Evolution of the Business Sector in the UAE over the Years
It is worth noting that the economy of the United Arab Emirates (UAE) is ranked the second largest in the Middle East, which is after Saudi Arabia. It had a GDP of $403.2 billion by 2014. The economy has gone through a series of change to make it what is today. What does that tell you? You should consider finding a business for sale in UAE. The following is a summary of the evolution of the economy of UAE.
At this time, the emirates were each responsible for their economy. What does that mean? The backbone of the economy at this point was fishing, seafaring, and pearl diving. It was only until the Japanese challenged the UAE to pearl diving. Luckily, the UAE also learn of the available commercial oil quantities. The revenue brought about by oil was then used to finance developmental projects in the UAE.
During this time, the head of state saw a need to diversify the economy and not only focus on petroleum. UAE economy was driven towards shipping, logistics, and trade. It saw the establishment of Port Rashid, Dubai International Airport and Jebel Ali ports to facilitate the new face of trade in the region. A significant change was witnessed, and the economy got a considerable contribution from shipping, logistics, and transport.
Around this time, UAE decided to set foot in the real estate too. However, this was faced with a big challenge, which is the global financial crisis. The real estate industry saw stringent regulations. The industry continues to grow regardless of the tight regulations.
UAE found ways to sustain their economy by finding new methods of generating power. That was with the generation of solar energy. It saw the development of renewable energy strategies in the UAE. It helped a great deal to sustain UAEs budget which was focused on growth. UAE also ventured into small-scale manufacturing. It had a significant impact on the economic development of the region. The governments went further ahead to support entrepreneurial developments like the automotive industries.
The governments continue to invest in education which had accounted for about 22.5% of the budget. This training saw a great development. It contributed significantly to UAEs efforts to venture into other industries. The rise in a skilled population saw the growth of other sectors as from 2014.
By 2014, UAE had been able to diversify its economy and not only rely on oil trade. More effort was directed to labour-intensive activities as opposed to the energy industry. More focus was put in technology, skilled labor and knowledge. The governments in the UAE endorsed tourism, re-export commerce, aviation, and telecommunications.
The UAE is not stopping at this. It is looking to pursue more innovation, invest in research, technology, and science to find more ways of enriching the economy. It is important also to note that tourism has been contributing significantly to the economy up to date. If you are looking to buy a business in the UAE, you might want to get one that it is tourism based. It is a gold mine!