With the UAE joining the groupBrix“For emerging economies since the beginning of the year, this accession can be understood as a strategic step aimed at strengthening the country’s position as a major player in the multipolar global economy, and representing a strong addition that strengthens the bloc and its main goals.
And developed The UAE Over the past decades, there has been an open economic model that relies on encouraging investment through a safe and stable investment environment, and this is evident in investment and legislative incentives that facilitate the work of the private sector and open doors to foreign investors.
Despite being one of the largest oil producers, the UAE has adopted a strategy of diversifying the economy away from dependence on oil revenues, and sectors such as trade, tourism, and technology have begun to play major roles in supporting economic growth, thus enhancing the country’s economic growth expectations.
The UAE’s accession to BRICS came as a qualitative step to enhance cooperation with the group’s member states, especially in the fields of trade, investment and technology. Through its membership in this bloc, the UAE seeks to expand the scope of its economic influence and enhance its position as a country with soft economic power globally, according to analysts, who stressed in separate statements to the “Eqtesad Sky News Arabia” website that the country’s involvement within the BRICS bloc reflects its ambition to be Part of the multipolar economic system, and expanding its role as a reliable partner in the international economic scene. According to expert opinions, the UAE constitutes a qualitative addition to the bloc thanks to its economic stability and ability to attract investments.
This comes at a time when you embrace The UAE A long-term economic vision that goes beyond the current stage and relies on ambitious plans for decades to come. By developing its infrastructure and expanding its projects in the fields of artificial intelligence and renewable energy, the country seeks to strengthen its position as a global economic power.
Economic strategy
The Executive Director of the Watani Al Emarat Foundation, Dirar Belhoul Al Falasi, said in exclusive statements to “Iqtisad Sky News Arabia” website:
- The UAE has succeeded in adopting a “very open” economy model.
- This model is based on the principles of creating a safe and stable investment environment.
- This includes providing attractive investment and tax incentives (for investors), in addition to legislation and regulations that facilitate the work of companies and the private sector.
He added: “Over the past decades, the UAE has sought to increase the competitiveness of the local economy, through a number of tools, including: infrastructure development, and in light of integrated government strategies that contribute to increasing the contribution of non-oil sectors (diversifying the economy), in addition to working To attract foreign capital.
One of the important steps in this direction was the amendment of the federal law regarding foreign companies in 2020, allowing foreign investors to establish companies and own them 100 percent, and not requiring foreign companies wishing to establish branches within the country to have an Emirati agent.
Official data, which Al Falasi cited during his speech, indicate that the country’s real gross domestic product reached 430 billion dirhams (about 117.1 billion dollars) during the first quarter of this year, recording a remarkable growth of 3.4 percent compared to the same period in 2023, while Non-oil GDP achieved growth of 4 percent during the first quarter of 2024 compared to the same period last year.
This month, the World Bank announced positive forecasts for the UAE economy, expecting real GDP to grow by 3.3 percent in 2024, to accelerate significantly to 4.1 percent next year, 2025.
Speaking about the state’s strategy to support the shift towards a new economic model based on diversity and innovation, Al Falasi adds:
- The UAE is adopting an innovative economic model that serves its future vision.
- The country follows effective national economic strategies, focusing on promoting openness and partnerships, while expanding areas of economic diversification.
- The positive results achieved for the national economy enhance the achievement of the economic goals of the “We are the Emirates 2031” vision, including increasing the UAE’s gross domestic product to 3 trillion dirhams by the next decade.
Foreign relations…and the BRICS bloc
Regarding the economic relations of the UAE, the economic expert, Jamal bin Saif Al Jarwan (former Secretary-General of the Emirates Council for Foreign Investors), says in special statements to the “Eqtisad Sky News Arabia” website:
- The United Arab Emirates is always looking forward to qualitative and influential alliances on the global stage.
- The UAE, with its wise leadership, has reached a prominent and influential economic and political position on the global scene, and its opinion is taken into account in the process of developing work and economic cooperation in the world.
- The UAE has a prominent position from east to west of the world and is considered an influential player in the region.
- Through its membership as a member of BRICS, the country seeks to strengthen its economic and political relations with member states, in addition to expanding the scope of cooperation in vital areas such as trade, investment and technology.
- The UAE is considered an important commercial center in the region, and its joining BRICS reflects its ambitions to be part of the multipolar global economic system.
He adds: “The main goal of the UAE’s inclusion in the distinguished BRICS system is to actually contribute to the process of developing investment, commercial, technological and economic work on the local, regional and global scene.”
In August 2023, South African President Cyril Ramaphosa announced the invitation of 6 new countries to join the BRICS group of emerging economies, namely (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE) to become members of BRICS since January 2024 (Argentina later withdrew after the victory of President Javier Miley). ).
Russia chairs the BRICS group this year, under the slogan “Strengthening multilateralism for equitable global development and security.”
The BRICS group is a joint association between several countries that was established in 2006 BrazilRussia, andIndiaandChinaSouth Africa joined it in 2011, while the United Arab Emirates, Saudi Arabia, Egypt, Ethiopia, and Iran have joined BRICS since the beginning of 2024.
Powerful addition
Financial analyst and member of the National Advisory Board of the CISI Institute, Waddah Al-Taha, tells the “Eqtisad Sky News Arabia” website: “I believe that the UAE represents a real economic addition to the BRICS bloc, unlike some other countries that were added for political reasons,” as he described it.
He added: “The choice of the UAE is purely economic; it enjoys great economic stability and is an important attraction for foreign investments, in addition to being the largest country that attracts foreign investments in the region. The stability of the currency as a result of linking the dirham to the dollar enhances the strength of the UAE economy.”
Al-Taha stresses that the UAE is considered one of the countries with global soft power, and its voice is heard on the international scene, which makes the Emirati passport strong. As a result of extensive diplomatic relations with most countries of the world.
“There is also important economic diversification in the Emirates, as it has succeeded in reducing the contribution of the oil sector to the gross domestic product. There are also great opportunities for growth in the tourism and real estate sectors,” according to Al-Taha, who points to expectations International Monetary Fund The UAE economy will achieve 4 percent growth in 2024, with growth expected to increase to 4.1 percent in 2025.
He concludes his statements to “Iqtisad Sky News Arabia” website by saying: The UAE represents a qualitative addition to BRICS, as it plays a prominent role and will be a major player in this bloc. An example of this is the use of the UAE dirham in some commercial transactions between India and Russia in the oil trade, showing that the UAE enjoys global respect and has one of the largest sovereign funds in the world.
Economic power
The General Manager of Truth Economic and Administrative Consulting Company, Reda Muslim, indicates in exclusive statements to the “Iqtisad Sky News Arabia” website that:
- We must not look at the UAE only as an economic power, but as a complete entity and an influential country (in various files and sectors).
- The first thing to take into consideration is its geographical location and strong infrastructure.
- Part of its strength stems from its infrastructure, which is characterized by superior quality, high modernity, and diversity of capabilities. When we take a look at airports, such as Abu Dhabi International Airport, we find that it is a huge global facility, as well as Dubai International Airport, which is one of the largest airports that provides flights. 24-hour air traffic to any destination.
- In addition, the ports, such as Jebel Ali Port and Zayed Port for example, are very strong facilities. The Etihad Train, which transports passengers and raw materials, is considered one of the most modern means of transportation.
- The UAE is always focused on the future, and is making plans that extend for the next hundred years.
He continues: “Also with regard to energy, it is one of the largest countries in the world in terms of oil reserves, as it produces about 3 million barrels per day, and it has refineries,” explaining that the economic model of Dubai differs from Abu Dhabi. In Abu Dhabi, the economy depends largely on oil, while Dubai depends on trade, tourism and services, as it is characterized by great facilities in the areas of business… Abu Dhabi is a heavy and strong emirate thanks to its oil.
Abu Dhabi also has the third largest sovereign fund in the world with more than one trillion US dollars, which gives it a strong position. It also seeks to attract human minds from various parts of the world, and is working to develop and localize artificial intelligence, and this enhances the UAE’s position as an economic power.
It is noteworthy that the Emirate of Abu Dhabi topped the cities of the world, in a new global classification, published this month, for cities according to the capital managed by its sovereign wealth funds, issued by the “Global SWF” Foundation. The results showed that the capital of the UAE, Abu Dhabi, is the leading city in managing most of the capital of sovereign wealth funds in the world, thanks to assets worth $1.7 trillion managed by various sovereign wealth funds based in the capital of the UAE.