As we talked about in one of our previous blogs, the UAE’s non-oil sector saw a substantial rise in the last quarter of 2021. Further to this increase, it was found that in March this year, the emirate’s non-oil private sector economy jumped to its strongest score in the last 33 months. This noteworthy rise has been attributed to a number of factors. In this article, we’ll have a look at the top five factors that led to a stronger non-oil economy in the UAE.
One of the main reasons for business activity in the UAE picking up in the past few months is the ease of pandemic-related restrictions. As the UAE’s response to the pandemic has been one of the best in the world, it infused great confidence among businesses and opened new avenues for a bounceback from the effects of the slowdown it faced. The uplift that the business sentiment across the country experienced was largely due to the pandemic-induced restrictions that have been gradually and tactically lifted off in the previous months – all while ensuring that the contagion is dealt with wisely. This has not only benefited the economy in the country but has also positioned it as an exemplary destination for its responsiveness to a challenge of global magnitude.
The ease in pandemic-related restrictions has led to an apparent rise in confidence in the travel and tourism sector. The past few months saw a rise in the number of people visiting the UAE and a lot of international travel that boosted the sector further. The country was deemed a safe place to travel for work and leisure, making it possible for people from across the globe to come and stay in the country for a holiday or for business purposes. A robust travel and tourism sector is therefore the reason why the country’s non-oil economy outperformed all expectations and predictions.
The successful organisation of the Dubai Expo 2020 is another strong reason that led to an awe-inspiring performance by the non-oil sector in the past few months. People from over 192 countries visiting the emirate and participating in the Expo meant a surge in business activity in the past 6 months. The world’s greatest show was bound to have such an impact as it brought to the fore some of the most cutting-edge innovations, products, and services from across sectors and countries under one roof.
Another reason for the good performance of the non-oil sector in the country is the promising real estate. Together, laws and regulations allowing the easy purchase of property, coupled with a decrease in travel-related restrictions due to the pandemic, led to stronger real estate. This translated into transactions worth millions and also promoted the country as one of the best places in the world to invest. The results were in line with the overarching UAE goals of making it a preferred place to live and work.
Apart from the aforesaid, there were other factors that made the UAE stand out – ranging from the new labour law regulations to the change of the workweek from Monday to Friday and flexible work arrangements – all of which imparted the much-needed push to the non-oil economy and resulted in a performance that indicates a healthy and rebounding economy.
What other factors do you think propelled the non-oil sectors? Share it with us, we’d love to get a conversation started.
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