UAE is a force to be reckoned with, known for standing back up after an unexpected fall. After the pandemic hit with no prior announcement, it drove the world’s economies and financial markets to take quite the plunge. But despite the hindrance it caused to the UAE’s financial market in 2020, our nation quickly bounced back, treating the pandemic as no more than a minor setback.
2021 marked a year of determination and resilience for Middle Eastern economies, following mass vaccination campaigns, increased customer demand and surge in oil prices. Although the pandemic persists to this day, last year marked a positive turn in spite of the financial market’s plummet in 2020. And according to a press release disseminated by Reuters, the UAE central bank expects a 4.2% growth rate in 2022, attributed to several factors as seen below.
Trades and Investments
The UAE is undoubtedly a popular trading and investment destination. As we’ve previously covered, the rapid recovery experienced by the UAE’s real estate market attracted both local and foreign investors. Equally, the strategic partnerships between a select number of UAE burses and international investment companies, like FTSE-Russel, enhanced the nation's position, leading to higher liquidity in its financial markets.
Recovery in Oil Prices
As we’ve previously mentioned, our government has strategically mapped out its way towards regaining normalcy following a 95% local vaccination rate across all Emirates. And with the increase in mobility, economic recovery and ease in restrictions, the nation witnessed a significant rise in its oil prices. Since oil and gas contribute to approximately 40% of the GCC’s GDP, the recovery in crude oil prices reflected positively on the UAE’s financial market.
Prospective Partnerships
The aforementioned factors, including the high trade and investment volumes witnessed, have gained the attention of international governments and entities. Consequently, many partnerships are being undertaken while others are on their way to being implemented. These regional and international collaborations, whether business or governmental, have reshaped the nation’s financial market for the better. They have played a key role in increasing marked liquidity and propelling the economy forward.
A major economic hub, perfect for trading, exchanges and investments, the UAE has come back stronger after the unprecedented events witnessed by the COVID-19 pandemic. With a higher growth rate expected in the upcoming months, it’s estimated that our nation will continue to climb the echelon until it reaches higher ranks, becoming the MENA region’s main lighthouse.
Individuals looking to relocate to the UAE and investors seeking a new hub for their operations can view our website or directly send us a request at info@benial.ae. We are more than ready to assist them in mapping their way towards the Middle East’s distinctive gem.