RESTRICTED  
  
WT/TPR/G/423  
15 February 2022  
(22-1375) Page: 1/21 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
UNITED ARAB EMIRATES  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by  the 
United Arab Emirates  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the United Arab Emirates . WT/TPR/G/423 • United Arab Emirates  
 
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  Contents  
1   ECONOMIC DEVELOPMENT  ................................ ................................ .........................  4 
2   MACROECONOMIC GROWTH  ................................ ................................ .......................  4 
3   TRANSFORMING THE UAE ECONOMY  ................................ ................................ ..........  6 
3.1   The UAE Trend Towards the Future Economy  ................................ ................................ . 6 
3.2   The UAE Trend Towards a Digital Economy  ................................ ................................ .... 6 
3.3   The UAE Trend Towards a Circular Economy  ................................ ................................ .. 6 
3.4   The UAE Trend Towards a Green Econom y ................................ ................................ ..... 7 
4   ECONOMIC DIVERSIFICATION  ................................ ................................ ...................  7 
4.1   General Approach to Economic Diversification  ................................ ................................  7 
4.2   Diversifying the UAE Economy through Pioneering Space Endeavours  ...............................  7 
4.3   Export Development Strategies and Prog rams ................................ ................................  8 
5   FISCAL POLICY  ................................ ................................ ................................ ...........  8 
6   MONETARY POLICY  ................................ ................................ ................................ .... 9 
7   TRADE POLI CY DEVELOPMENTS  ................................ ................................ ...............  10 
7.1   Bilateral Agreements  ................................ ................................ ................................ . 10 
7.1.1    Investment Treaties and Double Taxation Agreements  ................................ ...............  10 
7.2   Regional Agreements  ................................ ................................ ................................  10 
7.3   Gulf Cooperation Council (GCC)  ................................ ................................ ..................  10 
7.3.1    Free Trade Agreements  ................................ ................................ ..........................  10 
7.4   Greater Arab Free Trade Area (GAFTA)  ................................ ................................ ........  11 
8   SECTORAL DEVELOPMENTS  ................................ ................................ ......................  11 
9   UAE PARTICIPATION IN INTERNATIONAL ORGANIZATIONS AND AGREEMENTS  ...... 12 
9.1   Paris Agreement On Climate Change  ................................ ................................ ...........  12 
9.2   Madrid Protocol for the International Registration of Trademarks  ................................ .... 12 
9.3   Group of Twenty (G20)  ................................ ................................ .............................  12 
9.4   UAE Contribution to Enhance the Multilateral Trading System  ................................ ........  13 
10   INVESTMENT IN THE UAE  ................................ ................................ .......................  14 
10.1   UAE Investment Environment  ................................ ................................ ...................  14 
10.2   UAE Investment Framework  ................................ ................................ .....................  14 
10.3   UAE Investment Strategies  ................................ ................................ ......................  15 
10.3.1    National Agenda For Inward Foreign Direct Investment  ................................ .............  15 
10.3.2    National Agenda for Outward Foreign Direct Investment  ................................ ...........  15 
11   REFORM AND MODERNIZATION OF ECONOMIC LEGISLATION  ................................  15 
12   PROGRESS AND FUTURE DIRECTION  OF THE UAE  ................................ ..................  16 
12.1   Aviation  ................................ ................................ ................................ .................  16 
12.2   Future Energy  ................................ ................................ ................................ ........  16 
12.2.1    Enabling Sustainability through the National Energy Strategy  ................................ .... 16 
12.2.2    Hydrogen Leadership Roadmap  ................................ ................................ ..............  16 
12.2.3    Renewable Energy  ................................ ................................ ...............................  16 WT/TPR/G/423 • United Arab Emirates  
 
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  12.3   Technology  ................................ ................................ ................................ ............  17 
12.3.1    5G Services  ................................ ................................ ................................ .........  17 
12.3.2    Artificial Intelligence  ................................ ................................ .............................  17 
12.4   Workforce  ................................ ................................ ................................ ..............  18 
12.5   Small and Medium Enterp rises ................................ ................................ ..................  18 
12.6   Health  ................................ ................................ ................................ ...................  18 
12.7   Tourism  ................................ ................................ ................................ .................  19 
13   GENDER BALANC E ................................ ................................ ................................ .. 19 
14   RESPONDING TO COVID -19 PANDEMIC  ................................ ................................ .. 19 
14.1   Government Measures  ................................ ................................ .............................  19 
14.2   Leveraging Artificial Intelligence  ................................ ................................ ...............  20 
15   UAE INSIGHTS  ................................ ................................ ................................ ....... 21 
15.1   Economic Recovery  ................................ ................................ ................................ . 21 
15.2   New Partnerships for Global Progress  ................................ ................................ ........  21 
 
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  1  ECONOMIC DEVELOPMENT  
1.1.  The United Arab Emirates is characterized by a stable economic, political and investor -friendly 
environment, and has sustained economic growth despite recessions in the global economy, 
fluctuations in oil prices, and the impact of the COVID -19 pandemic.  
1.2.  The country's economic priorities are geared towards achieving rapid economic recovery and 
restoring growth rates in accordance with a gradual and deliberate path of t ransformation towards 
a knowledge -based economy. The UAE's transition to the future will be enabled by investment into 
new technologies, new residency policies to attract and retain high caliber human capital, and more 
liberalized economic policies to enha nce the competitiveness of the country's business environment.  
1.3.  In pursuit of achieving its national economic goals, the UAE is working to formulate and develop 
effective pioneering strategies and economic initiatives based on international best practices a nd 
standards and a balance between present -day economic realities and the outlook for future 
prospects, whether at the State level or at regional and global levels.  
1.4.  The UAE continues to strive towards achieving its long -term vision, that is, to become one of 
the best countries in the world by 2071 as measured by several indexes. This vision is known as the 
"UAE Centennial 2071", which includes four main pillars: a future -focused government; excellent 
education offerings; a diversified knowledge economy; and  a more cohesive society. To achieve this 
vision, long -term innovative initiatives and projects have been strategized and implemented. These 
strategic plans, also known as the "Projects of the 50", define the road map that government entities 
must implemen t to achieve the UAE Centennial 2071.  
1.5.  The UAE's current initiatives build upon previous long -term plans and strategies. In 2021, for 
example, the UAE concluded the successful implementation of the "National Agenda 2021", which 
aimed to place the UAE among  the top 10 countries in the world based on national indicators across 
different areas such as the economy, education, and technology, among others. This national plan 
was implemented from 2017 to 2021. The UAE's efforts resulted in an improved standing ac ross 
many economic indicators. The UAE was successful in increasing the value of foreign direct 
investment to the UAE in 2020 to USD  19.9 billion, reflecting a growth of 11.1%.  
2  MACROECONOMIC GROWTH  
2.1.  As the primary regional hub for trade, logistics and tour ism, the UAE's economy was, like other 
countries, affected by the repercussions of the pandemic. However, the Central Bank UAE projected 
real GDP growth to reach 2.4% in 2021, with non -oil GDP growth projected to increase by 3.8%. In 
2022, Central Bank UAE  forecasts a full recovery, with overall real GDP increasing by 3.8%, while 
the non -oil real GDP rising by 3.9%.  
2.2.  The UAE's GDP at constant price in 2019 was recorded at USD  411,601 million when compared 
to USD  398,022 million in 2018. The UAE's GDP growth rate at constant 2010 price was 3.4% in 
2019 when compared to 1.2% in 2018.  
2.3.  The UAE's overall non -oil GDP at constant price was USD  291,836 million in 2019, compared 
to USD  281,268 million in 2018 with a growth rate of 3.8%.  
2.4.  In 2019, the overall GDP decre ase at current price was at 1.2%. Over the past three years, 
non-oil GDP growth has surpassed the overall GDP growth, which clearly indicates the UAE's 
diversification of its economy away from the oil and gas sector. The oil and gas sector's contribution 
to GDP at current price in 2019 dropped down to 22.7% from 26.0% in 2018.  
2.5.  The Ministry of Energy and Infrastructure has announced that fuel prices across the UAE were 
deregulated as of August 1, 2015, thereby adopting a new policy linked to global prices. T he Ministry 
of Energy and Infrastructure and the Ministry of Finance act as the UAE Government's 
representatives in a committee established to review fuel prices in the UAE on a monthly basis.  
2.6.  The UAE Government remains positive on the UAE's economic outl ook despite the sharp fall in 
global oil prices as its diversification policy mitigated the impact of declining oil prices on the 
economy.  WT/TPR/G/423 • United Arab Emirates  
 
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  2.7.  Foreign trade in general has been a significant driver for the UAE's economic growth. In 2020, 
the total value of the UAE's non -oil foreign trade reached USD  407 billion compared to 
USD 464.3  billion in 2019 (a 12% decrease). The slowdown in the global economy has also resulted 
in limited growth in foreign trade. The total value of the UAE's non -oil exports in 2020 re ached 
USD 72.3 billion, growing by 10% compared to 2019. The total value of the UAE's imports during 
the same period reached USD  224 billion (a 14% decrease). The UAE's top 10 trading partners in 
2020 were the People's Republic of China, the Kingdom of Sau di Arabia; India; the United States; 
Iraq; Switzerland; the Sultanate of Oman; Italy; Japan; and Hong Kong, China.  
2.8.  During the first 10 months of 2021, the UAE has witnessed a strong recovery in its foreign 
trade sector, which grew by 27% compared to the sa me period in 2020.  
2.9.  The following sectors contributed to the UAE's GDP at constant price in 2020:  
• Mining and Quarrying (includes crude oil and natural gas): 29.1%;  
• Wholesale retail trade and repairing services: 12%;  
• Real estate and business services: 10.9 %; 
• Manufacturing and Industry: 8.8%;  
• Transport, storage and communication: 8.4%;  
• Construction: 8.3%;  
• Electricity, gas and water: 3.0%;  
• Social and personal services: 2.1%;  
• Accommodation and food service activities: 1.8%; and  
• Agriculture, livestock and fishi ng: 0.8%.  
2.10.   In 2020, the UAE's inward foreign direct investment stock was USD  150.9 billion and the 
outward stock for the same period was USD  203.7 billion. There has been a noticeable growth of 
inward investment when compared to USD  131,011 billion recorded  in 2019 (reflecting a 15.2 % 
growth). On the other hand, the outward growth for the same period was 10.2%. The value of 
inward foreign direct investment into the UAE increased by USD  2.01 billion in 2020, with a growth 
rate of 11.24%. As a result, in 2020  the UAE advanced nine ranks to become 15th globally for 
attracting foreign direct investment according to the UNCTAD World Investment Report issued in 
June 2021.  
2.11.   The UAE continues to be a major driver for foreign direct investment within the global 
econo my. Some noteworthy statistics reflect that the UAE ranked first in foreign direct investment 
inflows to West Asia in 2020, as it accounted for 54.4% of the total inflows into the region, amounting 
to USD  36.547 billion. The UAE also ranked first in foreig n direct investment inflows to the Middle 
East and North Africa region in 2020, accounting for 40.2% of the total inflows into the region, which 
amounted to USD  49.4 billion. Finally but not least, the UAE ranked first in the inflow of foreign 
direct inves tment from the Arab Gulf countries in 2020, as it accounted for 49.1% of the total inflows 
to the region, amounting to USD  40.46 billion.  
2.12.   The sectors strategically targeted for inward foreign direct investment in the UAE include 
financial services, technol ogy, industry, healthcare, pharmaceutical and life -sciences, retail and 
e-commerce, medical tourism, space and space tourism, supply chains and logistics, agritech, 
entertainment, broadcasting and games, education and its associated technologies, renewable  
energy, information and communications technology , hydro -technology, smart mobility and artificial 
intelligence.  
2.13.   The UAE views free trade as an important and necessary means for increased competitiveness 
and productivity. It is the UAE's belief, that prot ectionism, manifested by high tariff barriers and WT/TPR/G/423 • United Arab Emirates  
 
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  technical barriers to trade, will only result in a stagnant and innovation -lacking private sector. It is 
in this spirit that the UAE has executed free trade agreements with several Arab Gulf Countries, 
GAFT A, EFTA and Singapore, and continues to pursue negotiations under the GCC umbrella to 
establish free trade agreements with global partners.  
3  TRANSFORMING THE UAE ECONOMY  
3.1  The UAE Trend Towards the Future Economy  
3.1.  In support of its objectives to transition fro m a hydrocarbon -based economy to a knowledge -
based economy, the UAE has launched a number of strategic initiatives to achieve sustainable 
economic growth based on applied sciences and advanced technologies and enhance its position as 
a global hub for innov ation, artificial intelligence and entrepreneurship  . 
3.2.  Notable  achievements have been made over the past five years, as embodied in the growth of 
the UAE's future -focused sectors. For instance, the information and communications technology 
sector witnessed a  cumulative growth rate of 32% from 2014 to 2020, representing an average 
annual growth rate of 5%. Similarly, the education and professional sector, and the science and 
technology sector posted a cumulative growth of 75% and 12% respectively, achieving an  average 
annual growth rate of 10% and 2% respectively. The manufacturing industries sector grew at an 
average annual rate of 3.4% over the same period. These sectors combined represented nearly 23% 
of the UAE's actual GDP in 2020.  
3.2  The UAE Trend Towards a Digital Economy  
3.3.  The UAE Leadership has long recognized the contribution of the digital economy to the economy 
as a whole and its role in supporting the competitiveness of the UAE in all economic sectors. This 
recognition  has manifested by the ado ption of national strategic plans to accelerate the UAE's 
development of its digital economy.  
3.4.  The UAE, through its Fourth Industrial Revolution and National Cybersecurity Strategy, aims to 
harness and create a safe infrastructure for cutting -edge technolog ies, such as blockchain 
technology in financial services and transactions, to enable its digital transformation. These efforts 
compliment a series of earlier initiatives from 2001, where specialized free zones such as Dubai 
Media City, Dubai Internet City,  and Dubai Knowledge City (among others) were launched to build 
and develop eco -systems conducive towards digital transformation and an overall digital economy.  
3.5.  The UAE's digital economy contribution to the GDP at present day is approximately 4.3% and 
the UAE aims to double this percentage by 2031.  
3.6.  The UAE's digital transformation infrastructure and measures developed in the UAE prior to 
2020 significantly assisted in addressing challenges borne from the COVID -19 pandemic. The use of 
highly advanced system s, artificial intelligence, geospatial technologies, vaccine management 
systems and technologies and a digitally agile Government provided the UAE with a competitive 
edge in ensuring business continuity among the public and private sectors.  
3.7.  As a result of the UAE's efforts to increase its digital competitiveness, the country ranked 10th 
in the World Digital Competitiveness Ranking 2021 issued by the IMD World Competitiveness Center 
(WCC) of the International Institute for Management Development (I MD). The UAE was ranked 1st 
globally in four indexes, one of them being "Cybersecurity".  
3.3  The UAE Trend Towards a Circular Economy  
3.8.  The UAE is one of the leading countries in the world when it comes to adopting concepts of the 
circular economy. Following the  signing of various cooperation and international agreements in 2019 
and in July 2020, the UAE Council on Circular Economy was formed to oversee the country's circular 
economy initiatives, indicating the UAE's commitment to environmental protection, sustai nability 
and private sector collaboration to further enable the adoption of clean consumption and production 
practices.  WT/TPR/G/423 • United Arab Emirates  
 
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  3.9.  In January 2021, the UAE Cabinet approved the "UAE Circular Economy Policy", which is a 
comprehensive framework for identifying circular  economy priorities, achieving sustainable 
governance and ensuring the efficient use of natural resources through the adoption of sustainable 
consumption and production methods.  
3.10.   The policy focuses on enabling the circular economy in four key sectors: (1) sustainable 
manufacturing; (2) green infrastructure; (3) sustainable transportation; and (4) sustainable food 
production and consumption. Currently, the UAE Government is engaged with strategic domestic 
and international partners to implement the policy.  
3.11.   In line with the above, the UAE is the first signatory of the World Economic Forum Scale360 
initiative aimed at fast -tracking the adoption of fourth industrial revolution technologies for the 
circular economy. Through its Scale360 national chapter, the UAE  is implementing projects and 
programs that deliver circular innovation, ensure the conservation of natural resources, and reduce 
pollution to tackle climate change.  
3.4  The UAE Trend Towards a Green Economy  
3.12.   In efforts to achieve the Sustainable Development Go als under the UN 2030 Agenda, the UAE 
has made a commitment to ensuring a sustainable future for generations through adopting green 
policies and initiatives. For example, the UAE adopted the green economy methodology as a path of 
sustainable development th rough the "Emirates Sustainable Development Strategy".  
3.13.   Through the strategy, the UAE aims to become a global hub and successful green economy 
model by creating a center for the export and re -export of green products and technologies and 
maintaining a susta inable environment to support long -term economic growth while protecting the 
environment.  
3.14.   The strategy includes a range of programs and policies that promote the production and use 
of clean energy, encourage investment in the green economy, help to integra te the environment in 
urban planning, maintain biodiversity and the ecological balance, and conserve the use of natural 
resources.  
4  ECONOMIC DIVERSIFICATION  
4.1  General Approach to Economic Diversification  
4.1.  In preparation for a post -oil future, the UAE has trans formed itself into a global model for 
economic diversification. This is evidenced by the advanced positions the UAE has taken in global 
trade as witnessed by highly regarded international organizations.  At the top of this list is the World 
Trade Organizati on, which ranked the UAE 20th globally in its 2021 report among a list of countries 
exporting and importing goods, 3rd globally in re -exports and 1st in the Arab Gulf.  
4.2.  Today, the UAE's non -oil sectors contribute more than 70% to the country's GDP. During t he 
first half of 2021, t he total value of the UAE's non -oil exports rose to USD  46.30 billion, achieving a 
44% growth compared to the same period in 2020, while the value of imports during the first half 
of 2021 exceeded USD  131 billion, achieving a 24% gr owth compared to the same period in 2020.  
4.2  Diversifying the UAE Economy through Pioneering Space Endeavours  
4.3.  As the UAE transitions towards economic diversification, the country is developing its space 
sector at local, regional and global levels through vari ous initiatives and public -private partnerships. 
The UAE's space sector is expected to play an important role in the UAE's future economy and serve 
as a leading contributor to the development of the global space economy.  
4.4.  In 2016, the "UAE's National Space Policy" was launched, outlining priorities and goals to be 
achieved within the space domain. Additionally, in 2019, the National Space Strategy 2030 was 
launched to set the general framework of the space industry in the UAE for the next decade.  
4.5.  In October  2021, the UAE Space Agency announced the launch of its "Space Economic Zones 
Program" to facilitate public -private partnerships in the UAE's space sector and build an attractive WT/TPR/G/423 • United Arab Emirates  
 
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  and integrated business environment to meet local and global demands. The pro gram will stimulate 
innovation and adopt space technology in commercial space ecosystems supporting the 
establishment of startups and increasing their commercialization potential.  
4.6.  The Emirates Mars Mission "EMM" (Hope Probe), launched successfully on 20 July 2020, 
(1:58  AM GMT+4) onboard a Japanese rocket and arrived successfully in orbit around Mars on 
9 February 2021. The Emirates Mars Mission (EMM) is the UAE's first mission to Mars.  
4.7.  On 22 March 2021, the UAE's first nanometric environmental satellite, DMSat -1, was 
successfully launched and deployed. It was developed by the Dubai Municipality in collaboration with 
the Mohammed Bin Rashed Space Centre (MBRSC). The satellite monitors air quality and greenhouse 
gas (GHG) emissions. It also detects the sourc e of air pollutants and concentration of dust and its 
impact on public health in the UAE. The information provided by the satellite will help in determining 
the measures needed to combat climate change and develop long -term environmental plans.  
4.8.  In October 2021, the UAE hosted the 72nd International Astronautical Congress (IAC), the 
world's premier space event held in the Middle East for the first time ever. More than 6,500 space 
enthusiasts and participants from over 110 countries attended the five -day even t filled with 
meetings, collaborations, announcements, updates and more.  
4.9.  In order to achieve its future economy based on advanced technologies, the UAE launched the 
Emirates Research and Development Council in October 2021. The Council aims to enhance UAE  
investments in advanced technologies and strengthen the performance and effectiveness of the 
UAE's science and technology sector.  
4.3  Export Development Strategies and Programs  
4.10.   In 2020, the UAE Cabinet approved the country's export development policy to incre ase UAE 
exports and open new international markets. The policy is a long -term vision for the UAE's foreign 
trade ambitions, enabling the national economy to benefit from opportunities of the economic 
recovery expected in the current and future years.    
4.11.   In addition, the UAE launched the National Strategy for Industry and Advanced Technology 
Operation 300bn to further promote economic diversification and increase the industry's contribution 
to the UAE economy from AED  133 billion (USD  36.2 billion) to AED  300 billion (USD  81.69  billion) 
by 2031.  
4.12.   The UAE also recently introduced the "10x10 Program" that aims to develop and increase the 
UAE's annual exports by 10% in 10 key global markets of strategic importance to the UAE.  
5  FISCAL POLICY  
5.1.  The Ministry of Finance continues to adopt legislative reforms and has enacted 27 federal laws 
from 2006 to 2020 to regulate the financial sector in the following areas:  
• revenues and public expenditures;  
• the federal budget;  
• economic substance regulations;  
• bankruptcy and insolvency;  
• taxation legislations;  
• anti-money laundering (AML) and combatting financial terrorism (CFT);  
• guaranteeing rights to movable property;  
• financial leasing;  WT/TPR/G/423 • United Arab Emirates  
 
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  • credit information;  
• netting; and  
• organization of financial institutions and act ivities.  
5.2.  The federal budget for the financial year 2020 was approved with a value of AED  61.35 billion 
(USD  16.71 billion) (the largest in UAE history and without a deficit), where it increased by 50% 
between 2011 and 2020.  
5.3.  Between 2006 and 2020, the Minis try of Finance concluded (234) bilateral agreements with 
Arab and foreign states for the avoidance of double taxation and the reciprocal protection and 
promotion of investments.  
5.4.  The UAE Government successfully established a tax system and created a primary  source for 
revenues in line with international best practices and this system contributes in providing sustainable 
revenues allowing the UAE to maintain its economic stature and the quality of the business and 
investment environment within it.  
5.5.  The UAE for med the Public Debt Management Office following the enactment of Federal Decree 
Law No. (9) of 2018 on Public Debt. The UAE's efforts and subsequent financial policies have led to 
the UAE being ranked highly in its credit rating by well -established interna tional institutions. In 
November 2020, the UAE received a rating of "AA -", an "Outlook Stable" from Fitch Rating, and in 
December 2020 received the rating of an Aa2 in creditworthiness, with a stable outlook for the 
national economy by Moody's.  
6  MONETARY PO LICY  
6.1.  As per the UAE Central Bank's main objective to maintain stability in the UAE dirham against 
the US dollar, monetary policy in the UAE is largely aligned to that prevailing in the US. Specifically, 
this means that the UAE's main policy rate, the Base Rate, is aligned to the US Federal Reserve's 
Interest on Reserve Balances rate. To that end, prevailing monetary policy in the UAE has been 
highly accommodative since the onset of the COVID -19 pandemic, with low interest rates providing 
much needed support  for recovery.  
6.2.  In January 2020, the UAE Central Bank announced its new Dirham Monetary Framework and 
has since been in the process of implementation. The framework does not affect the foreign 
exchange rate in any way, but rather, involves consolidation an d modernization of liquidity 
management within the UAE markets, and seeks to encourage capital market development and 
improve transparency. This has seen the announcement of a number of recent initiatives, including 
the development of the "Overnight Deposi t Facility". Remunerated at the Central Bank's Base Rate, 
the deposit facility provides a transparent anchor for short -term interest rates in the domestic 
market. Similarly, the implementation of Monetary Bills auctions in early 2021 has formed an 
importan t first step in developing a domestic currency denominated risk -free yield curve.  
6.3.  Based on available indicators up to the end of Q2 2021, banks operating in the UAE remain 
well capitalized with adequate capital buffers and average capital adequacy ratio, l argely exceeding 
the UAE Central Bank minimum thresholds. The financial system remains liquid, reflected by the well 
performing liquidity ratios including the share of credit to stable resources, in addition to banks' 
assets at the Central Bank that may be  tapped into for additional liquidity (if so required). Further, 
indicators of financial soundness continue to bode well for the ability of the banks to support growth 
of credit while promoting and maintaining financial stability. All encompassing, the ove rall outlook 
of the banking system remains positive.  WT/TPR/G/423 • United Arab Emirates  
 
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  7  TRADE POLICY DEVELOPMENTS  
7.1  Bilateral Agreements  
7.1.1   Investment Treaties and Double Taxation Agreements  
7.1.  The UAE maintains large networks of bilateral investment treaties (BITs) and Double Taxation 
Agreements ( DTAs), which it continues to expand to encourage strategic global partnerships. In 
total, the UAE has signed 101 BITs, of which 70 are in force. Currently, the UAE has 135 DTAs, of 
which 104 are in force. The UAE is also a signatory to the Multilateral Con vention to Implement Tax 
Treaty -Related Measures to Prevent Base Erosion and Profit Shifting since June 2018.  
7.2  Regional Agreements  
7.3  Gulf Cooperation Council (GCC)  
7.2.  The UAE became a founding member of the Gulf Cooperation Council (GCC) on 25 May 1981, 
alongside Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia.  
7.3.  The Unified Economic Agreement, signed on 11  November  1981 under the GCC led to the 
elimination of customs duties and other restrictive regulations of commerce on all trade between the 
members of the GCC in the products originating in the member states, and work was proceeding to 
further harmonize trade and commercial policies.  
7.4.  In December 2001, the GCC Economic Agreement was signed to provide for a GCC Customs 
Union, and the harmonizati on of economic, financial, and monetary policies, with a view to achieve 
more economic integration through the establishment of the Gulf Common Market (GCM).  
7.5.  The GCC Customs Union was established and has been operative since the beginning of 
January  2003. GCC member states have been applying the GCC common tariff ever since. The rates 
for more than 89.1% of the common tariff lines were 5%, while 10.4% of the tariff lines had a 
common tariff of 0%. Moreover, 0.2% of the tariff lines had a rate of 50%, while the remaining 
0.3% of the tariff lines had a rate of 100%. The Common Customs Law of the GCC entered into 
force on 11  January  2015.  
7.6.  In implementation of the Supreme Council's resolution issued by the GCC in its 28th session 
(on 4  December 2007), the Gulf C ommon Market (GCM) was launched with effect from 
1 January  2008 and was a landmark development in the advancement of the Gulf Economic 
integration. The aim of the GCM is to create a single market through which provides the citizens of 
the GCC countries wit h greater access to opportunities available in the Gulf economy, enabling 
greater foreign investment, maximizing the benefits of economies of scale and efficiency in 
production, achieving the optimum utilization of available resources, strengthening the ne gotiating 
power of GCC countries, and enhancing its position among international actors and economic blocks.  
7.7.  On the liberalization of services within the GCC, the Supreme Council liberalized trade in 
services for roughly 100 subsectors of services, includi ng professional services, most business 
services, telecommunication services, banking and other financial services, distribution services, 
education services, environmental services, health and related social services and tourism services. 
The GCC members agreed to progressively liberalize other services sectors and subsectors.  
7.3.1   Free Trade Agreements  
7.8.  In 2005, the GCC commenced negotiations to establish free trade agreements with a number 
of countries including China, India, Pakistan, Japan, Korea, New Zealan d, Australia, Turkey, EFTA 
States, Singapore, EU and the Southern Common Market (MERCOSUR). The scope of these 
negotiations covered market access for goods and services, and in some cases, government 
procurement and included chapters on intellectual proper ty, investment and competition.  
7.9.  Free trade agreements with GCC -EFTA and GCC -Singapore were concluded and entered into 
force in 2015. The GCC has ambitious plans to negotiate free trade agreements with other countries.  WT/TPR/G/423 • United Arab Emirates  
 
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  7.4  Greater Arab Free Trade Area (GAFTA)  
7.10.   The UAE is a member of the Greater Arab Free Trade Area (GAFTA), which was signed on 
19 February 1997, and entered into force on 1  January 1998. This agreement has eliminated all 
tariffs among its members from 1  January 2005. The agreement covers trade in g oods only; 
however, members have been engaged for the past few years in negotiations to create an agreement 
in trade in services.  
7.11.   During the review period, GAFTA members continued to engage in the "Beirut Round of 
Negotiations on the Liberalization of Trad e in Services among Arab States", which launched in 2004 
and ended in February 2017. The UAE along with nine other GAFTA countries agreed on a schedule 
of commitments for trade in services.  
7.12.   This agreement aims to create a legal framework for the gradual li beralization of trade in 
services between Arab countries and to create an enabling environment for the development and 
facilitation of trade in services among them. The UAE signed the agreement on 29  January  2019 and 
ratified it on 10  March 2020.  
8  SECTORAL DEVELOPMENTS  
8.1.  UAE's GDP at current price was at USD  417.2 billion in 2019, USD  422.2 billion in 2018, 
compared to USD  385.6 billion in 2017. Over the past 20 years, the UAE's GDP grew significantly, 
as the current size of its GDP is four times its size from  2001. Current GDP grew positively and 
steadily almost every year over the past 15 years and is around 1.5 times its size in 2010. As per 
World Bank figures released in 2019, the UAE is the 30th largest economy globally, representing 
0.52% of total global GDP. Whereas, the UAE's GDP at constant price in 2019 stood at 
USD 411.6  billion when compared to USD  398 billion in 2018.  
8.2.  The UAE's GDP at constant price grew by 3.4% in 2019 when compared 1.2%  in 2018 and 
2.4% in 2017. The UAE's real GDP recorded a cumulative annual growth rate (CAGR) of 3.6% in the 
last 10 years and the UAE's real non -oil GDP recorded a cumulative annual growth rate (CAGR) of 
3.9% in last 10 years ago. Despite low oil prices g lobally, the UAE is well positioned to withstand 
the lower oil price environment thanks to its comparatively diverse economy and strong forex 
reserves.  
8.3.  Oil and gas contributes less than 30% of the UAE's total real GDP. The manufacturing sector is 
playing a n increasingly vital role in driving UAE economic expansion and diversification, accounting 
for 9% of its GDP. The main pillars of UAE industry are petrochemicals, aluminum and steel but the 
automotive sector, chemicals, cement, electrical machinery, power  equipment and food processing 
continued to gain momentum in the past few years, as partnerships with foreign enterprises and 
joint ventures allowed industrial and manufacturing companies to benefit from the most up -to- date 
technologies. There has also be en strong growth in biotechnology, pharmaceuticals, 
telecommunications equipment, aerospace and healthcare equipment. Tourism remains a key driver 
of economic growth in the UAE and sits at the heart of all seven emirates' diversification plans. Over 
the pa st decade, the industry has contributed to and benefited from the rise of other high -growth 
sectors in the economy, such as retail and aviation.  
8.4.  Driven mainly by rising trade and tourism activity, the UAE has also taken great strides toward 
becoming a regi onal hub for transport and logistics, and for the global travel industry. The country 
is currently constructing and expanding several port and airport facilities, as well as roads and a 
nationwide rail network.  
8.5.  The UAE real estate and construction sector i s showing strong signs of recovery after the 
property slowdown caused by the global financial crisis in 2009. According to 2019 statistics, the 
real estate and construction sector accounts for around 14.2% of the UAE's GDP. The country's 
economic and polit ical stability has seen it emerge as a safe haven for international investors during 
regional turmoil in recent years, a trend that has played an important part in keeping the real estate 
sector on track.  
8.6.  In 2019, the financial and insurance activities sec tor was a key growing sector that expanded 
by 3% when compared to 2018 and the banking and finance industry has maintained its position as WT/TPR/G/423 • United Arab Emirates  
 
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  one of the leading contributors to the economy. The UAE's financial sector is one of the most 
developed and is the la rgest in MENA region. The financial sector comprises of retail and corporate 
banks, insurance companies, investment banks, asset management companies, foreign exchange 
companies, wealth management companies and financial advisory firms. The financial and i nsurance 
sector contributes to more than USD  32.6 billion (at constant prices 2010) in 2019 when compared 
to USD  32.4 billion in 2018. The financial sector registered a growth of 0.4% at constant price and 
its sectorial contribution to the UAE's GDP was ar ound 8% in 2019. In 2010, the financial sector 
contribution to the UAE's GDP was slightly less than 6.9% and it has increased steadily to more than 
8.0% in 2019.  
8.7.  As of end -December 2020, there were 21 local banks, financial institutions, and 37 foreign 
banks operating in the UAE, which include 10 Islamic banks. There are a further 122 representative 
offices of foreign banks in the UAE, including 26 finance companies, 25 investment companies and 
141 foreign exchange companies.  
9  UAE PARTICIPATION IN INTERNATIO NAL ORGANIZATIONS AND AGREEMENTS  
9.1  Paris Agreement On Climate Change  
9.1.  In line with the 2015 Paris Agreement on climate change, numerous countries recently 
enhanced its national commitments to cut carbon emissions, including the UAE.  
9.2.  In this context, the Minis try of Energy and Infrastructure announced the Hydrogen Leadership 
Roadmap, a comprehensive national blueprint to support domestic, low -carbon industries, contribute 
to the country's net -zero ambition and establish the country as a competitive exporter of hydrogen. 
The roadmap's ambitions underscore the UAE Leadership's enduring legacy of progressive solutions 
to global climate challenges, as recently demonstrated by the announcement of UAE's Net Zero by 
2050 Strategic Initiative (the "Net Zero Initiative") . The UAE became the first country in the Middle 
East and North Africa region to announce a net zero strategic initiative by 2050 in line with the Paris 
Agreement.  
9.3.  The UAE is preparing to host UN Climate Change Conference (COP28) in 2023 to showcase its 
achievements on climate change and encourage greater collaboration on climate action among 
countries and international actors.  
9.2  Madrid Protocol for the International Registration of Trademarks  
9.4.  The UAE recently announced its accession to the Mad rid Protocol for the International 
Trademarks Registration, which is a system under the World Intellectual Property Organization that 
will expand trademark protection in more than 124 member states using a single application. The 
UAE's accession to the Mad rid Protocol comes as an important step following the UAE's accession in 
early 2021 to the Budapest Treaty and the Strasbourg Agreement with the aim of developing an 
environment conducive to innovation, research and development and consolidating it as engi nes for 
building the future economy.  
9.5.  The UAE's efforts in this direction are continuing within the framework of its leadership's vision 
and the plans and Projects of the 50, most notably the recent update of a new industrial property 
law (relating to paten ts, designs and utility models).  
9.6.   The UAE introduced new Intellectual Property Decree -laws on copyright and trademarks in 
2021. The laws aim to enhance the country's position as a leading regional center in all intellectual 
property applications and stimul ate its contribution to attracting qualitative foreign investment, 
improving performance and increasing productivity in all sectors.  
9.3  Group of Twenty (G20)  
9.7.  In 2020, the UAE was invited as a guest nation to participate in the G20 Riyadh Summit, the 
timing o f which coincided with the outbreak of the COVID -19 pandemic. As part of its participation 
in G20, the UAE was able to help shape the world's response to the pandemic by sharing its 
experiences and best practices. Key highlights of UAE's participation in t he G20 and in the wake of 
COVID -19 may be summarized as follows:  WT/TPR/G/423 • United Arab Emirates  
 
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  • The UAE released economic stimulus and relief packages amounting to over 
USD 77 billion;  
• The UAE Government incentivized investment in key areas such as critical medical supplies 
and equipm ent, and sustainable agriculture production as well as facilitated the entry of 
essential agricultural products with minimal requirements procedures;  
• The UAE imposed a policy requiring pre -approval of COVID -19-related medical supplies 
exports to ensure the ir availability in the local market. The UAE also ensured the flow of 
vital medical supplies, critical agricultural products, and others goods and services across 
borders by expanding its mapping exercise of alternative markets to avoid shortages and 
diversify sources of essential goods; and  
• The UAE also participated in the Joint Ministerial Statement by a group of countries 
affirming their commitment to ensuring supply chain connectivity amidst the COVID -19 
pandemic.  
9.8.  In 2021, the UAE was invited as a guest  nation to participate in G20 hosted by the Indonesian 
Presidency.  
9.4  UAE Contribution to Enhance the Multilateral Trading System  
9.9.  The UAE participates actively and constructively in multilateral discussions through the WTO. 
The UAE is a strong supporter of t he multilateral trading system and works with member countries 
to ensure a more efficient, open, free, inclusive and relevant trading system and improve the 
negotiation function of the institution.  
9.10.   The UAE was among the first WTO member countries to suppo rt a multilateral response to 
the COVID -19 pandemic by facilitating access to urgent and essential medical goods. The UAE, 
conscious of the critical importance of a fair and predictable trading environment, has not taken any 
trade restrictive and protectio nist measures provided for in times of emergency.  
9.11.   The UAE also participated in many of the Joint Statement Initiatives, including:  
• A ministerial statement on COVID -19 and the multilateral trading system;  
• A joint statement on responding to the COVID -19 pan demic with open and predictable 
trade in Agricultural and food products;  
• A statement on highlighting the importance of SMEs in the time of COVID -19; 
• A joint statement on E -commerce;  
• A joint ministerial statement on investment facilitation for development; and  
• A joint statement on agriculture export prohibition or restrictions relating to the world food 
programs.  
9.12.   While the UAE believes there is a need to modernize and strengthen the global trading system 
and reform key pillars of the WTO (e.g. negotiations,  dispute settlement and the review of national 
trade policy), it considers the principle of Special and Differential Treatment to be an essential 
element of the rules -based trading system, as its main objective is to accommodate the concerns 
and developmen t needs of a number of WTO member countries. The UAE also views areas of 
technical assistance and capacity -building as equally important.  WT/TPR/G/423 • United Arab Emirates  
 
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  10  INVESTMENT IN THE UAE  
10.1  UAE Investment Environment  
10.1.   The UAE enjoys great economic stability and a promising investment e nvironment, due to its 
strategic location, strong financial reserves, large sovereign wealth funds, strong and continuous 
government spending, in addition to providing energy at competitive prices.  
10.2.   The UAE's Free Zones play a pivotal role in attracting investments and creating an enabling 
environment for diverse areas within the national economy, such as industry, trade, tourism, and 
services.  
10.3.   In the UAE, foreign investors can establish a business choosing from more than 40 designated 
Free Zon es, each operated by different rules and regulations but all allowing for 100% foreign 
ownership. The different Free Zones cater to companies from the technology, media, finance, and 
import/export industries. Additionally, investors in these Free Zones are  exempted from import duty. 
It is worth mentioning that some Free Zones allow investors to establish offshore companies, which 
act as holding companies or special purpose vehicles but may not perform any activity in the UAE 
(free zone or mainland).  
10.4.   As part  of the "Projects of the 50" initiative, the UAE is restructuring the country's entry and 
long-term residency system to enhance the UAE's position as an ideal destination for work, 
investment, entrepreneurship, education and life.  
10.5.   Among the package of new regulations is the introduction of the Green Visa, which expands 
the self -residency status to investors, entrepreneurs, highly skilled individuals, top students and 
graduates, and the federal freelancers visa for self -employed workers based in the UAE and overseas 
in specialized fields such as artificial intelligence, blockchain and digital currencies.  
10.6.   The new regulations also include expanding the Golden Visa eligibility to include skilled 
workers in science, engineering, health, education, business manage ment and technology, as well 
as highly skilled and specialized residents, investors, entrepreneurs, and high achieving students 
and graduates.  
10.2  UAE Investment Framework  
10.7.   The UAE issued Decree Law No. 32 of 2021, which updates and replaces the Commercial 
Comp anies Law of 2015 (and its subsequent amendments from 2018 and 2020). This restatement 
of the law represents a significant advancement in developing the UAE's investment environment in 
a way that enhances the country's regional and international position a s a center for investment and 
trade.  
10.8.   The new law allows for 100% foreign ownership of companies in the UAE with the exception 
of some activities of strategic importance to the UAE. Enabling foreigners to establish and fully own 
companies in the UAE will g reatly increase not only the flows of foreign investments from abroad, 
but also by foreign residents in the country, as these amendments allow full freedom for investors 
to manage and operate private investments. It is also worth noting that supporting reg ulations to 
the new law are expected in 2022, providing further upgrades and enhancements to the corporate 
environment.  
10.9.   The UAE recognizes that the legislative reforms as applied to investment in the UAE will add 
more transparency regarding due process, en hance investor confidence, simplify business practices 
and provide investors with the opportunity to explore expansion plans.  
10.10.   Foreign investors may now establish a one -person company as a private joint stock 
company, an option previously available only to  UAE citizens. Another fundamental change within 
the law is the abolishment of the requirement for an UAE national agent for foreign companies and 
branches.  
10.11.   With regard to the activities of strategic importance to the UAE, the Strategic Impact 
Activities Committee will work with various concerned government agencies at federal and local WT/TPR/G/423 • United Arab Emirates  
 
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  levels to further define those activities, if necessary, based on higher national interests and activities 
of sovereign nature in the UAE.  
10.12.   The current list of activities w ith a strategic impact includes seven activities, six of which 
may be partially held by a foreign investor in accordance with certain controls and approvals set by 
the regulatory authority for each activity. These activities are:  
• Security and defense activ ities and activities of a military nature. Conducting business in 
under these activities is subject to the approval and regulatory controls of the Ministry of 
Defense or the Ministry of Interior, depending on the nature of the activity;  
• Onshore (and exclud ing the DIFC/ADGM) activities of banks, exchange houses, finance 
companies, and insurance activities. Conducting business in under these activities  is 
subject to the approval and regulation of the Central Bank of the United Arab Emirates;  
• Printing of curre ncy notes, subject to the approval and regulation of the Central Bank of 
the United Arab Emirates;  
• Telecommunications activities, subject to the approval and regulation of the 
Telecommunications Regulatory Authority and the Digital Government;  
• Hajj and Umr ah services, subject to the approval and regulation of the General Authority 
for Islamic Affairs and Endowments;  
• Holy Quran memorization centers, which are subject to the approval and regulation of the 
General Authority for Islamic Affairs and Endowments; and, 
• As for the seventh activity, which relates to the field of fisheries, only UAE nationals may 
participate in such businesses as shareholders.  
10.3  UAE Investment Strategies  
10.3.1   National Agenda For Inward Foreign Direct Investment  
10.13.   The UAE's National Agenda for I nward Foreign Direct Investment (FDI) aims to attract 
foreign direct investment through programs, policies and initiatives that align with the strategic 
visions of the UAE, including the UAE Vision 2071. The strategy prioritizes investment in research, 
development and innovation across promising sectors in the UAE. Key sectors include financial 
technology, industry, health care, retail and e -commerce, medical and hospital tourism, space and 
space tourism, supply chains agricultural technology, entertainment , broadcasting and games, 
logistics, education, renewable energy, ICT sector, water technology, genetics and smart mobility.  
10.3.2   National Agenda for Outward Foreign Direct Investment  
10.14.   As for outward investments from the UAE, the UAE is working to establish and develop 
commercial and investment partnerships to facilitate access to promising economic opportunities 
between investors in the UAE and abroad, especially in areas that serve the UAE's future economy, 
such as food security, advanced technology, and digita l, and align with the UAE's economic 
diversification policies.  
11  REFORM AND MODERNIZATION OF ECONOMIC LEGISLATION  
11.1.   The UAE is overhauling its legal and regulatory economic environment to align with global 
best practices in transparency, investment protection, and fair competition. For the UAE, 2021 
marked the beginning of widespread regulatory and legislative reforms, aimed towards harmonizing 
global market practices and fostering a culture conducive to foreign investors.  
11.2.   Notably, recent amendments were made to more than 40 laws with an aim to further enhance 
the UAE's economic environment, investment and commercial infrastructures, and to support the 
security and stability of the society, keeping pace with the country's future growth aspirations.  WT/TPR/G/423 • United Arab Emirates  
 
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  12  PROGRESS AND FUTURE DIRECTION  OF THE UAE  
12.1  Aviation  
12.1.   Aviation plays a significant role in the UAE economy. The UAE's air transport sector currently 
supports nearly 800,000 jobs and contributes USD  47.4 billion to the UAE economy, accounting for 
13.3% of the UAE 's GDP. Based on current trends, the UAE's air transport market is expected to 
grow by 170% over the next 20 years and complete an additional 10 million passenger journeys by 
2037. If these estimates prove accurate, this increased demand can potentially co ntribute 
approximately USD  128 billion to the UAE's future GDP and support nearly 1.4 million jobs.  
12.2  Future Energy  
12.2.   The UAE has made significant progress over the years in meeting the challenges of energy 
and climate change through the implementation of nati onal plans as well as  the strategic plans of 
each emirate. The UAE has built the necessary enablers that correspond to the sustainable 
development goals (SDGs) set out by the United Nations for 2030. In addition, the UAE has 
committed more than AED  3.1 bil lion (USD  840 million) to support the development of renewable 
energy in more than 30 countries.  
12.2.1   Enabling Sustainability through the National Energy Strategy  
12.3.   The UAE National Energy Strategy, launched in 2017, aims to diversify the UAE's energy 
sources thr ough the continued development of renewables, nuclear and fossil fuels to ensure a 
balance between the country's economic needs and environmental goals. As part of this strategy, 
the UAE will invest AED  600 billion (USD  163 billion) by 2050.  
12.4.   Through the st rategy, the UAE aims to raise the efficiency of individual and the institutional 
consumption by 40% and increase the contribution of clean energy in the total energy mix produced 
in the country to 50% by 2050.  
12.5.   Today, the UAE is role model in its pursuit of  peaceful nuclear energy. Nuclear energy plays 
a key role in the National Energy Strategy, supporting the diversification of the energy mix while 
reducing the grid GHG emissions. The UAE currently has two reactors online at Barakah Nuclear 
Plant and has pl ans to operationalize two additional reactors by 2024.  
12.6.   With the highest portfolio of renewables in the region, the UAE is a front -runner in the clean 
energy transition within the GCC. In 2019, the UAE's total clean energy capacity was 1,875 MW, 
which incre ased to 4,500 MW in 2020.  
12.2.2   Hydrogen Leadership Roadmap  
12.7.   The UAE launched the "Hydrogen Leadership Roadmap" in 2021, targeting a 25% global 
market share of low carbon hydrogen by 2030. For the UAE, hydrogen is expected to be a key 
enabler of the "UAE Net Zero  by 2050 Strategic Initiative". The unveiling of the Hydrogen Leadership 
Roadmap came during the UN Climate Conference (COP26) in Glasgow.  
12.8.   The UAE became the first country in the Middle East and North Africa region to announce a 
net zero strategic initiati ve by 2050 in line with the 2015 Paris Agreement. The Net Zero Initiative 
focuses creating a vibrant ecosystem transiting towards a new model of sustainable economic growth 
that leverages research, development, innovation, and clean technology in many diff erent key 
sectors including energy, economy, industry, infrastructure, transport, waste, agriculture, and the 
environment.  
12.2.3   Renewable Energy  
12.9.   The UAE has committed to increase the contribution of clean energy in its total energy mix 
from 25% to 50% by 2050,  with the highest proportion coming from renewable sources (44%). The 
UAE also aims to improve efficiency by 40% compared to the business -as-usual (BAU) scenario by 
2050.  WT/TPR/G/423 • United Arab Emirates  
 
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  12.10.   National Water and Energy Demand Side Management (DSM): The UAE's DSM program 
launch ed in 2021 followed by a detailed plan to target a 40% reduction in energy and a 50% 
reduction in water over the BAU scenario by 2050.  
12.11.   The first UAE solar project was launched in 2009, Masdar 10 MW Photovoltaic (PV) plant and 
today the UAE is developing t he world's largest solar power plant in Abu Dhabi, the 2 GW Al -Dhafra 
Photovoltaic (PV) Plant.  
12.12.   The sustainable clean energy technology portfolio includes solar, waste to energy, nuclear, 
hydrogen, hydropower, and biofuel/biogas, and continues to explore wi nd and geothermal energies.  
12.3  Technology  
12.13.   Today, the technology sector is one of the most prominent sectors that the UAE focuses on, 
in order to promote economic diversification, and the UAE continues to provide facilities to increase 
investments in the tech nology sector.  
12.14.   The UAE is the first country in the world to appoint a Minister of State for Artificial Intelligence 
and is home to the world's first graduate -level university specialized in artificial intelligence.  
12.3.1   5G Services  
12.15.   The Telecommunications and Di gital Government Regulatory Authority (TDRA) launched its 
5G initiative in 2016 through a high level steering committee with three technical committees for 
spectrum, network and verticals. TDRA also published the UAE's 5G roadmap in 2016. As a result, 
the UAE conducted some of the earliest trials with this band of communication technology and 
demonstrated 5G capabilities early on in the UAE.  
12.16.   The UAE also became the first country in the MENA region to launch a commercial 5G network 
providing fixed wireless service in May 2018. The network rollout continued with adequate spectrum 
allocated for 5G coverage. In May 2019, the UAE began offering com mercial 5G services to all users 
as 5G handsets were rolled out into the UAE.  
12.17.   The UAE continues to be one of the most '5G -ready' countries in the world, along with Japan, 
South Korea, China and the USA. It is widely acknowledged that 5G technology will be  a key platform 
for innovation and the future of digital transformation.  
12.18.   Through the "UAE Strategy for 5G and Beyond", the country aims to increase its 5G network 
deployment and coverage, drive greater collaboration in the UAE to accelerate the use of 5G,  and 
support a diverse ecosystem where 5G can thrive.  
12.19.   TDRA issued an exceptional spectrum fees waiver for 5G frequencies of 3 GHz and above for 
more than three years, diverting the telecom investments into an ambitious 5G network rollout. The 
UAE telecom o perators have so far invested more than AED  2 billion (USD  544.520 million) and 
rolled out more than 5000 sites for 5G, covering more than 90% of the UAE population (outdoors).  
12.3.2   Artificial Intelligence  
12.20.   The UAE Strategy for Artificial Intelligence (AI) aims  to fast -track AI adoption in the UAE and 
enable the country to become a leading hub for AI as well as an exporter of AI technology by 2031.  
12.21.   The UAE Cabinet recently formed the UAE Council for Artificial Intelligence tasked with 
proposing policies to creat e an AI -friendly ecosystem in the UAE, encouraging advanced research in 
the sector and promoting collaboration between the public and private sectors.  
12.22.   Most recently, the UAE launched the Mohamed Bin Zayed University of Artificial Intelligence, 
a graduate -level institution offering MSc and PhD programs in AI.  
12.23.   The UAE's healthcare sector is also capitalizing on AI technologies. The Ministry of Health 
and Prevention, for example, developed and released Medopad, a smart application that continuously 
monitors a nd analyzes patient data to predict life -threatening medical conditions.  WT/TPR/G/423 • United Arab Emirates  
 
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  12.24.   In the transportation sector, the UAE aims to leverage AI technologies to enable smart 
mobility, increase private sector investment in the transport sector by more 20%, and reduce 
pollution through green AI -applications.  
12.4  Workforce  
12.25.   The UAE is implementing sweeping policies and regulations to strengthen its position as an 
ideal destination for business and investment, attract global talent and high skilled labor, and 
enhance labor prote ction systems.  
12.26.   The UAE launched the "Nafis Initiative" in 2021 to increase the competitiveness of Emirati 
human resources and empower UAE nationals to, within a span of five years, occupy jobs in new 
and diversified areas within the private sector. The pro gram will help accelerate the UAE's 
development journey and by enabling qualified Emiratis to contribute to the increasing role that the 
private sector plays in advancing economic development.  
12.27.   The UAE enacted the Federal Decree of Law No.33 in 2021 to reg ulate labor relations in the 
private sector that will take effect on 2 February 2022. The law is the largest overhaul of UAE labor 
legislation with reforms supporting women's rights, penalizing harassment at the workplace, 
supporting equal pay opportunitie s and simplifying previously complex practices between the 
employer and employee.  
12.28.   The UAE launched its National Talent Strategy in 2021 to attract and retain high caliber 
talent to support the development of the UAE's strategic direction to push national k nowledge and 
innovation and to develop capabilities and methods in science and technology and other highly skilled 
areas of discipline.  
12.29.   The UAE ranked 9th globally and 1st regionally in the World Competitiveness Yearbook 2021 
by the International Institute  for Management Development. It ranked 1st globally in the following 
areas: Skilled Labor, Entrepreneurship Competent Senior Managers, Need for Economic and Social 
Reforms, Immigration Laws and Industrial Disputes. The UAE also ranked 1st in capacity to at tract 
talented people in the Legatum Prosperity Index 2021.  
12.5  Small and Medium Enterprises  
12.30.   Small and Medium Enterprises (SMEs) and are an important part of the UAE economy, 
accounting for 9 8% of businesses in the UAE. According to the 2020 MENA Venture Inves tment 
Report, the UAE attracted 61% (USD  577 million) of the total inward venture funding in the MENA 
region, of which 42% was from international investors.  
12.31.   The UAE Entrepreneurship Strategy, launched in 2021, aims to empower entrepreneurs and 
strengthen the UAE's startup ecosystem by establishing accelerator programs, enabling access to 
investor networks and funding, and providing support in areas such as business set -up procedures 
and residency visas.  
12.32.   As part of these efforts, the UAE launched "The Entr epreneurship Nation", a nation -wide 
initiative to support UAE -based startups and SMEs with the aim of graduating 20 unicorns within the 
next 10 years.  
12.6  Health  
12.33.   The UAE is prioritizing its health sector and has increased spending by more than 50%. 
Based on estimates, 88% of hospitals operating in the UAE are accredited according to international 
accreditation standards.  
12.34.   The UAE's health sector continues to thrive. Th e number of doctors and medical practitioners 
in the UAE increased from 12,000 in 2011 to more than 24,000 in 2020, and nurses from 27,000 to 
more than 55,000 in 2020.  
12.35.   During the pandemic, health authorities were able to conduct near 20 million examinatio ns 
for a country whose population does not exceed 10 million people. Thanks to the integrated health WT/TPR/G/423 • United Arab Emirates  
 
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  system, the UAE ranked first in the Arab world and 11th globally in the health system's readiness to 
confront the COVID -19 pandemic. The country also contr ibuted significantly to international efforts 
in facilitating the effective distribution of COVID -19 vaccines.  
12.7  Tourism  
12.36.    The UAE is a leader in the development of growth tourism and design innovation. In 2019, 
the tourism sector contributed AED  177.8 billio n (USD  48.41 billion) to the UAE's economy and is 
projected to contribute AED  244.1 billion (USD  66.45 billion) by 2030. The tourism sector also 
supported 745,000 jobs (direct and indirect) in 2019 and this is projected to reach 988,000 by 2030.  
12.37.   The "Next Fifty Plan" for the tourism sector, launched in 2020, aims to increase the sector's 
contribution to the UAE GDP by 15% and increasing the number of hotel guests to 40 million annually 
as compared to 27 million guests currently.   
13  GENDER BALANCE  
13.1.   In 2015, the UAE established the UAE's Gender Balance Council to ensure that Emirati women 
continue to play a leading role in the development of the UAE. The Council is charged with overseeing 
the implementation of best practices and processes to ensure fe deral institutions achieve their 
gender balance targets.  
13.2.   The UAE was ranked 18th globally and 1st regionally in the Gender Inequality Index (GII) of 
the United Nations Development Program's Human Development Report 2020. It has advanced eight 
positions fr om its previous rank of 26 in 2019.  
13.3.   The UAE ranked 1st across the Arab countries in the World Economic Forum's Global Gender 
Gap Report 2021. Additionally, the UAE was ranked 1st globally in four of the report's indicators: 
Women in Parliament, sex ratio a t birth, literacy rate, and enrollment in primary education.  
13.4.   The Gender Balance Index, launched by the Council in 2016, is one of the UAE's national 
indicators and assesses the performance of government entities in enhancing gender balance. 
Individuals and  organizations leading in this field are honored each year for the best Personality, 
Federal Entity and Initiative for supporting Gender Balance  
13.5.   As of July 2021, there are nine female ministers in the UAE Cabinet  
14  RESPONDING TO COVID -19 PANDEMIC  
14.1  Government  Measures  
14.1.   In response to the COVID -19 pandemic, the UAE Central Bank announced a AED  100 billion 
(USD 27.23 billion) comprehensive Targeted Economic Support Scheme (TESS) in March 2020 
targeting banks and financial institutions under its jurisdiction to co ntain the repercussions of the 
pandemic. The scheme was expanded to AED  256 billion (USD 69.71 billion) in April 2020, in 
response to the impact of the pandemic on the UAE economy. The TESS consisted of the following 
measures:  
• AED 50 billion (USD 13.61 bi llion) from UAE Central Bank funds through collateralized 
loans at zero cost facility (ZCF) to all banks and finance companies operating in the UAE;  
• AED 50 billion (USD 13.61 billion) funds freed up from banks' capital buffers;  
• A cut by half of the require d reserve ratio to 7% on demand deposits, freeing up about 
AED 61 billion (USD 16.61 billion) of liquidity for banks; and,  
• AED 95 billion (USD 25.87 billion) equivalent in relief through reduced liquidity 
requirements for banks.  WT/TPR/G/423 • United Arab Emirates  
 
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  14.2.   Additional TESS measures w ere introduced on 8 August 2020 in relation to stable funding 
relief, which further enhanced banks' lending capacity to support the UAE economy. Moreover, the 
enhanced TESS supported micro, small and medium enterprises (MSMEs) by encouraging banks to 
suppo rt small business with payment deferrals and access to new credit lines. The loan deferral 
program benefited more than 300,000 individuals, close to 10,000 SMEs, and more than 
1,500  corporations in the UAE.  
14.3.   Furthermore, the UAE Cabinet also approved a AED  16 billion (USD 4.36 billion) economic 
stimulus package as part of the Federal Government's additional measures to support the national 
economy, ensuring businesses continuity, and mitigating the coronavirus impact.  
14.4.   The UAE also submitted a number of notif ications and memos to the WTO, including:  
• A notification submitted by the Ministry of Health and Prevention regarding the export 
restrictions of medical supplies and equipment;  
• A notification, in June 2020, submitted by the General Civil Aviation Authorit y to the 
Technical Barriers to Trade (TBT) Committee, with the nature of the procedures taken;  
• A notification submitted by the Emirates Authority for Standardization and Metrology to 
the Committee on Sanitary and Phytosanitary Measures (SPS Committee) rega rding 
commodity identification codes, nomenclature, and terminologies to facilitate the import 
of certain food products; and,  
• A notification submitted by the Emirates Authority for Standardization and Metrology 
regarding the crisis management policy of the  Emirates National Accreditation (ENAS) 
services during the COVID -19 pandemic.  
14.5.   To streamline coordination, including with the private sector, the UAE launched an online 
platform to provide the business continuity and SMEs with pertinent information and res ources to 
help respond and address to the impacts of the pandemic.  
• During this period, the UAE also announced the reduction in fees across 94 of its services 
with a view to reducing the cost of doing business;  
• At the local level, several emirates have intr oduced additional financial assistance 
measures, such as reduced or cancelled municipality fees and utility bills;  
• As one of the world's major logistics hubs, the UAE ensured operations maintenance and 
continuity of its national carriers of freighters to k eep imports, exports and international 
humanitarian relief supplies moving with minimal disruptions; and  
14.2  Leveraging Artificial Intelligence    
14.6.   The UAE leveraged AI technology to enhance its response to the COVID -19 pandemic. The 
Ministry of Health and Preven tion, for example, launched "Alhosn", its COVID -19 testing and tracing 
application that provides fast access to test results and contact tracing for accurate control of the 
virus. The AI -based tool that has proven to be a secure medium for patients' privat e health data.  
14.7.   In April 2020, the Abu Dhabi Department of Health, in collaboration with "Injazat", announced 
the launch of a new AI -driven application called "Remote Healthcare" to ensure that citizens and 
residents in the UAE have access to all the necessary information and services without physical 
contact. The application also remotely provides essential medical support to the elderly and people 
with chronic diseases, through services such as booking appointments, medical consultations, and 
prescri ptions. This application helps connect COVID -19 patients, in self -isolation, with all vital 
information provided to doctors and healthcare professionals to enable them to monitor patients 
until they are fully recovered.  
14.8.   Abu Dhabi has also used AI -powered r obots to spray disinfected areas as part of its 
sterilization program. In Dubai, the ambulance service has rolled out a self -sanitization device that 
allows paramedics and their families to sterilize clothing through a "sanitization corridor," which is WT/TPR/G/423 • United Arab Emirates  
 
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  an AI-driven tool used to disinfect clothes of paramedics and their families. In addition, AI has helped 
the education sector adapt to the pandemic, benefiting both instructors and students.  
15  UAE INSIGHTS  
15.1  Economic Recovery  
15.1.   The UAE is taking concrete steps to b uild a stronger, more resilient economy and accelerate 
the global economic recovery. The UAE will continue its plans across various economic sectors to 
prepare for the next 50 years of growth and development.  
15.2.   The UAE economy is expected to grow by 4.2% in 2022, higher than the previous forecast of 
3.8%, which is largely due to the UAE's economic measures implemented to support businesses 
responding to the impact of the COVID -19 pandemic as well as the "Projects of the 50" initiatives.  
15.2  New Partnerships for G lobal Progress  
15.3.   The World Expo 2020 Dubai is the first world fair ever to be held in the Middle East, Africa 
and South Asia (MEASA) region and represents a significant milestone for the UAE as the country 
celebrates its Golden Jubilee in 2021, marking 50 ye ars of progress and achievements.  
15.4.   The World Expo 2020 Dubai will provide enormous opportunities for global leaders to drive 
new partnerships and uncover creative solutions to some of the world's most pressing challenges, 
such as energy security, sustainab le agriculture and food security, infectious disease and pandemics, 
and climate change, among others.  
15.5.   The UAE will host the UN Climate Change Conference (COP28) in 2023, a decision by the 
UNFCCC that came following the UAE's long -term climate leadership a nd strong record of 
accomplishment in hosting high -profile international events. Aptly, the UAE is home to the 
International Renewable Energy Agency (IRENA). The UAE remains committed to encouraging 
greater cooperation with partners around the globe to acc elerate climate action and achieve 
sustainable and inclusive growth.  
 
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