WEEKLY BUSINESS ROUNDUP - 21st October 2024 – 27th October 2024

UAE GDP to rise to 5.1% in 2025: IMF

According to the IMF World Economic Outlook (WEO), the UAE’s real GDP is projected to remain at 4% in 2024, rising to 5.1% in 2025. The WEO projected the Middle East and Central Asia economies to grow by 2.4% and 3.9% in 2024 and 2025 respectively. Global headline inflation is likely to fall from an annual average of 6.7% in 2023 to 5.8% in 2024 and 4.3% in 2025.

 

Some taxpayers in the UAE have time till end of the month to submit applications or face fines

UAE has called on relevant taxpayers to submit applications before the end of this month or face fines. The Federal Tax Authority (FTA) has renewed its call for Resident Juridical Persons with licences issued in August and September, irrespective of the year of issuance, to promptly submit their Corporate Tax registration application no later than October 31 to avoid administrative penalties.

 

UAE targets 50% share of all vehicles being electric by 2050

UAE has set targets for 50% of all vehicles in the country to be electric by 2050 and leading companies are already pledging support. This initiative showcases alignment with the UAE’s Net Zero by 2050 Strategic Initiative and the UAE’s Demand Side Management Programme (Green Mobility Strategy). 

 

UAE set to bolster investment and attract entrepreneurs after USD 31bn inflow

The UAE’s visionary leadership called for accelerated national efforts to strengthen the UAE’s position as a global hub for investment and a destination of choice for entrepreneurs and emerging enterprises. UNCTAD’s Global FDI Report 2024 highlighted the value of inward FDI in 2023 to the UAE amounted to USD 30.688bn (AED112.6bn), compared to USD 22.737bn (AED83.5bn) in 2022, marking nearly 35% growth and positioning the country in the second place globally in FDI inflows in 2023.

 

UAE fostering key relations with G20 member nations

UAE hosted the UAE-Global Business Forum, organised by the UAE Ministry of Economy in collaboration with the UAE Embassy and Consulate in Brazil. The Forum was attended by key representatives from the G20 and guest nations focused on establishing productive relations between the UAE and leading multinational companies. The UAE participated in the B20 Summit which was a gathering of approximately 1,000 high-level business representations from the G20 member nations, in Sao Paulo, Brazil.

 

Dubai real estate market leans towards affordable property with 2 out of 5 sales worth less than USD 272,000

As per industry reports, a shift is being observed in Dubai’s real estate sector towards mid-market and affordable apartments with 2 out of 5 ready home sales worth less than AED 1m ($272,000). Demand has strengthened within the sector and is fuelled by favourable market conditions, business expansions and new companies entering the region. 

  

Aviation sector activities in Dubai to add USD 53.4bn to GDP and contribute to 816,000 jobs by 2030

It is reported the Dubai aviation sector contributed AED 137 bn to the UAE economy in 2023 and it is expected, by 2030, the Dubai aviation sector and related activities are likely to add USD 53.4 bn to GDP and contribute to  816,000 jobs as per forecasts.

 

Dubai has 19,200 new hotel rooms in pipeline as investors eye tourism boom

The UAE ranks second after Saudi Arabia in terms of the number of projects in the Middle East and Dubai is the leading city with 19,200 rooms in the pipeline from 67 projects. Occupancy rates in Dubai have exhibited consistent growth, hitting a record 90.8% in February 2024 and government backed initiatives like Dubai’s 2040 Urban Master Plan aim to cement the emirate as a top tier tourist and investment destination.

 

RAK strengthens tourism push with hotel acquisitions; expects 3.5mn visitors by 2030

Ras Al Khaimah aims for significant tourism growth, targeting 3.5 million visitors by 2030. Further the emirate is constructing the region’s first casino project - set to open doors in Q1 2027. Varied hospitality groups in the emirate are accelerating expansion through key projects. 

 

RAK free zone attracts nearly 400 firms in one year

It is reported the Ras Al Khaimah Digital Assets Oasis (RAK DAO) has attracted close to 400 companies in a year and is aiming to play a big role in the gaming industry. The freezone issued licences to a diverse range of businesses in all tech-driven segments including - artificial intelligence (AI), metaverse, blockchain, Web3 & more. It is likely that the emirate of Ras Al Khaimah will drive development and growth within the gaming industry.