Dubai set out a 32tn-dirham ($8.7tn) economic plan yesterday that includes doubling foreign trade and investment over the next decade to boost its standing as a global financial hub.
The emirate, part of the United Arab Emirates federation, is a business and finance centre in the Middle East. It’s already been deepening trade routes and working to attract global firms as it faces growing regional competition.
Foreign trade is targeted to reach 25.6tn dirhams by 2033 as the city adds to its global partners. Dubai is also seeking to attract foreign direct investment of around 60bn dirhams annually, Dubai’s ruler Sheikh Mohamed bin Rashid al-Maktoum tweeted.
Dubai’s economy continued its post-pandemic recovery in 2022 and grew an annual 4.6% in the first nine months of last year. But its plan for longer-term growth comes as economists forecast a grim global outlook. The International Monetary Fund expects one third of the world economy to be in recession this year with the US, Europe and China all slowing down simultaneously.
The emirate is seeking to boost its manufacturing and logistics sector as part of the plan. Government spending will rise to 700bn dirhams over the next 10 years from 512bn dirhams the decade before, it said.
The city has been a commercial capital for more than a decade, but Saudi Arabia is also seeking to expand its role as a business and trade hub under Crown Prince Mohamed bin Salman’s Vision 2030 development plan.
Dubai has adopted legal changes and loosened restrictions to retain its allure to foreign investors and talent. It has introduced visas to allow foreigners to work, live and study without needing a sponsor.
While favourable immigration policies and regulation make it easy for firms to set up business in the city, they also come with risks. Dubai is coming under increasing international scrutiny after it attracted crypto heavyweights and Russia’s wealthy as other jurisdictions increasingly sanction and shun them.