  
  
WT/TPR/G/423 /Rev.1  
19 September 2022 
(22-6831) Page: 1/21 
Trade Policy Review Body   Original: English  
 
 
TRADE POLICY REVIEW  
REPORT BY  
UNITED ARAB EMIRATES  
Revision  
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.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 WT/TPR/G/423 /Rev.1  • United Arab Emirates  
 
- 2 - 
 
  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 Economy  ................................ ................................ ..... 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 Programs  ................................ ................................  8 
5   FISCAL POLICY  ................................ ................................ ................................ ...........  8 
6   MONETARY POLICY  ................................ ................................ ................................ .... 9 
7   TRADE POLICY 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 Ener gy ................................ ................................ ................................ ........  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 /Rev.1 • United Arab Emirates  
 
- 3 - 
 
  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 Enterprises  ................................ ................................ ..................  18 
12.6   Health  ................................ ................................ ................................ ...................  18 
12.7   Tourism  ................................ ................................ ................................ .................  19 
13   GENDER BALANCE  ................................ ................................ ................................ .. 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 
 
 WT/TPR/G/423 /Rev.1  • United Arab Emirates  
 
- 4 - 
 
  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 econ omic priorities are geared towards achieving rapid economic recovery and 
restoring growth rates in accordance with a gradual and deliberate path of transformation towards 
a knowledge -based economy. The UAE's transition to the future will be enabled by inve stment into 
new technologies, new residency policies to attract and retain high caliber  human capital, and more 
liberalized economic policies to enhance the competitiveness of the country's business environment.  
1.3.  In pursuit of achieving its national economi c goals, the UAE is working to formulate and develop 
effective pioneering strategies and economic initiatives based on international best practices and 
standards and a balance between present -day economic realities and the outlook for future 
prospects, whe ther 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 s trategized and implemented. These 
strategic plans, also known as the "Projects of the 50", define the road map that government entities 
must implement to achieve the UAE Centennial 2071.  
1.5.  The UAE's current initiatives build upon previous long -term plans an d 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 across 
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 tourism, the UAE's economy was, like other 
countries, affected by the repercussions of the pandemic. However, t he 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 decrease at current price was at 1.2%. Over the past three years, 
non-oil GDP growth has surpassed the overall G DP 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 Infrast ructure has announced that fuel prices across the UAE were 
deregulated as of 1 August  2015, thereby adopting a new policy linked to global prices. The Ministry 
of Energy and Infrastructure and the Ministry of Finance act as the UAE Government's 
representat ives 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 outlook despite the sharp fall in 
global oil prices as its diversification policy mitigated the impact of declin ing oil prices on the 
economy.  WT/TPR/G/423 /Rev.1 • United Arab Emirates  
 
- 5 - 
 
  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 reached 
USD 72.3 billion, growing by 10% compared to 2019. The total value of the UAE's imports during 
the same p eriod reached USD  224 billion (a 14% decrease). The UAE's top 10 trading partners in 
2020 were China ; the Kingdom of Saudi  Arabia; India; the United  States; Iraq; Switzerland ; 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 same period in 2020.  
2.9.  The following sectors contributed to the UAE's GDP at constant price in 2020:  
• Mining and Quarr ying (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, g as and water: 3.0%;  
• Social and personal services: 2.1%;  
• Accommodation and food service activities: 1.8%; and  
• Agriculture, livestock and fishing: 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 val ue 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 UNCT AD World Investment Report issued in 
June 2021.  
2.11.   The UAE continues to be a major driver for foreign direct investment within the global 
economy. 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 foreign direct investment inflows to the Middle 
East and North Africa region in 2020, accounting for 40.2% of the total i nflows into the region, which 
amounted to USD  49.4 billion. Finally but not least, the UAE ranked first in the inflow of foreign 
direct investment 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, technology, industry, healthcare, pharmaceutical and life -sciences, retail and 
e-commerce, medical tourism, space and spac e 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 protectionism, manifested by high tariff barriers and WT/TPR/G/423 /Rev.1  • United Arab Emirates  
 
- 6 - 
 
  technical barriers to trade, will only result in a stagnant and i nnovation -lacking private sector. It is 
in this spirit that the UAE has executed free trade agreements with several Arab Gulf Countries, 
GAFTA, EFTA and Singapore, and continues to pursue negotiations under the GCC umbrella to 
establish free trade agreemen ts 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 from 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 innovation, 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 annu al 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 adoption of national strategic plans to accelerate the UAE's 
development of its digital economy.  
3.4.  The UAE, through its Fourth Ind ustrial Revolution and National Cybersecurity Strategy, aims to 
harness and create a safe infrastructure for cutting -edge technologies, such as blockchain 
technology in financial services and transactions, to enable its digital transformation. These effort s 
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 transformat ion 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 UA E prior to 
2020 significantly assisted in addressing challenges borne from the COVID -19 pandemic. The use of 
highly advanced systems, artificial intelligence, geospatial technologies, vaccine management 
systems and technologies and a digitally agile Govern ment 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 (IMD). The UAE was ranked first 
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, th e UAE Council on Circular Economy was formed to oversee the country's circular 
economy initiatives, indicating the UAE's commitment to environmental protection, sustainability 
and private sector collaboration to further enable the adoption of clean consump tion and production 
practices.  WT/TPR/G/423 /Rev.1 • United Arab Emirates  
 
- 7 - 
 
  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 n atural 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 Scale3 60 
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 conse rvation 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 Goals under the UN 2030 Agenda, the UAE 
has made a commitment to ensuring a sustainable fut ure for generations through adopting green 
policies and initiatives. For example, the UAE adopted the green economy methodology as a path of 
sustainable development through 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 sustainable 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 integrate the environment in 
urban planning, maintain biodiversity and the ecological balance, a nd 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 transformed 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 Organization, which ranked the UAE 20th globally in its 2021 report among a list of countries 
expor ting 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 the 
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% growth 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 various initiatives and public -private partnerships. 
The UAE's space sector is expected to pl ay 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 doma in. 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 /Rev.1  • United Arab Emirates  
 
- 8 - 
 
  and integrated business environment to meet local and global demands. The prog ram will stimulate 
innovation and adopt space technology in commercial space ecosystems supporting the 
establishment of start-ups 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 /Rev.1 • United Arab Emirates  
 
- 9 - 
 
  • credit information;  
• netting; and  
• organization of financial institutions and activities.  
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 Ministry of Finan ce 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 formed the Publ ic 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 international institu tions. 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 POLICY  
6.1.  As per th e 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 align ed 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 and modernizatio n 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 Deposit Facility". R emunerated 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 
important first step i n developing a domestic currency denominated risk -free yield curve.  
6.3.  Based on available indicators up to the end of Q 4 2021, banks operating in the UAE remain 
well capitalized with adequate capital buffers and average capital adequacy ratio, largely exceedi ng 
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 f or 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 overall outlook 
of the banking system remains positive.  WT/TPR/G/423 /Rev.1  • United Arab Emirates  
 
- 10 - 
 
  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 i t 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 Convention to Imp lement 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 the Kingdom of Bahrain, the State of Kuwait, Oman, Qatar, and the Kingdom of 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 poli cies. 
7.4.  In December  2001, the GCC Economic Agreement was signed to provide for a GCC Customs 
Union, and the harmonization of economic, financial, and monetary policies, with a view to achieve 
more economic integration through the establishment of the Gulf Co mmon 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%, wh ile 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 impl ementation of the Supreme Council's resolution issued by the GCC in its 28th session 
(on 4  December  2007), the Gulf Common 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 with 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 negotiating 
power of GCC countries, and enhancing its position among international actors and economic blocks.  
7.7.  On the liberaliza tion of services within the GCC, the Supreme Council liberalized trade in 
services for roughly 100 subsectors of services, including professional services, most business 
services, telecommunication services, banking and other financial services, distributi on 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 neg otiations to establish free trade agreements with a number 
of countries including China, India, Pakistan, Japan, the Republic of Korea, New  Zealand, 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 property, investment and competition.  
7.9.  Free trade agreements with GCC -EFTA and GCC -Singapore were concluded and enter ed into 
force in 2015. The GCC has ambitious plans to negotiate free trade agreements with other countries.  WT/TPR/G/423 /Rev.1 • United Arab Emirates  
 
- 11 - 
 
  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 ente red into force on 1  January  1998. This agreement has eliminated all 
tariffs among its members from 1  January 2005. The agreement covers trade in goods 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 Trade in Services among Arab States", which launched in 2004 
and ended in February  2017. The UAE along with nine o ther 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 liberalization of trade in 
services between Arab countries and to create an enabling environment for the develop ment 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 tim es 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 cumulat ive annual growth rate (CAGR) of 
3.9% in last 10 years ago. Despite low oil prices globally, 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 contribu tes less than 30% of the UAE's total real GDP. The manufacturing sector is 
playing an 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 manufact uring companies to benefit from the most up -to- date 
technologies. There has also been 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 past 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 tra de and tourism activity, the UAE has also taken great strides toward 
becoming a regional 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 a s roads and a 
nationwide rail network.  
8.5.  The UAE real estate and construction sector is 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 political 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 sector 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 /Rev.1  • United Arab Emirates  
 
- 12 - 
 
  one of the leading contributors t o the economy. The UAE's financial sector is one of the most 
developed and is the largest in MENA region. The financial sector comprises of retail and corporate 
banks, insurance companies, investment banks, asset management companies, foreign exchange 
comp anies, wealth management companies and financial advisory firms. The financial and insurance 
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 gro wth of 0.4% at constant price and 
its sectorial contribution to the UAE's GDP was around 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 inve stment companies and 
141 foreign exchange companies.  
9  UAE PARTICIPATION IN INTERNATIONAL 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 nationa l commitments to cut carbon emissions, including the UAE.  
9.2.  In this context, the Ministry 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 ann ouncement 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 Madrid Protocol for the International 
Trademarks Registration, which is a system under the World Intellectual Property Organization that 
will expand trademark protecti on in more than 124 member States using a single application. The 
UAE's accession to the Madrid 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 a n 
environment conducive to innovation, research and development and consolidating it as engines 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 o f the 50, most notably the recent update of a new industrial property 
law (relating to patents, 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 stimulate 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 of 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 pandem ic by sharing its 
experiences and best practices. Key highlights of UAE's participation in the G20 and in the wake of 
COVID -19 may be summarized as follows:  WT/TPR/G/423 /Rev.1 • United Arab Emirates  
 
- 13 - 
 
  • 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 equipment, and sustainable agriculture production as well as facilitated the entry of 
essential agricultural products with minimal requirements procedures;  
• The UAE impose d a policy requiring pre -approval of COVID -19-related medical supplies 
exports to ensure their 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 sup ply 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 co nstructively in multilateral discussions through the WTO. 
The UAE is a strong supporter of the multilateral trading system and works with Member countries 
to ensure a more efficient, open, free, inclusive and relevant trading system and improve the 
negotia tion function of the institution.  
9.10.   The UAE was among the first WTO Member countries to support 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 protectionist 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 pandemic 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 stateme nt 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 Differ ential Treatment to be an essential 
element of the rules -based trading system, as its main objective is to accommodate the concerns 
and development 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 /Rev.1  • United Arab Emirates  
 
- 14 - 
 
  10  INVESTMENT IN THE UAE  
10.1  UAE Investment Environment  
10.1.   The UAE enjoys great economic stability and a promising investment environment, 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 Zones, 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 compani es, 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, entrepreneu rs, 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 regulatio ns also include expanding the Golden Visa eligibility to include skilled 
workers in science, engineering, health, education, business management and technology, as well 
as highly skilled and specialized residents, investors, entrepreneurs, and high achievi ng 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 
Companies Law of 2015 (and its subsequent amendments from 2018 and 2020). This restatement 
of the law represents a signi ficant advancement in developing the UAE's investment environment in 
a way that enhances the country's regional and international position as 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 greatly 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 regulations to 
the new law are expected in 2022, providing further upgrades and enhancements to the corporate 
environme nt. 
10.9.   The UAE recognizes that the legislative reforms as applied to investment in the UAE will add 
more transparency regarding due process, enhance investor confidence, simplify business practices 
and provide investors with the opportunity to explore expansi on 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 a gent 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 /Rev.1 • United Arab Emirates  
 
- 15 - 
 
  levels to further define those a ctivities, if necessary, based on higher national interests and activities 
of sovereign nature in the UAE.  
10.12.   The current list of activities with a strategic impact includes seven activities, six of which 
may be partially held by a foreign investor in accord ance with certain controls and approvals set by 
the regulatory authority for each activity. These activities are:  
• Security and defense activities 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 excluding the DIFC/ADGM) activities of banks, exchange houses, finance 
companies, and insurance activities. Conducting bus iness in under these activities  is 
subject to the approval and regulation of the Central Bank of the United Arab Emirates;  
• Printing of currency notes, subject to the approval and regulation of the Central Bank of 
the United Arab Emirates;  
• Telecommunication s activities, subject to the approval and regulation of the 
Telecommunications Regulatory Authority and the Digital Government;  
• Hajj and Umrah 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 suc h 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 Inward Foreign Direct Investment (FDI) aims to attract 
foreign direct investment through programs, policies and initi atives 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, hea lth 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 inv estors in the UAE and abroad, especially in areas that serve the UAE's future economy, 
such as food security, advanced technology, and digital, 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, aim ed 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 /Rev.1  • United Arab Emirates  
 
- 16 - 
 
  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 contribute 
approximately USD  128 billion to the UAE's future GDP and support nearly 1.4  million jobs.  
12.2  Future En ergy 
12.2.   The UAE has made significant progress over the years in meeting the challenges of energy 
and climate change through the implementation of national plans as well as  the strategic plans of 
each emirate. The UAE has built the necessary enablers that corr espond 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 billion (USD  840 million) to support the development of renewable 
energy in more than 30  countries.  
12.2.1   Enabling Sus tainability through the National Energy Strategy  
12.3.   The UAE National Energy Strategy, launched in 2017, aims to diversify the UAE's energy 
sources through the continued development of renewables, nuclear and fossil fuels to ensure a 
balance between the countr y'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 strategy, the UAE aims to raise the efficiency of individual and the institutional 
consumption by 40% and incre ase 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 div ersification of the energy mix while 
reducing the grid GHG emissions. The UAE currently has two reactors online at Barakah Nuclear 
Plant and has plans 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 increased 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 Hydr ogen 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 initiative 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 different key 
sectors including energy, economy, industry, in frastructure, 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 source s (44%). The 
UAE also aims to improve efficiency by 40% compared to the business -as-usual (BAU) scenario 
by 2050.  WT/TPR/G/423 /Rev.1 • United Arab Emirates  
 
- 17 - 
 
  12.10.   National Water and Energy Demand Side Management (DSM): The UAE's DSM program 
launched in 2021 followed by a detailed plan to target a 40% re duction 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 the 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 wind and geothermal energies.  
12.3  Technology  
12.13.   Today, the techno logy 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 technology 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 Digital 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 a dequate spectrum 
allocated for 5G coverage. In May  2019, the UAE began offering commercial 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, the Republic of Korea , China and the U nited States . 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 an d 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 operators have so far invested more than AED  2 billion (USD 544.520 million)  and 
rolled out more than 5 ,000 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 ex porter of AI technology by 2031.  
12.21.   The UAE Cabinet recently formed the UAE Council for Artificial Intelligence tasked with 
proposing policies to create an AI -friendly ecosystem in the UAE, encouraging advanced research in 
the sector and promoting collaborati on 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 A I technologies. The Ministry of Health 
and Prevention, for example, developed and released Medopad, a smart application that continuously 
monitors and analyses  patient data to predict life -threatening medical conditions.  WT/TPR/G/423 /Rev.1  • United Arab Emirates  
 
- 18 - 
 
  12.24.   In the transportation sector, the U AE 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 protection systems.  
12.26.   The UAE launched the "Nafis Initia tive" 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 program will help accelerate the UAE's 
development j ourney 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 regulate 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 opportunities and simplifying previously complex practices b etween 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 knowledge and 
innovation and to develop capabilit ies and methods in science and technology and other highly skilled 
areas of discipline.  
12.29.   The UAE ranked nineth  globally and first regionally in the World Competitiveness 
Yearbook  2021 by the International Institute for Management Development. It ranked first 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 first 
in capacity to attract talented people in the Legatum Pr osperity 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 Investment 
Report, the UAE attracted 61% (US D 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 start-up ecosystem by establi shing 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 Entrepreneurship Nation", a nation -wide 
initiative to support UAE -based start-ups 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. The 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 examinations 
for a country whose population does not exceed 10  million people. Thanks to the integrated health WT/TPR/G/423 /Rev.1 • United Arab Emirates  
 
- 19 - 
 
  system, the UAE ranked 1st in the Arab world and 11th globally in the health system's readiness to 
confront the COVID -19 pandemic. The country also contributed 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  billion (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 
8 positions from its previous rank of 26 in 2019.  
13.3.   The UAE ranked first across the Arab countries in the World Economic Forum's Global Gender 
Gap Report 2021. Additionally, the UAE  was ranked 1st globally in 4 of the report's indicators: women 
in parliament, sex ratio at birth, literacy rate, and enrolment  in primary education.  
13.4.   The Gender Balance Index, launched by the Council in 2016, is one of the UAE's national 
indicators and ass esses the performance of government entities in enhancing gender balance. 
Individuals and organizations leading in this field are honoured  each year for the best Personality, 
Federal Entity and Initiative for supporting Gender Balance  
13.5.   As of July  2021, ther e 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 (T ESS) in March  2020 
targeting banks and financial institutions under its jurisdiction to contain 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 th e UAE economy. The TESS consisted of the following 
measures:  
• AED 50 billion (USD  13.61  billion) 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 (U SD 13.61  billion) funds freed up from banks' capital buffers;  
• A cut by half of the required 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) equivale nt in relief through reduced liquidity 
requirements for banks.  WT/TPR/G/423 /Rev.1  • United Arab Emirates  
 
- 20 - 
 
  14.2.   Additional TESS measures were introduced on 8 August  2020 in relation to stable funding 
relief, which further enhanced banks' lending capacity to support the UAE economy. Moreover, the 
enhance d TESS supported micro, small and medium enterprises (MSMEs) by encouraging banks to 
support small business with payment deferrals and access to new credit lines. The loan deferral 
program benefited more than 30 9,000 individuals, close to 10,000  SMEs, and more than 
1,900 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 business es continuity, and mitigating the coronavirus impact.  
14.4.   The UAE also submitted a number of notifications 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 Authority to the 
Technical Barriers to Trade (TBT) Committee, with the nature of the procedures taken;  
• A notification submitted by the Emirates Authority for Standardizat ion and Metrology to 
the Committee on Sanitary and Phytosanitary Measures (SPS Committee) regarding 
commodity identification codes, nomenclature, and terminologies to facilitate the import 
of certain food products; and,  
• A notification submitted by the Emir ates 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 resources 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 introduced 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 keep 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 Prevention, for example, launched "Alhosn", its COVID -19 testing and tracing 
application that provides fast access to test results and contact tracing for accurate cont rol of the 
virus. The AI -based tool that has proven to be a secure medium for patients' private 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 
prescriptions. This application helps connect COVID -19 patients, in self -isolation, with all vital 
information provided to doctors and healthcare professionals to e nable them to monitor patients 
until they are fully recovered.  
14.8.   Abu Dhabi has also used AI -powered robots 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 /Rev.1 • United Arab Emirates  
 
- 21 - 
 
  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 build a stronger, more resilient economy and accelerate 
the global economic recovery. The UAE will continue its plans across various economic sectors to 
prepa re 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 impa ct of the COVID -19 pandemic as well as the "Projects of the 50" initiatives.  
15.2  New Partnerships for Global 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 si gnificant milestone for the UAE as the country 
celebrates its Golden Jubilee in 2021, marking 50 years of progress and achievements.  
15.4.   The World Expo 2020 Dubai will provide enormous opportunities for global leaders to drive 
new partnerships and uncover cre ative solutions to some of the world's most pressing challenges, 
such as energy security, sustainable agriculture and food security, infectious disease and pandemics, 
and climate change, among others.  
15.5.   The UAE will host the UN Climate Change Conference (CO P28) in 2023, a decision by the 
UNFCCC that came following the UAE's long -term climate leadership and 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 accelerate climate action and achieve 
sustainable and inclusive growth.  
 
__________  