UAE to invest Dh500bn in aviation sector

Sultan bin Saeed Al Mansouri, UAE Minister of Economy inaugurated on Wednesday the Commercial Attaches and Business Councils Forum at the Intercontinental, Festival city in the presence of more than 90 commercial attaches and 30 business councils from 26 countries.

The Forum highlighted the investment environment in the UAE and the features and facilities offered to investors and it also highlighted the investment law and its role in enhancing the investment climate in the UAE.

In his key note speech Al Mansouri said that through partnerships between the government and the private sector, between local and foreign businesses and between investors across borders, "we aim to promote fair and free trade and cement the UAE's historical leadership in trade and entrepreneurship."

"Today the UAE is poised to be a major player in global trade and cross-border investment. We have successfully overcome the challenges of the global economic crisis and is moving confidently to the next level of growth," he added.

Al Mansouri noted that UAE did not report a single bank failure during the global financial crisis.

"Today we lead the GCC region in total bank assets and bank reserves. Capital adequacy norms that our banking institutions follow already exceed the requirements of BASEL III. According to a recent World Bank report every UAE resident has a deposit account penetration of 1751 per 1000 adults - one of the largest in the Middle East," he added.
 
He emphasised that UAE's economic diversification, infrastructure expansion across the country and the determination to emerge as a knowledge economy presents vast opportunities for trade and investment.
 
While having the seventh largest oil reserves in the world UAE is also a successful model of a diversified economy.

"Non-oil activity constituted 71 per cent of our GDP in 2009. Today, growth and diversification in the UAE is led by traditional sectors such as trade, logistics, and tourism", he noted.

Al Mansouri said: "We offer businesses the advantage of 100 per cent ownership in our free zones, in addition to clearly defined policies and procedures that enable business growth. The industries sector currently contributes 16 per cent to our GDP and we have a stated goal of increasing this to 25 per cent".

"We have a world-class transport and communications network as well as some of the fastest growing airports and airlines in the world. Air traffic in the UAE witnessed 11.5 per cent growth during the first half of the year as our national carriers added new destinations and our liberal open skies policy brought in more foreign carriers to the UAE. Over the next 10 years the UAE will be investing Dh500 billion in its aviation infrastructure improving connectivity and cementing our reputation as a key growth driver in global aviation," he added.

UAE is one of the largest foreign direct investment recipients in the GCC region, recording more than Dh73.4 billion in direct investments in the past two decades, the minister noted.

The UAE also has a strong small and medium enterprises (SME) sector, accounting for almost 94 per cent of the businesses in the country that has inspired and nurtured innovations over the years. Sustainability is a key segment where innovations and investment in research and development, human capital and knowledge is vital.

The UAE has emerged as a strong proponent of the global sustainability movement with Masdar, the zero-carbon, zero-waste city that aims to promote, develop and deploy commercially viable clean technologies.

"Our current focus is on creating a robust legal and policy framework in the UAE to bring more investments into the promising growth sectors. The Ministry of Economy, as mandated by the federal government, is currently co-ordinating efforts to draft new laws and modify existing ones governing Competition, Foreign Investment, Arbitration, Intellectual Property, Companies, Industries and SMEs. The new laws are in the final stages and when implemented, they will plug the gaps in the legal and regulatory space in the country," Al Mansouri said.

"More importantly, the ongoing reforms will allow investors to focus entirely on growing their business, with transparent and competent governance protocols to protecting their investment and ensuring fair competition. The UAE economy is set for an exciting phase of diversification, more transparent and free trade and investment and deeper integration into the global economy. Our economy is expected to record a GDP of one trillion dirhams this year, with a nominal growth rate of about 9.3 per cent and a projected real growth rate of 2.25 per cent" he added.

Al Mansouri said that private sector enterprises will benefit from this accelerated growth. "We consider the private sector a strategic partner in achieving our economic goals."

"We are a cosmopolitan nation with over 200 nationalities and a vibrant economy. We have always welcomed investors from all over the world and provided them a stable and secure growth platform. Entrepreneurship is also part of our national ethos and the UAE is home to iconic global brands like Emirates, Etihad, Etisalat, Emaar and Masdar," he added.

He said the UAE is determined to be in the forefront of the change the world is looking forward to in the aftermath of the global economic crisis. "As a recognised global hub for business and trade, the UAE truly bridges the East and West, serving as a gateway that connects over 2.5 billion people within a four-hour flight distance. The UAE ranks in the Top 5 MENA nations in World Bank's Doing Business Report for 2010 and is ranked 25th in World Economic Forum's Competitiveness Report. We are building on our strengths and marching towards accomplishing the vision of our leadership, engaging more and more with the rest of the world by promoting trade, investment, and people-to-people contacts," he concluded.

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