The UAE has benefitted from being a safe haven amid the ongoing regional unrest. Its economic growth is supported by continually high oil prices and the growth in non-oil sectors including real estate, transport and tourism industries. In November 2013, Dubai won the bid for hosting the World Expo 2020. Expo-related infrastructure investment is expected to create many business opportunities and boost employment.

Of the seven emirates in the UAE, Abu Dhabi and Dubai account for the lion’s share of the country’s GDP. Abu Dhabi, accounting for about 60% of the UAE’s GDP, owns around 10% of the world’s oil reserves and about 90% of the country’s oil reserves, and it focuses on energy-based industries. Meanwhile, Dubai, the second largest economy in the UAE, is known for its commercial and financial services, tourism, logistics and trading.

With an aim to reduce the contribution from the oil-related sectors, the UAE strives to diversify its economy by developing tourism, retail, trade and real estate industries. As part of its diversification program, the UAE government continues its free zone development. Currently, there are more than 30 free zones in the UAE (and over 10 more free zones are currently under development or to be developed) and many of them have specialised themes such as finance, logistics, media, healthcare, textiles and automobile. Companies in free zones can usually enjoy 100% foreign ownership and profit repatriation, with no corporate tax, no custom duty, no currency restrictions, no labour restrictions and no trade barriers or quotas.

The aviation industry has become increasingly important to the country’s economic diversification. Dubai’s aviation industry contributed approximately 28% of GDP in 2011, with over 250,000 people employed in the sector. Thanks to the expansion of infrastructure and airline networks, passenger traffic in the Dubai International Airport (DIA) grew 15.2% to reach its historical high of 66.4 million in 2013, of which 65.9 million were international passengers, marking it the second highest in the world for the same year. In October 2013, Al Maktoum International Airport at Dubai World Central (DWC) started to manage passenger traffic, after its cargo operations were launched in 2010.

To enhance investor confidence and prevent over-speculation in the property sector, the UAE Central Bank has been tightening regulations on the banking sector. Furthermore, in June 2012, the Dubai government issued Islamic bonds (sukuk) totalling US$1.25 billion, marking its return to the bond market in almost a year to take advantage of the emirate’s economic rebound and lower financing costs. Since the peak of the Dubai World debt crisis in 2010, the cost of insuring the emirate’s debt has dropped by one-third. With the sukuk issuance of US $4 billion, the Dubai government has greater room for managing its budget deficits and refinancing plans.

The UAE is a member of the World Trade Organisation (WTO), and maintains a rather liberal trade regime. Customs duty is calculated on the CIF value at the rate of 5% for most products. Imports of intoxicating liquors, however, are subject to a 50% customs duty on their CIF value, while the rate for tobacco products is 100%.

The listed changes, the friendly financial environment and the fact that this region has a great spending power makes the UAE an attractive market, where not just the multinational companies can find satisfying opportunities, but new, innovative projects can prosper with the help of good marketing partners.