The Attraction of Investing in the UAE and The Kingdom of Saudi Arabia Economies

By Dr. Ghiyath Nakshbendi

What is important when we talk about investment opportunities and what are the attractions of these opportunities, we have to consider the facts. It is always relevant to talk about the state of the economy, and the location of this investment in terms of worldwide. What are the available tax benefits of investing in that country? And definitely what is important as well is the the legal system, especially when you have issues connected with possible conflict with the local authorities. For sure, at the end of the day, the return on the investment.

It’s always the return on the investment and duration. The period by which these investments are going to be made and sustained is another important factor that we have to consider. Also, in that particular economy, an assessment should be made as to the status of innovation and changes in the world market, which is essential.

For the economy in the UAE, it will be fair to identify the progress in certain emirates within the UAE. The UAE is doing an excellent job in terms of keeping up with updating their infrastructure. In the meantime, some emirates are going the extra mile. If I may suggest consequently, we have to consider what is important here. Is that no matter what we are talking about, there are issues connected with the special management or the special expertise of that emirate in the area of investment.  The Emirate of Dubai takes the lead in that arena. Different opportunities are available. Technology and tourism are attractive sectors.  There are constant changes in terms of keeping up with what’s in demand in the world market.

When it comes to developing markets, it’s essential to be concerned about the economic stability of that particular country or that particular region. The UAE in general is considered one of the most competitive economies within the MENA region. This by itself is a good indicator that the investment in the UAE is especially good. In the meantime, they have one of the largest Sovereign Wealth funds in the world. They have a total of $1.7 Trillion (SWFI). They have a progressive economic diversification plan. In addition to that, they have a very attractive Free zones as well. The ease of doing business in the UAE is well documented in World Bank data.   Along with transparency. It is easy to establish a business in UAE plus the available labor force that could be employed in addition. In the UAE there is the ability for 100 % foreign ownership in most sectors. Also, the right to repatriate their profit. Again, there are other areas that we can include in the discussion, but by and large it is an open economy. It is an attractive place to invest.

The Kingdom of Saudi Arabia is one of the major oil-producing countries in the world. And aside from its geographical location

Saudi Arabia is implementing its Vision 2030, which is a very ambitious plan. It is an open economy to a certain degree. They are pushing for innovation. They have ambitious diversification plans Which has been ongoing for quite a long time. In addition to paying attention to the infrastructure, which is very helpful for new businesses they are working hard in terms of providing a well trained and educated labor force. A good number of foreign direct investments have come to Saudi Arabia over the years. And the last one was about $231 billion. It is a country with a GDP per capita of about $20,000 And has a young population. The government has been working very hard in terms of privatization of their state-owned companies.

And that will give a chance for investors to invest in these companies obviously by certain Regulations. The government is interested in improving the general business environment. And that is one of the reasons why investors are encouraged to invest in Saudi Arabia. Over the years There is a move to establish industrial economic cities across the country. And in the meantime, all these activities are supported by a financial sector to qualified entities. The Saudi Arabian Vision of 2030 Which was started back in. 2016 Its basic aim was diversifying and expanding the economic competitiveness, which is very powerful national companies are promoting programs. For sure, Saudi Arabian Sovereign Wealth Fund (PIF) is making an excellent effort to expand their activities within the country. Also, achieving good results. Finally, the Kingdom is a major participant in world affairs, there are member of the G20 and it’s considered one of the top countries in the world in the area of engaging in reforming efforts.

About The Author
Ghiyath Nakshbendi, a Fulbright Scholar, draws upon more than 30 years of diverse business and academic experience within the United States of America and international arenas.  Customized courses in Cross Culture Business Communication and How to Conduct Business and Get Deals Done in specific countries have been well received over the years. Also, he introduced Islamic finance courses along with the first graduate certificate in Islamic finance in the U.S.A. offered by American University in Washington, D.C.

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