Top Industries in UAE

The UAE's economy is booming and is anticipated to grow by 4% in 2024 due to the country's non-oil sectors, which include real estate, construction, wholesale trade, financial services, and tourism, which have all experienced rapid growth. This economic expansion results from some factors, including supportive government policies, increased tourists, and technological advancements.

The UAE's economy is growing significantly due to initiatives like Dubai's 10-year economic plan, which aims to double the size of the economy and turn the city into one of the top global financial hubs. Let's examine some of the primary UAE industries that are promoting economic expansion.

Growing Sectors to Launch a Business in the UAE

The UAE is a vibrant, diverse nation that presents a wide range of business and investment opportunities. The UAE has something to offer, whether you're looking for a new market, a proper location, or a friendly atmosphere. Here are some of the top sectors in the UAE to launch a business:

Retail

The presence of numerous international retailers in the nation has contributed to the retail industry's consistent growth. Quality is becoming more and more popular among consumers, which has increased their purchasing power. The country's retail market is projected to grow at a compound annual growth rate (CAGR) of 5% by 2027 from its estimated size of AED 306 billion in 2022. The increase in per capita income, the influx of expatriates with more disposable income, and new retail construction projects that give retailers opportunities to thrive in the nation all contribute to the industry's growth.

Construction

One of the key drivers of the UAE's economic expansion is the construction sector. It has been growing steadily and is anticipated to register a CAGR of 3.9% from 2024 to 2027. Investments greatly aid the development of the construction sector in the United Arab Emirates in a variety of industries, including infrastructure, housing, oil and gas, renewable energy, industrial, and tourism projects. With its liberal trade policies, the nation is luring more foreign investors to expand the construction sector. The construction market is fiercely competitive due to the presence of significant international players, which offers tremendous opportunities to spur economic growth in the years to come.

Healthcare

One of the best healthcare systems in the world is found in the United Arab Emirates. The nation is dedicated to providing its people with top-notch medical care. With cutting-edge infrastructure and healthcare driven by technology, the sector is developing quickly and has the potential to offer its citizens top-notch healthcare services. By 2030, there will be 11.1 million people living in the country, and they can expect to live an average of 79.8 years. The UAE government also plans to establish local pharmaceutical production to lessen import reliance. The pharmaceutical and medical device industry in the UAE, the second-largest economy in the GCC, has advanced and expanded significantly, supporting economic growth.

Tourism

One of the key drivers of the UAE's economic expansion is the tourism sector. The swift development of the tourism sector is primarily attributed to the nation's appeal to foreign tourists. By 2028, it is predicted that the UAE's travel and tourism industry will contribute about AED 280.6 billion to the country's GDP. Tourism is one of the most substantial economic pillars, potentially adding over 114,000 new jobs over the next ten years. To draw in more visitors from the region and worldwide, the UAE wants to improve the tourism industry with a focus on leisure, adventure, and business.

Real Estate

Thanks to several government initiatives aimed at luring foreign investors and encouraging investments in the industry, the real estate sector has experienced impressive growth in recent years. Entrepreneurs and investors worldwide are drawn to the country because of its pro-investor policies, allowing them to settle down, prosper in their businesses, and live there with their families. The UAE's residential and commercial real estate markets have experienced exponential growth due to the country's growing expatriate and business population. As a result of various government initiatives, visa reforms, and the high standard of living in the UAE, more foreigners are choosing to work and live there, which is causing both the commercial and residential real estate sectors to grow.

Oil and Gas

The UAE's oil and gas sector, which contributes 30% of the nation's GDP, is the region's most significant driver of economic growth. With a daily production capacity of about four million barrels, the UAE is one of the world's biggest crude oil producers. Profits from exporting oil and gas account for a sizeable portion of the government's income. In 2020, the nation will become the newest producer of unconventional gas after only recently beginning to explore its unconventional gas resources. By 2030, the UAE hopes to become independent of Qatar's natural gas supply, which it currently imports.

Logistics and Transportation

Due to improvements in infrastructure facilities like roads, ports, metro networks, and airports, the logistics and transportation sector is expanding quickly. By 2026, the logistics sector, which currently accounts for 14% of the UAE's GDP, is predicted to grow at a CAGR of 8.4%. The industry's rapid expansion will create new business opportunities and attract capital investments to strengthen its digital infrastructure. The development of the e-commerce sector, the addition of global trade, and the uptake of tech-driven logistics services all positively affect the logistics market. The logistics and transportation sector relies on technologies like autonomous logistics, the Internet of Things (IoT), and artificial intelligence to increase productivity and streamline operations.

Consulting

In 2022, the UAE's consulting market expanded by 17%, making it the second-largest market in the GCC. The postponed Expo 2020 gave consultants a fantastic opportunity to highlight their strengths. It was eventually held from October 2021 to March 2022. A significant increase in revenue for GCC consultants has been seen in the public sector due to numerous economic diversification initiatives put forth by the government. While the demand for strategy consulting has grown significantly across the GCC, cybersecurity consulting services are expanding quickly in the UAE. The GCC consulting market is predicted to generate more than $4 billion in sales.

Financial

Banks in the UAE are performing exceptionally well compared to other GCC nations, and their profitability has also increased significantly. The market has grown due to rising interest rates, high oil prices, and effective inflation control. The average net interest margins (NIMs), rising rates, and lower-cost business models have all benefited the banks in the UAE. Due to a booming domestic economy and high oil prices, many of the UAE's central banks are poised to increase loan growth and profits.

E-Commerce

Over the past few years, the UAE's e-commerce market has developed quickly. As consumer preferences change and technology makes shopping more convenient, many customers have switched from traditional brick-and-mortar retailers to online marketplaces. The UAE has experienced an unmatched increase in e-commerce, attributed to the widespread use of smartphones and the Internet and shifting consumer habits. From 2023 to 2027, the e-commerce sector's steady expansion is anticipated to register a CAGR of 11.12%. Following the pandemic, more and more consumers are turning to online shopping, so the sector will continue to grow in the years to come.

Conclusion

The UAE's economy is expanding due to the oil and gas sector and other industries, with a projected 4% growth in 2024. Additionally, the government has carefully planned some initiatives for long-term economic growth. People worldwide are moving to the UAE to live and work, which will help the economy grow even more thanks to the ease of doing business there and the introduction of new visas. If all things go well, the UAE economy has the potential to outperform its GCC counterparts and take the top spot in 2024.