UAE (Washington Insider Magazine) -The United Arab Emirates has introduced an array of initiatives titled ‘Projects of the 50’ to coincide with the state’s golden jubilee.
The economic reform is a necessary move for the gulf state to keep pace with its larger neighbor and economic rival, Saudi Arabia who have recently made moves to liberalize its economy in the hopes of diversifying away from oil.
Both states rely heavily on hydrocarbon exports to make up the majority of their astronomical wealth but are coming to terms with the fact that a post-oil world is being forced upon the planet by climate change.
Riyadh has made moves to ensure regional headquarters are located in Saudi Arabia and has removed tariff concessions on imports from the UAE.
In response, the UAE has moved to introduce social reforms that make living in the country more appealing to potential investors, the world’s wealthy and expatriates. An extremely conservative country by global standards, the recent change in legislation decriminalizes the consumption of alcohol and greatly liberalizes laws on divorce and unmarried cohabitation.
90% of the country’s 10m population is made up of expatriates, so laws that allow for lifestyles closer to the West, where many of them hail from, helps the UAH maintain its appeal next to Riyadh.
Visas in the country are notoriously strict and closely tie in to employment. People who find themselves redundant are often in an unrealistic race against the clock to regain employment before their residence becomes illegal.
There have also been economic initiatives announced. One aim is to raise productivity by 30%, and the government hopes a $1.3 billion fund for industry to adopt advanced technology can help with this. The same amount has been set aside for a national bank to allow it to support UAE project.
At the beginning of 2021 legislation was introduced that allowed foreigners to own businesses outright for the first time. Previously it was required for all companies onshore to by Emirati majority-owned.
The Emirati government has for the last year been shifting focus from strategic influence in the Middle East region to the domestic economy and the Projects of the 50 is a large statement of intent to keep up with other economies on its border.
