São Paulo – The high COVID-19 vaccination rate and the Expo 2020 Dubai to be held later this year offer good prospects for the market of the United Arab Emirates. From October on, the country will host the world exhibition Expo that welcomes delegations from around the world and usually drives the economy of the countries that host it. The UAE have one of the highest vaccination rates globally, and this stimulates commercial activities.
Dubai Investment Development Agency (Dubai FDI) CEO Fahad Al Gergawi says that over 9.5 million COVID-19 vaccine doses have been administered to the UAE population. The country has almost 10 million residents. “The government has created multiple access points around the country to administer the vaccine and has made it its number one priority,” he told ANBA. According to Al Gergawi, all residents are encouraged to get vaccinated, and the government is exploring different options for the remaining percentage of people to get vaccinated.
Foreign residents living in the UAE have a positive perception of how the Arab country has dealt with the pandemic. The Brazilian ambassador in the UAE, Fernando Igreja, says the vaccines started being administered to the population last December and a mass vaccination campaign started in mid-January. “The situation is increasingly making the population feel more secure and reassured,” Igreja told ANBA.
Nevertheless, the country keeps taking precautions to curb the spread of the disease, ambassador Igreja says. Stores and restaurants operate with restricted occupancy rates and social distancing measures, people are encouraged to stay home and avoid crowds, public school classes take place exclusively online while private school give classes to a restricted number of students, the use of masks is mandatory in business premises, and there are precautions regarding the entry of foreigners from most countries.
The ambassador believes the country has made many efforts for things to go back to normal and sees a upward trend in the economy, but normal levels are still to be reached. “While everything is heading back to pre-pandemic levels, we still have much to do. It is important that we do not lose this forward momentum,” Dubai FDI’s CEO said.
Al Gergawi believes there is an increase in investor confidence and perception in the Gulf region due to the handling of pandemic and the government’s commitment to its residents that it has everyone’s best interests in mind. “Dubai and the UAE have always believed in collaboration between the public and private, and we will work together to return to pre-pandemic levels with our global partners,” he said.
The head of the Arab Brazilian Chamber of Commerce (ABCC) office in Dubai, Rafael Solimeo, believes the strategic vision of local rulers in fighting the crisis and seeking out innovation with specific, ambitious programs even amid the pandemic, coupled with the vaccination that has taken place in a very comprehensive and expeditious manner, are helping the uptake. He mentions incentive plans such as Dubai 2040 Urban Master Plan of urbanization and the Operation 300bn to encourage industry.
Expo that drives economies
The preparation for Expo 2020 is a key driver for the local market. Al Gergawi calls the Expo a milestone for the UAE. Ambassador Igreja says the exhibition is a natural boost for the UAE to go back to normal, as the service sector – which includes events – is a key element for the country’s economy, particularly in Dubai. “A strong vaccination program, together with megaevents such as Expo Dubai, will usher in a resurgence in 2021,” Solimeo agrees.
Igreja believes the way that the UAE hosted trade shows such as Gulfood and Idex defense show with COVID prevention protocols made visitors feel safe while curbing the spread of the disease. “This leads to a good expectation of the Expo,” he says. He believes the current restrictions of foreign arrivals with PCR tests and vaccinations will be good for the Expo.
The ambassador calls for Brazilian businesspeople to be attentive to the Expo 2020. “Brazil is expected to have a great participation in the Expo. Our pavillion’s architectural project is extremely beautiful and appealing, so I believe it’s very important for the Brazilian private sector to be aware of the opportunities that could arise from the Expo 2020 Dubai,” he says.
Igreja says the UAE market tends to follow an eventual worldwide economic upturn. “It will certainly be in a good position and is very prepared for that. I believe it’s crucial for the Brazilian exporter to keep betting on this market,” he says, pointing out the UAE has not a large population, but it’s a showcase and outlines trends. He advises Brazilians to seek out new businesses and investments in the UAE, as the country becomes an increasingly scene for innovation.
Find out more about the UAE:
- UAE allows 100% foreign-owned businesses
- UAE probe the first Arab mission to reach Mars
- UAE to rework agriculture in bid to address global warming
The pandemic has left marks on how to do business in the UAE. Dubai FDI’s CEO says the main difference is online engagements, with online appointments and a decreased need to meet in person. “There are more global collaborations happening due to increased acceptance of Zoom meetings,” he says, adding that this is a positive driver for global business.
Innovation attracts investments
The UAE has moved towards innovative, future-oriented, sustainable business, which has guided the investment promotion. Al Gergawi says Dubai attracted AED 24.7 billion (USD 6.7 billion) in foreign direct investment (FDI) into 445 projects, creating an estimated 18,325 new jobs in 2020. He believes aggressive strategies and stimulus packages have reinforced investor confidence in Dubai. “Industry 4.0 and a strong focus on future-oriented sectors has enabled Dubai to attract global investors and talent,” he said.
Al Gergawi says the UAE is a constantly evolving market, and investors are greatly benefited from this evolution. The Dubai FDI’s CEO points out that many laws and regulations have recently been passed to benefit investors. “It is important for investors to keep up to date on the new strategies, regulations and policies to see how they will enable them to grow, not only in Dubai but in the region. We have established Dubai’s value proposition as a city of the future, a regional gateway, and a global hub. All of Dubai’s entities fit into this value proposition and can help investors along their journey,” Al Gergawi said.
Translated by Guilherme Miranda
