestic Product (GDP) of the country.
Growth and Development of the United Arab Emirates
There are many factors due to which there is a huge scope for the Financial Development and growth of the country. These factors are given below:
- Digitalization of the Economy
The Digitalization of the various activities has affected the workings of the businesses and the fields of Accounting Services and other related services are not untouched by it. This digitalization of the economy in the United Arb Emirates helps in creating new opportunities for the businesses which are present in the country as well as the businesses which are looking to set up a business in the UAE.
The economy of the UAE is now implementing a fourth Industrial Revolution which will focus more on the development of the country and will also play a major role in enhancing the economic security of the country by adopting blockchain technology and various advancements in technology.
- Growth of Start-ups
There has been a significant increase in the start-up companies which have been coming into the country and which are already available in the country. the increasing advancements in technology have made the United Arab Emirates a breeding ground for various start-ups.
There will be an increasing demand for start-ups now due to the prevailing trend of working from home. These start-ups have a liberalised mindset and are more focused on getting the maximum efficiency of a business.
- Easy access to Manpower
People from all over the world come to the United Arab Emirates in search of better opportunities. This is the reason the businesses in the region have access to well-read and experienced professionals. Also, this place offers various benefits to people which hire a foreign employee with high qualifications.
- An increasing number of Freelancers
The job market presently focuses more on freelancers and start-ups. In recent times we have seen huge changes in the worldwide job markets and freelancers have the ability to adapt quickly to the changing scenarios in the business environment. This is why there is a huge increase in the number of freelancers and start-ups in the country.
The government of the UAE has been taking steps to provide more and better opportunities for the freelancers. To support this initiative, “GoFreelance” was initiated by TECOM Investments which worked towards increasing the number of freelancers in the Dubai Academic City and the Dubai Knowledge Park. Freelancers provide a better chance of employment of the people in the business which in turn increase the Gross Domestic Product (GDP) of the country.
These are some of the reasons due to which the scope of the development of the Middle East is high. The above-mentioned factors will help in the financial development of the economy of the country and will also allow the growth of both the country as well as the business.
Now to get a better understanding of the financial scenario of the UAE and to understand how it will affect your business, it is suggested that you should take help of a reputed professional who will understand everything and then explain it to you in simple and logical terms. JAXA Chartered Accountants is one such firm which will provide complete information about the current financial scenario.
To know more about the various other services provided by JAXA, Contact Us. We will be happy to help.