The UAE’s economy has proven to be resilient and adaptable, with efforts centered on economic diversification, infrastructure development, innovation, and attracting foreign investment. These initiatives seek to establish a sustainable and knowledge-based economy, reduce reliance on oil, and position the UAE as a global business and tourism destination. It is known for its dynamic economy, which has experienced significant growth and diversification over the years.
“The UAE’s GDP in 2022 at constant prices was AED1.62 trillion ($440 billion), a positive growth of 7.9%, while at current prices it was AED1.86 trillion ($506 billion), an increase of more than AED337 billion ($91.7 billion) compared to 2021, a growth of 22.1%.”
The Minister of Economy, Abdullah bin Touq Al Marri, mentioned that the preliminary estimates for 2022 GDP reaffirm the country’s economic performance and achievement of positive growth rates that exceeded expectations. He also stated that the UAE is working to create an innovative economic model that will serve its long-term vision by implementing flexible economic policies that rely on speed and accuracy in responding to global changes, as well as promoting economic strategies and forward-looking economic plans based on economic expansion.
The results and figures achieved, according to Hanan Ahli, Director of the UAE’s Federal Competitiveness and Statistics Center, emphasize the UAE economy’s continuous growth, whether at the general level or at the level of the main economic sectors and activities, which contributes to strengthening the economic diversification policy by increasing the relative importance of non-oil activities in the national economy.
“Despite the annual increase in population, the UAE’s GDP per capita has grown at an unprecedented rate of 24.7% over the last six years,” she added. “The 2022 GDP per capita grew by 21.1% compared to 2021.”
The UAE plays a significant role in promoting global trade.
In the meantime, the World Trade Organization (WTO) announced in April that the UAE’s trade in goods with the rest of the world would reach $1.02 trillion in 2022, as the share of both exports and imports increased due to higher crude oil prices. Imports accounted for 22% of the total, while exports increased by 41%.
According to the World Trade Organization’s Global Trade Outlook and Statistics report, exports will increase by 41% to $599 billion in 2022, accounting for 2.4 percent of global merchandise exports, while imports will increase by 1.7 percent to $425 billion.
The UAE is at present discussing similar agreements with additional strategic markets on a regional and global scale. Costa Rica, Thailand, Malaysia, and Vietnam are among the nations involved.
The United Arab Emirates (UAE) has signed five Comprehensive Economic Partnership Agreements (CEPAs) with India, Israel, Indonesia, Turkey, and Cambodia, the first two of which have already taken effect. The CEPA trade agreements aim to reduce or eliminate unnecessary trade barriers, facilitate investments, increase market access for service exports, and provide more opportunities for businesses to form new partnerships.
The UAE plans to focus on growing non-oil exports and the tourism industry in order to double the size of its economy to Dh3 trillion by 2031.
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