Why are we concerned about competitiveness?
Dubai Competitiveness Policy
The Role of the Dubai’s government in reinforcing competitiveness
IMD Dubai Competitiveness Report 2018
Global and Regional Competitiveness Reports
The Government of Dubai is keen to provide all essential components and frameworks and adopt proper policies to enhance Dubai competitiveness and its resilience in the global economy, importantly:
Provide a well-established and modern institutional framework: Dubai embraces many public and private organizations in addition to civil society organizations that constitute the institutional framework for a modern economy.
Provide a well-established and modern infrastructure: The Government of Dubai made sure to establish a modern infrastructure with international standards in all sectors. The novelty and comprehensiveness of this infrastructure contributed to transforming the emirate into regional and global hub for business and investment. This has also helped to provide the best services to the society members in such a manner that could raise the wellbeing of citizens. Despite the great development of Dubai infrastructure, the government still invests in this sector to keep up with the developments in the various sectors and boost growth. According to the Road and Transportation Authority (RTA), the cost of the mega projects focusing on developing the infrastructure of the roads and transportation is estimated to be nearly AED 20 billion, including private projects for Expo 2020 with total cost of around AED 15 billion.
Coupled with above, there are many free zones across the emirate that operate within this motivating business and investment environment. These free zones enhance the national economy performance by attracting investments from different parts of the world, thus they have become incubators for prosperous local and international companies. They also contribute to diversifying the sources of national income and transfer of knowledge and skills; thus, increasing level of local economy competitiveness. Moreover, these zones have expanded to include financing sector, information technology, financial services, media and manufacturing as well. Dubai free zones accounts for 39% of the emirate exports that constitute nearly 30% of the GDP and they formulate a main source for FDI. They actually encompass over 38000 companies employing 33000 workers. On the top of the list Jebel Ali Free Zone (JAFZA), which is considered one of the world's largest free zones.
Establish clusters that are established across the emirate, embodying the core concept of competitiveness. By definition, the cluster is a geographic concentration of related companies, organizations, and institutions in a particular field that can be present in a particular place. Key clusters in Dubai include 'Dubai Internet City', 'Dubai Media City', 'Dubai Industrial City' and 'Dubai Medical City', among others.
Develop and support Small and Medium Enterprises, being the main pillar for Dubai economy. Currently, Small and Medium Enterprises (SMEs) are the backbone of Dubai's economy, representing 95% of all establishments in the Emirate. SME businesses account for 42% of the workforce and contribute around 40% to the total value add generated in Dubai's economy. Mohammed bin Rashid Al Maktoum Foundation for Dubai SME (Small and Medium Enterprises), is an agency of the Department of Economic Development that plays a pivotal role in empowering young UAE entrepreneurs to take steps towards incorporating their businesses. Dubai SME support entails financial resources planning, simplification of formal procedures and helping entrepreneurs set up their own business from scratch to kick-off, being the key authority behind Dubai economic success. Moreover, Dubai SME enhances the spirit of innovation and leadership of entrepreneurs and continuously translates their creative ideas to successful achievements and well-established businesses. These enterprises contribute with about AED 65 billion to the local economy and will provide for nearly 370, 000 jobs by 2021.
Provide a motivating investment climate that is capable of attracting direct foreign investments, especially in high added value sectors. For example, Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development, plays an important role in providing major information and necessary support to foreign companies that aspire to bring investment to the emirate and benefit from its global strategic importance. Dubai FDI provides professional advisory services along practical assistance on all business decisions and matters, starting with determining the best legal forms of corporations and identifying investment opportunities as well as providing a wide network of contacts in government and private sectors. Due to Dubai geographical and economic position in the Middle East, North Africa and South Asia, international investors consider Dubai an important platform for establishing prosperous business. Therefore, Dubai is the regional headquarters of over 25% of the top 500 companies.
Provide advanced high quality services at the various local departments, especially by simplifying procedures and employing the latest information and telecommunication technologies and transformation to digital business. The main target is to save time and effort for stakeholders and customers. Some remarkable improvements can be observed in issuing and processing trade licenses with maximum speed and easiness such as "Instant License" and "e-Trader " launched by Dubai Economy, and issuing new building permit in 5 days by Dubai Municipality, smart applications at Dubai Police Headquarters and Dubai Roads and Transport Authority (RTA), etc. All these initiatives promoted the level of easiness of doing business in Dubai.
The UAE government signed business and economic agreements with dozens of countries and maintained open policy relations, which has opened new broader horizons to access global markets and attract international investments.
Promote local products through exhibitions and events at international level especially under "Made in UAE" initiative.