Innovation i tech High

WHITE PAPER ON UAE's STATE OF MANUFACTURING
barked on a new strategy towards
GDP growth by adopting
a new Investment Law,
which would foster new foreign
investment relations and
create a favourable business
environment for foreign investors
across the globe. The
Law also allows one hundred
per cent ownership to foreign
entities, which will significantly
boost the manufacturing
sector. The amended legislation
is expected to increase
the GDP of the UAE by three
to four percent. The
nation’s GDP is projected
to increase
even further to 5.4%
after having won the
bid for Expo 2020.
The changes in
legal regulations
have had a very
positive impact on
the development
of the country
and the business
and investment
environment.
The
legal
modifications have
also moved towards
making the UAE a
more favourable place for
business and life.
The UAE has prepared a
comprehensive strategy to
further its overall economic
and social well being and to
diversify its national income,
based on a sustainable,
knowledge-based economy.
In January 2012, H. H. Sheikh
Mohammed bin Rashid Al
Maktoum launched the Green
Economy initiative under the
slogan of “A green economy
for sustainable development”.
This initiative envisions the
UAE as a global hub and a
model of a green economy.
This will not only enhance the
country's competitiveness
and sustainability, but also
preserve its environment
for future generations. The
program emphasises the
importance of a sustainable
environment to support longterm
economic growth.
In 2014, H. H. Sheikh Mohammed
launched the National
Innovation Strategy that aims
The UAE government
is supporting the
development of the
manufacturing sector
by focusing on creating
national policies that
promote sustainable
growth, investments in
education and strong
global partnerships.
to get the UAE in the league
of the most innovative nations
in the world within seven
years. The strategy targets
seven key sectors, namely
renewable energy, transport,
education, health, technology,
water and space.
In November of 2015, H.
H. Sheikh Mohammed
launched the Fund to Finance
Innovation, with an initial
amount of AED2 billion. The
Fund is a federal initiative
designed to provide financing
solutions for innovators across
various sectors within the UAE.
Priority will be given to the above
seven sectors for funding from
the Ministry of Finance.
In addition to traditional
manufacturing, the UAE is
also putting its weight behind
technology-supported 3D
printing. In April 2016, H. H.
Sheikh Mohammed launched
the Dubai 3D Printing Strategy.
This initiative plans to exploit
technology for the benefit of
society and to make the UAE,
and especially Dubai, as a
leading hub of 3D printing
technology by 2030.
The UAE government is
poised to introduce one
of the biggest tax reforms
ever in the country, with
VAT being introduced
across the country from
the 1st of January, 2018
at a standardized rate of
5%. VAT, as a general
consumption tax, will
apply to most transactions
of goods and services,
except those specifically
exempted by law. Items
that will be subject to
the VAT include cars,
electronics, mobile plans and
apparel, just to name a few.
All levels of the UAE government
- Federal and Emirate - provide
citizens and residents with a
host of public services, including
hospitals, roads, public schools,
parks, waste control, and police
services. These services are
paid for from the government
budgets. VAT is intended to help
improve the economic base of
the country. The Tax will provide
the country with a new source
of income, which will contribute
to the continued provision of
INNOVATIONANDTECH
January | 2018
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