In a strategic move to become an economic powerhouse, the UAE is launching an ambitious Export Services Strategy. Following the success of the Comprehensive Economic Partnership Agreements (CEPA) program, the country’s trade relationships expanded.
As a next step, the UAE is focusing on its services industry with the new strategy in place. It aims to increase the competitiveness of the country’s service sector. It also seeks to develop the country’s services exports.
The age of services
The global trade landscape is undergoing a significant transformation, with services exports playing an increasingly prominent role. The UAE’s performance has been improving, with services exports growing four times faster than the global average. In fact, these services now constitute nearly 20 percent of the UAE’s foreign trade, or $250 billion.
Despite its impressive performance, the UAE recognizes the vast potential of diversifying its economy through service exports. In 2022, it stood as the 12th largest service exporter globally, contributing to 2.2 percent of global services exports. However, the growing magnitude of global services exports calls for a comprehensive strategy to tap into this booming market.
The UAE has identified nine key industries with significant potential for services exports. These sectors include:
- Travel and tourism
- Information and communication technology (ICT)
- Professional services
- Financial services
- Education
- Medical tourism
- Islamic financial services
- Creative economy
- Logistics
Success stories in sectors like travel and tourism serve as a template for growth in all of these sectors.
Read: UAE set for strong economic growth in Q4 2023
The strategy’s pillars
In order to bring this vision to fruition, the UAE is taking a public-private partnership approach. Taskforces are being established for each sector. Their main goal is to collaborate to create clear and sector-specific roadmaps. Moreover, they will set data-backed targets, identify new markets, and develop enhancement initiatives. Furthermore, they will work closely with trade agencies both domestically and abroad. Leading industry experts are being recruited to join these taskforces, ensuring that the strategy benefits from real-world expertise.
Additionally, the strategy greatly focuses on utilizing data for strategic decision-making.
The UAE is ensuring top-tier data collection through the Federal Competitiveness and Statistics Centre (FCSC). This will harmonize data collection practices across all government entities and align them with global standards. This initiative aligns with the broader national agenda of increasing digitization in government services and trade.
The Services Export Strategy is part of a larger and more ambitious trade framework in the UAE. This includes CEPA, which works on removing tariffs and boosting investment flows and is supported by a re-exports strategy.
It also includes the NextGenFDI program, aimed at attracting dynamic digital businesses to the country’s economic ecosystem. These initiatives collectively support the nation’s long-term diversification ambitions, positioning it to adapt to evolving global trade demands.
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