Day: August 12, 2023

Dubai’s infrastructure continues to be the key to its prosperity, and the government has recognized this by dedicating 46% of its 2020 budget to its growth. This dedication to infrastructure development involves work on airport and port facilities as well as public transportation and is essential to assisting a number of economic sectors.
Businesses in Dubai and beyond can apply for e-business residency.
Dubai’s government has made significant infrastructural expenditures, and it also fully supports innovative programs that aim to create an environment where enterprises of the future may prosper.

Dubai, a real-world test site for the future, collaborates with visionary leaders from around the globe to encourage genuine collaboration and creativity. This backing is shown in the government’s establishment of e-business residency, this enables business owners, wherever they are based, to establish virtual firms in Dubai.

Up to ten-year residency permits
Additionally, the city now grants professionals in the medical, scientific, research, and technical domains resident visas valid for up to 10 years. Additionally, Dubai is home to a burgeoning network of incubators and accelerators for startups that are perfectly situated to support companies during their initial phases of growth.

Ideally situated, serving as a testing ground for new ideas

Dubai is strategically situated and can serve as an incubator for a wide variety of enterprises, making it ideal for innovators and those looking to build globally competitive businesses. These four industries are ideal for Dubai.

Healthcare and medicine

By the end of 2021, it is expected that Dubai’s medical and healthcare sector would increase to a value of US$28 billion. According to a report by Fitch Solutions, the healthcare industry in MENA is predicted to increase at a rate of 11.7% compound annual growth rate (CAGR) at constant currency rates, from US$185.5 billion in 2019 to US$243.6 billion in 2023.

Dubai Healthcare City (DHCC), the largest medical free zone in the world, and Emirates SkyPharma, the first and largest multi-airport hub exclusively for temperature-sensitive pharmaceutical shipments, are both located in the city.

A major force behind ICT and technical advancements is health tech.
In order to enable the licensing of new facilities and the application of cutting-edge technology, Dubai Health Authority provides proactive investment facilitation supports and promotes discourse on policies and regulations. This will encourage rollout and increase community access to patient care. Over 75% of outpatient services and over 65% of inpatient services in Dubai are utilized by private sector healthcare providers.

The city is engaged in a number of projects to implement cutting-edge technology in healthcare, including 3D modeling, precision medicine, robotic pharmacy, digitization, health apps, smart fitness, and many others.

Technological innovation
The UAE is one of the top 10 nations in the world, according to KPMG’s Autonomous Vehicles Readiness Index (AVRI), in terms of readiness for driverless vehicles.

Leading logistics technologies will power trade in the future.
The city is also spending a lot of money on incentives to promote the switch to electric vehicles, including free public charging stations, toll-fee exemption, and reductions on vehicle registration.

The fastest transit system in the world moves freight at breakneck speeds.
For instance, the Dubai government is collaborating closely with Virgin Hyperloop One to build the fastest transit system in the world, which would transport both people and freight at previously unfathomable speeds. The cooperation between Virgin Hyperloop One and DP World, which manages Dubai’s ports, is expected to transform Dubai into a regional logistics and support powerhouse.

It is a component of the Cargospeed project of DP World, which seeks to provide superior priority service for on-demand commodities. Not only will freight be delivered at record-breaking speeds, but trucking-like prices will be used to accomplish this. Cargospeed will enable customers to respond swiftly to unexpected needs and keep flexibility at times.

One of the top cities in the world for fashion spending per person

Dubai had one of the highest per-person fashion spending rates in the world last year, at $1,600 USD.Due to its proximity to African and Indian production centers, Dubai makes logistics for the fashion industry more easier. The government of Dubai has reacted by opening the College of Fashion and Design to establish a top-notch educational institution that will promote the rise of both local and international talent in light of the growing presence of international brands and the upsurge in popularity of regional brands such as Elie Saab, House of Nomad, and more.

A reduction in oil output as a result of OPEC-agreed production limits, a slowdown in the non-oil sector due to increased interest rates, and weak foreign demand are some of the major challenges facing the UAE’s prospects for economic growth in 2023. Global Data predicts that the UAE’s real GDP will rise at a lesser rate of 3% in 2023 compared to the strong 7.6% growth rate seen in 2022.

The oil and gas sector contributes over 30% of the UAE’s GDP and 13% of all exports, according to GlobalData’s most recent research, “Macroeconomic Outlook Report: UAE.” The year 2022 saw a major economic recovery, fueled mostly by rising oil prices, with a growth rate of 7.6%, the highest since 2007.

However, the UAE’s prospects for the current year’s economic growth are directly impacted by the fall in oil and gas prices that has been occurring since the start of 2023 and is predicted to continue throughout the year.

Economic research analyst at GlobalData Indrajit Banerjee makes the following observation: “The government must continue to pursue its goal of diversifying the economy if it wants to reduce the economy’s sensitivity to outside shocks. The UAE Circular Economy Policy 2031, with an emphasis on manufacturing, food, green infrastructure, and sustainable transportation, as well as Abu Dhabi’s plan to invest US$2.7 billion to double the population of the manufacturing sector by 2031, reflect the government’s desire to shift to a more diversified economic base.

The industries that contributed the most to the gross value added (GVA) in 2022 were mining, manufacturing, and utilities, which made up 31.2% of the total. Next came financial intermediation, real estate, and business activities, which made up 22% of the GVA, and the wholesale, retail, and hotel sectors, which made up 15%. GlobalData predicts that these three industries will expand nominally by 2.9%, 3.7%, and 2.5%, respectively, in 2023 as opposed to 9.6%, 12.4%, and 8.4% in 2022.

With an investment of US$23 billion in July 2022, the UAE has started a number of development projects that will open up employment possibilities and greatly increase the construction and related industries. The building of Dubai’s urban tech center and the AED40 billion (US$11 billion) railway network project are only a couple of the ongoing initiatives,

the Rashid Solar Park’s capacity being increased by 2025. The construction activities, which GlobalData predicts will increase by an average of 2% between 2023 and 2025, are anticipated to be driven by these projects.

Export growth is anticipated to drop from 4% in 2022 to 2.6% in 2023 on the international front. Real household consumption spending is anticipated to increase domestically at a slower rate of 4% in 2023 compared to 8.4% in 2022.

In the GlobalData Country Risk Index (GCRI Q4 2022) of 153 countries, the UAE is categorized as a very low risk country and is rated 10th overall. In comparison to other countries, the country has a lower risk score in terms of the macroeconomic, social, and environmental risk criteria, as compared to average of middle east and north African nations.

In 2021, the UAE will hold 4% of the world’s natural gas reserves and 7.2% of the oil reserves, according to a GlobalData study based on statistics from the OPEC database. ADNOC found 650 million bbl of onshore crude oil reserves in Abu Dhabi in May 2022, which was a huge discovery. The hydrocarbon reserves base in the UAE has grown as a result of this discovery. As a result, it is anticipated that the nation will continue to play a significant role as an important producer and exporter of hydrocarbons in the near future.

The UAE’s economic growth projection for 2023 confronts hurdles, but continuous diversification efforts and development initiatives targeted at bolstering the economy will play a crucial role in lessening its sensitivity to outside shocks, according to Banerjee.

For the first time in human history, we are fortunate to live at a time where life extension is actually a possibility. Even though we still cannot escape death, science has dramatically increased life expectancy, first with vaccines and subsequently with new medications to treat chronic illnesses.

The Hevolution Foundation in Saudi Arabia announced plans to invest up to $1 billion annually in basic research on the biology of aging and potential pharmacological inhibitors in 2021.

The UAE, a neighboring country, has begun a national initiative to map each Emirati’s DNA in order to provide individualized medical care for each resident. This initiative paves the way for local production, design, and manufacture of cutting-edge medicines for diseases like cancer and diabetes in the future.

For more than 10 years, the area has been interested in biotech as a potential growth sector.

While governments in the area have prioritized research into diseases, extending life expectancy, and producing treatments, investors and regulatory agencies have been investing to establish public-private partnerships with big pharma and upstart biotechs during the past few years. Players in the biopharma industry are developing inventive manufacturing capabilities.

In addition to signing partnerships with top-tier global pharma partners, local drug makers are expanding their local production capacity with new creative therapies for diseases with high frequency due to lifestyle factors, rare genetic abnormalities, and malignancies.

The strategy worked well. As an ecosystem is developed, the biotech and life sciences sector in the area is expanding to new heights.

Proactive healthcare prevention
“Pharma and life sciences developed to the forefront in the Middle East over the pandemic when the supply chain got disrupted, and life-saving medication was not accessible, putting millions of lives at risk,” says Abbas Berdi, a partner at PwC Middle East who specializes in the healthcare sector with a focus on pharmaceutical and life sciences. The inclusion of supply chain resilience and medication supply security in national agendas was sparked by this, according to regional governments.

Instead of combating disease, Berdi contends that proactive preventative healthcare is the main goal. And this quality is especially useful in areas where diabetes and heart disease place a heavy strain on healthcare providers and lead to high rates of hospital admission.

Due to its extensive talent and investor pools, Abu Dhabi, the largest biotech hub in the UAE, attracts both major pharmaceutical corporations and the most promising biotech startups.

According to Kareem Shahin, Chief Business Officer of G42 Healthcare, a major health tech business with offices in Abu Dhabi, “The UAE government made investments in infrastructure, research facilities, and universities to promote innovation in the sector.” Public and private institutions collaborate in the “life science ecosystem” to advance innovation, R&D, and medicines production.

Spending on healthcare

According to recent data, the biotechnology industry is growing rapidly in the area. The biotechnology market in the area is anticipated to reach $2.6 million by 2028, with the UAE and Saudi Arabia holding the highest part of the industry, according to a report by the Dubai Chamber of Commerce. The UAE included $1.3 billion on healthcare and community protection in the federal budget for 2023. According to Marwan Abdulaziz Janahi, Senior Vice President of Dubai Science Park, “the country is currently a regional leader in attracting FDI in the biotechnology sector.”

“With strategic clients like Pfizer, Insulet, and Bayer, our community supports Dubai as an international hub for medical tourism, healthcare excellence, and innovation,” continues Janahi. The neighborhood has purpose-built centers for R&D by himalaya wellness ,Firmenich.

AstraZeneca has revealed intentions to construct headquarters at Dubai Science Park, joining a neighborhood of business titans that already includes GE Healthcare, Sobi, and Bio-Rad. There is also an innovation hub for Zimmer Biomet Holdings. The rise in chronic diseases, in the opinion of experts, is one of the major factors influencing investment in biotechnology in the region.

According to Shahin, the MENA region’s chronic illnesses and pressing demand for better healthcare have produced a large opportunity for biotechnology investment.

Due to a number of causes, such as an aging population, urbanization, and shifts in lifestyle and food, the prevalence of chronic diseases has been continuously rising, placing a considerable load on healthcare systems.

A study found that although the amount spent on healthcare in the area has been expanding quickly, the standard of care has not improved due to poor access to basic services and a lack of qualified healthcare workers. According to Shahin, this has increased demand for fresh and cutting-edge medical treatments, including biotechnology.

Several nations in the region have started population health programs to better healthcare outcomes and lessen the burden of chronic diseases in response to this demand.

The King Abdullah International Medical Research Center, which carries out cutting-edge research in genetics, immunology, and cancer, is located in Saudi Arabia, which is also investing heavily in biotech infrastructure, R&D, and talent acquisition.