Page 108 - MOE ENGLISH PR REPORT - JULY 2024

instance, over the past three years, the UAE amended and updated more than 13 laws in many
economic sectors, particularly the new economy. This is coupled with significant expansion of non-
oil activities and sectors, particularly new, sustainable, innovative and knowledge-based sectors.
As a result, more than 788,000 companies operate in the country's markets as of the end of 2023,
and the number of SMEs reached about 557,000 by the end of 2022.

In 2023, the economy grew by 3.6 per cent in real prices. Although this appears to be somewhat
modest compared to the 7.9 per cent growth rate for 2022, it is a robust growth against the
backdrop of global and regional uncertainty and is higher than the rates registered by the global
economy and the rest of the GCC countries. These results confirm that we are moving steadily
towards achieving the national goal of the ‘We the UAE 2031’ vision to raise the gross domestic
product (GDP) to reach Dh3 trillion.

Non-oil economy is a major contributor to the UAE’s GDP. How do you see the country’s
economic diversification drive in the next five years?

Currently, 74 per cent of the UAE’s national economy is non-oil-based, a historic first for the
country. The non-oil GDP grew by a staggering 6.2 per cent last year. Over the past decades, we
have significantly expanded non-oil activities and sectors, particularly new, sustainable, innovative
and knowledge-based sectors. We are working diligently to position these sectors at the forefront of
the next phase of growth, which will consolidate the UAE’s status as a hub for the new economy.

Moreover, in the next phase, we will focus on accelerating the green transition and developing
economic clusters for various sectors — including agritech, food processing — spread across
different emirates and regions within the country.

How do you see the role of the private sector in promoting the economy, especially in the wake
of public-private partnerships in healthcare, education, and infrastructure development
projects?
The private sector has always been an important partner in the country’s economic growth and
employment creation and continues to be a key pillar in the new economic and investment
landscape. It is at the heart of global changes and challenges and has an edge when it comes to
harnessing technology and pioneering innovation.

The sector has the potential to find solutions to today’s most pressing challenges and therefore, we
are keen to support them and benefit from their expertise, especially in the development of new
economy sectors. The UAE government remains committed to developing and strengthening
policies and launching initiatives aimed at fostering investor confidence, including legal
frameworks, financial incentives, and measures to protect intellectual property.

What steps or policies on cards to facilitate small investors and SMEs?

Under the guidance of the wise leadership, the UAE has placed significant emphasis on advancing
the SMEs sector, considering it as a key driver of national economic growth. Today, SMEs account
for 95 per cent of all companies in the country and employ 86 per cent of the private sector’s
workforce. Therefore, the UAE government ensures ample opportunities and resources for nurturing
this vital sector, which now has a direct and effective impact on the UAE’s economic development.

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