PESTLE Insights: The United Arab Emirates – Macroeconomic Outlook Report

The Emirates of Abu Dhabi, Dubai and Sharjah are among the best performing regions in the UAE. They contribute 99.6% to the GDP and comprise 80.8% of the UAE’s population, as of 2018.

Opening up 13 sectors to the foreign investors in 2019 along with increase in greenfield investments in the UAE to increase job creation and accelerate economic activity over the medium term

Services contributed 52.5% to the gross value added (GVA) in 2019, followed by mining, manufacturing and utilities (38.4%). In nominal terms, the two sectors grew by 0.88% and 0.70%, respectively, in 2019, according to MarketLine estimates

Scope

– As per World Bank's logistics performance index (LPI), transport and logistic infrastructure in the UAE improved over the last two years with a jump in ranking, out of 160 countries, from 13th in 2016 to 11th in 2018

– Abu Dhabi Securities Market (ADX) General Index, an index widely considered as a benchmark for stocks listed in Abu Dhabi Securities Exchange, exhibited a declining trend over the past year. As of April 14, 2019, the ADX General Index stood at 5,174.02, compared to 4,178.70 on April 14, 2020.

Reasons to buy

- Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.

- PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations

- Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.

- This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.

Companies mentioned

EMAAR

Flydubai

Vox

Sharafco

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