UAE’s Non-Oil Industry Has Capacity to Double GDP
The United Arab Emirates (UAE) has unveiled a plan to double its gross domestic product (GDP) to 3 trillion dirhams ($820 billion) by 2031. The ‘We The UAE 2031’ plan, announced by the country’s Vice President, Sheikh Mohammed bin Rashid, at the UAE Annual Government meetings in Abu Dhabi, focuses on social, economic, investment and development aspects. The goal of the plan is to drive up the country’s non-oil exports and tourism sector to raise GDP from its current level of 1.49 trillion dirhams.
To achieve this objective, targets have been set to increase non-oil exports to 800 billion dirhams and foreign trade to 4 trillion dirhams. The tourism sector’s contribution to GDP is also expected to grow to 450 billion dirhams. Sheikh Mohammed said that ‘We The UAE 2031’ will shape the progress of the country towards a more accomplished and developed future, where all entities and institutions will cooperate within a unified ecosystem.
The plan is based on four main pillars covering all sectors and fields: the economy, society, ecosystem, and diplomacy. The society pillar aims to place the UAE among the top 10 countries in the Human Development Index and to have its cities ranked among the 10 best in the world. The Forward Economy pillar aims to create and develop policies and plans that contribute to achieving high economic growth in all sectors. It also seeks to accelerate the pace of transformation in the energy sector and rely on alternative sources of energy to enhance the country’s efforts in the green economy.
The Forward Diplomacy pillar aims to strengthen the UAE’s foreign relations with countries worldwide, enhance its international presence, cooperation, and friendship, and encourage positive dialogue. The fourth pillar, Forward Ecosystem, focuses on infrastructure and its development according to the latest technological methods. This pillar includes the development of digital infrastructure.
Sheikh Mohammed also stated that the UAE would maintain its position as an economic destination, and economic prosperity, social well-being, and development of human capital would be the main pillars of the next 50 years. ‘We The UAE 2031’ represents the government’s vision for the next decade as they embark on a national path towards new achievements under the leadership of Mohamed bin Zayed.
The plan’s success is critical for the UAE, as it aims to diversify away from oil and double its economy’s size in just a decade. It comes at a time when the Gulf state is rebounding from the Covid-19 pandemic, which has had a significant impact on its economy. Higher energy prices supported economic growth across the Gulf region’s oil exporters last year, but a slowdown is forecast for this year with a more uncertain oil price outlook and a challenging global macroeconomic environment.
The UAE’s commitment to diversifying its economy is evident in its focus on non-oil sectors like tourism and non-oil exports. By promoting growth in these sectors, the UAE hopes to reduce its reliance on oil and create a more balanced and sustainable economy. The plan’s emphasis on digital infrastructure and alternative sources of energy also reflects the UAE’s desire to lead the way in green technologies and position itself as a hub for innovation and development.
The ‘We The UAE 2031’ plan outlines the UAE’s ambitious vision to double its GDP and diversify its economy away from oil by focusing on non-oil sectors like tourism and non-oil exports. The plan’s success will depend on the country’s ability to implement it effectively and overcome the challenges posed by a challenging global macroeconomic environment. Nonetheless, the plan represents a significant step towards a more accomplished and developed future for the UAE, where economic prosperity, social well-being, and the development of human capital are the main pillars of the next 50.
