Five Growth Sectors to Watch Out for in 2023 in United Arab Emirates

After the brief lull worldwide induced by the Covid-19 pandemic, Know the growth sectors to watch out in 2023. Business is back to normal across the world, especially the UAE. A wise leadership, proactive policies, tax-free income, tolerant culture and excellent infrastructure have ensured the country is a sought-after destination for over 200-plus nationalities who like to call it their home, workplace or investment destination.

In the over 50 years of its existence, the UAE has moved on from an oil-based economy to a non-oil-based economy so much so that the non-oil sector now accounts for 71% of its Gross Domestic Product. In 2021, the annual FDI flow was US$20.7 billion achieving a 4% growth. Relaxed rules and a Golden Visa are added attractions for investors to set up a business in Dubai strategically located Arab nation.

In this ebullient environment, the UAE economy is witnessing a growth spurt in all key sectors. Among them, the top five growth sectors to watch out for in 2023 are:

Five Growth Sectors to watch out for in the UAE in 2023

Construction & Real Estate:

While construction has always been the most happening sector in the country, there is a heightened interest in buying property among expats and investors. The UAE’s efficient tackling of the pandemic as opposed to many countries in the West has prompted many Western investors to shift business to the country and enjoy its tax-free regime and sunny weather. That investors get a Golden Visa if they buy a property worth AED 2 million is the cherry in the pie.

Tourism and hospitality:

Tourism has bounced back, with Dubai attracting people like a magnet to gaze at its many wonders from the iconic Burj Khalifa to the spanking new Museum of the Future. Between January and November 2022, Dubai welcomed 12.82 million overnight visitors with the highest number of visitors – 1.6 million – arriving from India. Things are only going to get better in 2023 with COP28 predicted to welcome nearly 100,000 people. Abu Dhabi and the northern emirates have their myriad attractions too – such as Sharjah’s many cultural events or the capital city’s mangroves, Ferrari World and Louvre Museum.

The work-from-home culture in the wake of the pandemic has come to stay, and so is the need for living spaces that provide greater comfort as workspaces too. Dubai, Sharjah and Abu Dhabi in particular are witnessing villa projects in all-inclusive communities with parks, gyms, schools and hospitals. From ultra-luxury to budget residential townships that focus on being environment-friendly and sustainable, the various emirates are changing their landscape into one big green oasis. Emaar and Nakheel in Dubai, Arada and Alef in Sharjah and Aldar Properties in Abu Dhabi are among the prominent developers. In Dubai, prices have ranged from AED 1.3 million to 410 million.

Hospitality is an Emirati hallmark, and the UAE’s numerous hotels and resorts are a statement in luxurious living, dining and recreation. Dubai’s Atlantis the Royal has joined this pantheon of world-class hospitality this year, and visitors will be spoilt for choice as they arrive en masse. This has increased the demand of tourism license for travel agents in Dubai.

Healthcare & Medical tourism:

Forecasts suggest that the Healthcare industry is expected to boom throughout 2023. Its hospitals and clinics offer the best facilities, infrastructure and medical personnel. Mandatory insurance have helped residents make best use of the facilities and stop sickness in its tracks.

Medical tourism to the UAE has been popular for nearly a decade, and the emirates of Dubai and Abu Dhabi in particular are gearing up to meet the rising demand for quality healthcare. The increasing costs of healthcare in the West is expected to bring more medical tourists this year.

Education:

The UAE places utmost importance in providing quality education through its schools and colleges. Foreign universities as well as homegrown ones provide a wholesome atmosphere for learning, research and interaction. Prospective students from Asian and African countries are flocking to the UAE to receive world-class coaching in its safe and multicultural environment. State-of-the-art infrastructure and quality lifestyle are factors that make them choose UAE universities.

E-commerce:

There is a greater reliance on online purchases in the post-pandemic world owing to the increasing use of technology and wider Internet usage. While more and more domestic retail outlets have online shop offering attractive discounts, overseas vendors like Amazon help customers procure international products at reasonable prices. E-commerce is also a safe domain for entrepreneurs and startups to launch business at a fraction of the cost of brick-and-mortar stores. At A&A Associate, we help you get a business license in Dubai to carry out commercial activity in the Dubai, UAE.

In short, 2023 promises to be an exciting year for the UAE economy. With major industries and their allied sectors set to perform amazingly well, business setup in UAE has never been this easy whether it is in the free zone, mainland or off-shore areas.