A new report from the MENA-OECD Business Advisory Board has spotlighted the UAE’s aggressive strategy in overhauling its economic and tourism laws, positioning the country as a leading global model for business-friendly policy. The board’s first annual report, titled “Building Diverse and Interconnected Economies: Private Sector-Led Strategies,” credits the UAE’s focus on partnership, innovation, and sustainability for its growing economic competitiveness.
Quick Facts
- Over 35 economic laws updated in 5 years.
- SMEs constitute 95% of all UAE companies.
- Business licenses have grown 10x in 20 years.
A Legislative Overhaul for Competitiveness
The UAE’s standing as a top destination for business and investment is directly tied to its recent legislative activity. According to Dr. Mariam Hanif Al Qasim, Assistant Undersecretary for Policies and Economic Studies at the Ministry of Economy and Tourism, this regulatory leadership has been a deliberate push to build a flexible, proactive, and open economic framework.
“The country’s economic legislative environment has witnessed qualitative transformations that have enhanced its flexibility and competitiveness,” said Al Qasim. She noted that the Ministry, in collaboration with partners, has issued or updated more than 35 economic laws, policies, and decisions over the past five years. This includes 10 policies specifically for new economy sectors, with 19 legislative updates passed last year alone. This pace reflects the UAE’s strategic goal to rank first globally in developing proactive legislation for new economic sectors, in line with the ‘We the UAE 2031’ vision.
Simplifying the Playbook for SMEs
The report highlights the UAE’s success in creating a supportive ecosystem for entrepreneurs and small and medium-sized enterprises (SMEs). Key initiatives include accelerating the digital transformation of government services, simplifying business registration and licensing procedures, and reducing administrative and operational costs.
These moves have produced tangible results. SMEs are the backbone of the national economy, accounting for approximately 95% of all companies, providing over 85% of private sector employment, and contributing around 63% of the GDP. The number of registered business licenses has surged to nearly 1.33 million, a tenfold increase over the last two decades, signaling the private sector’s dynamic growth.
Strategic Bets on Tourism and Food Tech
The MENA-OECD analysis also commended the UAE’s targeted policies in vital sectors like tourism and food security. The National Tourism Strategy 2031 was singled out for its role in building a value-added tourism model that diversifies offerings into cultural, nature, and rural experiences. The report also pointed to the country’s effective use of digital platforms to manage tourist flows and enhance public-private partnerships.
In the food sector, the UAE’s development of the “Food Economic Cluster” aligns with international best practices. The initiative focuses on building integrated food systems by investing in logistics, innovation, and modern agricultural technologies. In just two years since its launch, the cluster has attracted nearly 2,000 companies, helping to establish the UAE as a regional hub for food trade and production.
A New Model for Public-Private Partnership
The report’s findings underscore a regional shift from quantitative expansion to a focus on productivity, value-add, and creating high-quality jobs. It emphasizes that institutional partnership with the private sector is crucial for effective policy implementation and boosting investor confidence.
To further this agenda, the Business Advisory Board is considering the establishment of a “Business and Competitiveness Observatory” in the region. The platform would aim to improve dialogue between governments and the business community, share best practices, and connect business leaders across MENA and OECD countries.
About The MENA-OECD Business Advisory Board
The MENA-OECD Business Advisory Board is an initiative designed to foster institutional dialogue between governments and the private sector across the Middle East & North Africa. It focuses on developing practical and applicable policies to support economic competitiveness, diversification, and public-private partnerships in the region.
Source: Al-Ain
