The BRICS group, which originally consisted of… Brazil andRussia andIndia andChina andSouth Africa A strong multilateral economic entity after it expanded to include 4 other countries: the UAE, Egypt, Ethiopia, and Iran.
The UAE is an important player in BRICS
Once it entered, the UAE added about half a trillion dollars to the size of the “Group” economy.Brix“But the strength of the UAE economy is accompanied by an important advantage, which is diversity. In addition to the large size of energy reserves, the UAE economy has a diversified non-oil economy whose contribution to the gross domestic product has reached 74 percent. It also depends on several sectors, most notably the foreign trade sector and tourism. And the real estate sector, in addition to other sectors such as industry, artificial intelligence, and agriculture.
These advantages have made the UAE economy the most competitive economy in the Middle East and ranked 25th among the most competitive economies at the global level, making it a major player in the BRICS group. On the other hand, the free trade agreements concluded by the UAE with a large number of countries in the world will allow it to act as a gateway for BRICS products, enhance trade flows and access to global markets.
The UAE’s foreign trade also achieved a historic level in the first half of this year, rising to $380 billion, with a growth of about 25 percent for non-oil exports, while re-exports grew by 2.7 percent to $94 billion in the same period, which makes the UAE the region’s leader in Foreign trade.
UAE economy…sustainable growth
The UAE’s economy is poised for further growth during the second half of this year, achieving record numbers, benefiting from the stable investment and economic environment. The UAE economy achieved a growth of 3.6 percent during the past year, reaching about 460 billion dollars, compared to the previous year, while the non-oil GDP at constant prices reached about 340 billion dollars, with a growth rate of 6.2 percent, making the UAE’s economy ranked fifth in the world in the index. Real economic growth in GDP.
These numbers reveal the sustainability of economic growth in the UAE, while expectations indicate that the economy’s momentum will continue in the coming period, as the World Bank expects real domestic product to grow by 3.3 percent during this year, with it accelerating significantly to 4.1 percent during the next year, in contrast. The UAE Central Bank expects the economy’s growth rate to rise to 6.2 percent in 2025.
Diversified economy
In addition to the huge reserves of oil and gas, the UAE has succeeded in supporting its non-oil economy, raising its contribution to the state’s economy to more than 74 percent. This non-oil economy depends on several sectors, most notably the tourism sector, which continues to record record numbers, as its contribution to the economy has reached The country last year amounted to about 11.7 percent, amounting to $60 billion, while the UAE seeks to raise this percentage to $122 billion by 2031.
In addition, the UAE has established its position as a reliable international center for industrial investment opportunities, and according to official statistics and data, the UAE industrial sector has witnessed remarkable growth, and the value of its contribution to the gross domestic product by the end of the year 2023 reached up to 55 billion dollars, a growth of 55 percent over the year 2020, while it increased The value of UAE industrial exports is $51 billion, a growth rate of 61 percent over the same period. The contribution of the agriculture and fishing sector to the gross domestic product amounted to about $3.6 billion, as the agricultural sector is witnessing increasing demand from investors and companies in light of continued government support.
The UAE is a center of attraction for foreign investment
On the other hand, the UAE is considered an ideal destination for investments from BRICS countries, given the advanced investment environment, ease of administrative procedures, and government encouragement. The UAE ranked first in the world in terms of the performance of attracting foreign direct investments relative to the size of its economy in 2023, followed by Montenegro and Costa Rica, after recording record numbers in the number of companies established in the Gulf country. Inward foreign direct investment projects during 2023 recorded about $30.6 billion, a growth rate of about 35 percent compared to the previous year.
A global center for artificial intelligence
Given the momentum experienced by technology artificial intelligence In the recent period, the presence of the UAE as a global center for artificial intelligence will have a positive impact on the countries of the group, especially given the ambitions of these countries to catch up with this technology. In a short time, the UAE was able to attract investments from giant companies such as Microsoft. The Ministry of Economy also expects that the value of the artificial intelligence sector will reach about $118 billion by next year.
