UAE’s target of 65% GDP growth achievable, say experts

The UAE’s targets to increase the gross national income per capita by 65 per cent and to boost the number of citizens employed in the private sector tenfold by 2021 are achievable, experts said yesterday (Wednesday).

“The UAE, which aims to become the economic, tourist and trade gateway for more than two billion people, is very capable of achieving the world’s highest per capita income and strengthening the presence of citizens in the private sector tenfold,” Dr. Mohammad Abdul Latif Khalifa, professor of business administration and Secretary-General of the Ras Al Khaimah Executive Council, told Gulf News yesterday.

Dr Khalifa, who is also director general of the Ras Al Khaimah Human Resource Department, added the two goals required delivering a highly qualified workforce to meet the future needs of the country, which also entails intensifying investment in education and training.

Emiratis hold only about 1.5 per cent of the jobs in the private sector and an estimated 250,000 citizens are expected to enter the labour market by 2020.

Dr Amani Al Anshasi, assistant professor of economics at UAE University, said the 65 per cent GDP growth over the next seven years may seem ambitious but the UAE can achieve it considering the experiences of other countries such as China, India and Singapore. “China, for instance, has doubled its GDP in 10 years and the UAE can achieve the same goal, providing that it further diversifies its economy,” Dr Al Anshasi said.

Dr Al Anshasi added while oil has fuelled much of the UAE’s social and economic development in the last half-century, it is important to ensure that other areas of economic activity are also given every chance to succeed.

The UAE Government has set out a strategy to expand the contribution of the non-oil sector to the GDP and boost the creation of high-quality jobs in export-oriented, knowledge-based sectors.

“The Economic Vision seeks to boost the contribution of the non-oil sector from around 40 per cent of the GDP in 2008 to over 60 per cent by the year 2030,” Dr Al Anshasi said.
Launching the UAE National Agenda for the next seven years, viewed as an extension of the UAE Vision 2021, in Abu Dhabi on Tuesday, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said over the next seven years, we are set to increase the gross national income per capita by 65 per cent, and to make the UAE the safest place in the world, in addition to achieving a four-minute response time for all emergency calls. Another objective is to make the UAE the top country in smart-phone governmental services.

Dr Fernando Zanella, Associate Professor of Economics at UAE University, said the goal [of 65 per cent GDP growth] is achievable citing the most recent Global Competitiveness Report issued by the World Economic Forum for 2013-14 which ranked the UAE as the 19th most competitive country in the world.
“The UAE has also been ranked first in the Middle East and North Africa in terms of ease of doing business,” Dr Zanella added.

Dr Zanella, however, suggested that the goal requires an overhaul of laws to become more business-friendly and to invest more in the human capital.
Having created an attractive environment for business and investment, the UAE is now the regional headquarters of over 25 per cent of the top 500 companies in the world.
As the UAE proceeds with its diversification strategy, Sultan Saeed Al Mansouri, Minister of Economy, said he expected that the knowledge economy will contribute 5 per cent of the GDP by 2021.

Al Mansouri added foreign direct investments into the UAE are estimated to have surged 21 per cent to $9 billion (Dh33.2 billion) in 2012 from $7.6 billion the previous year.
The minister said that to pave the way for increased FDI inflow, the UAE has been progressively restructuring its regulatory environment to align it with global best practices in transparency, investment protection and competitiveness.

Ali Eisa Al Nuaimi, a member of the Federal National Council, said the UAE — one of the happiest places, having topped the Arab world and ranking 14th globally in the World Happiness Report 2013 — is right on target for the 2021 Vision and the next seven years are a golden chance for the country to diversify its economy and increase its GDP very rapidly.
Al Nuaimi stressed he was very optimistic about achieving the national agenda, as every citizen will work together as one team to ensure that the agenda is achieved.
Shaikh Mohammad said: “Our goal is to increase the Emiratisation in the private sector tenfold. The government will enforce a number of measures if there is not enough incentive for working in the private sector.”

On education, Shaikh Mohammad said all public schools and curricula will be transformed into smart learning. Governmental investments in nurseries will be increased in light of the important role they play.

On the health sector, Shaikh Mohammad assigned the Ministry of Health to accredit all public and private hospitals in accordance with world-class standards in terms of services and quality of medical cadres, noting that any unaccredited hospital would not be allowed to operate in the UAE after 2021.

Regarding housing, Shaikh Mohammad said the objective of the national agenda is to shorten the waiting period for housing applications from 10 years to two years, noting that this period has already been reduced to five years. “It is a world record time for provision of houses to youth planning to establish families.”

Gulf News Read More: http://gulfnews.com/news/gulf/uae/government/uae-s-target-of-65-gdp-grow...