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UAE is the house of most remarkable architectural marvels and tech innovators in the world
UAE is best known for its tourist places and oil reserves. Nearly 30 percent of the country’s GDP is directly based on oil and gas output. It is one of the most liberal countries in the Gulf, with different cultures and beliefs. The county's relationships with foreign nations are based on a robust and balanced foreign policy. To promote innovation and develop innovative infrastructure, the UAE has its national innovation strategies and frameworks. That makes the country a global hub for technology and innovation.
At Expo 2020 Dubai, Minister of State for Advanced Technology Sarah Al Amiri voiced that "Anyone who wants to innovate will find the UAE as the right place." The country, since its inception in 1971, has continuously been distinguished as a place for innovation and creativity, enhancing its social and economic status and transforming into a primary destination for talents and businesses in record time.
With the UAE Vision 2021, the country's leadership believes that innovation is the future of human investment and emphasizes its importance across all sectors. In a report, the Abu Dhabi Chamber recommends a multi-plan on how the government of Abu Dhabi can continue to support and spread the culture of innovation.
These steps include:
- Offering incentives to undertake R&D
- Promoting training and education
- Improving collaboration between academia and industry
- Creating innovation metrics
- Simplifying policy by cutting bureaucracy
The UAE has been ranked first among the MENA countries and 36th worldwide on the Global Innovation Index 2014. The country's total investment in innovation is estimated between AED 10 and AED 14 Billion yearly, AED 7 Billion of which are located for R&D.
Startup and Small Business Ecosystem in the UAE
There has been a lot of talk about accelerators and incubators and the support to emerging entrepreneurs in the country. To make the UAE an innovation and tech hub, the government is encouraging entrepreneurs, offering extended visas for global entrepreneurs, providing funding and support to smaller businesses, and more. In 2019, the UAE government announced foreign entrepreneurs will be 100 percent shareholders in a locally incorporated business. In May same year, the country introduced a system for five- and ten-year residency visas. This allows non-UAE investors and specialists to live, work and study in the country without a national sponsor.
A Wamda's report in collaboration with STEP Conference revealed that the UAE was ahead of many countries with 26.5 percent in sectors including E-commerce, Healthcare, Fintech, and Marketplaces.
To encourage and attract tech businesses to the country, the UAE government in 2019 announced the creation of a new technology space, Hub 71. Located in Abu Dhabi, Hub71 is a community of founders, investors, and business enablers that form a unique technology ecosystem in the region.
Apart from the private investments, the government has also announced several schemes and incentives for small and medium scale enterprises. SMEs represent over 98 percent of the total number of companies operating in the UAE and contribute towards 52 percent of the non-oil GDP, according to the UAE Ministry of Economy.
The UAE's outstanding infrastructure, safe-haven status, business-friendly economy, and regulation have ranked the country top of Arab countries and 21st globally in the World Bank’s Ease of Doing Business 2018 report.
According to reports, the United Arab Emirates was among the first countries to conduct a mass sterilization program and adopt novel ways to limit the spread of COVID-19.
Race to Become a Leader in Technology
With the booming technology landscape, the UAE is adopting a robust strategy to harness the power of cutting-edge technology. The technology market in the country is currently worth an estimated US$5.5 billion. And it is continually emerging as one of the region's fastest-growing industries. As the number of devices connected to the internet is projected to reach 1 trillion worldwide. the UAE alone is anticipated to reach half that figure by 2050. The country is also aggressively turning to smart cities. Silicon Park is the first smart city in Dubai that sets the country to build a reputation to be among the smartest city in the world.
To wrap up, the UAE is emerging as the best place for tech entrepreneurs and innovators. Businesses and individuals who are able to make the most of the government-led initiatives and resources will have plenty of options to do business in the country and thrive in the digital age.