The Finance World Magazine| Edition: September 2023

The establishment of a new federal ministry of
investment underscores the nation’s strategic approach
to managing economic competition and ensuring longterm
growth.
This is a substantial increase
from the AED 25.6 billion
($6.97 billion) recorded in
2022. The study, published in
the semi-official UAE daily Alittihad,
also projects a steady growth trajectory,
estimating investments to rise to
a staggering AED 47.3 billion ($12.88
billion) by the year 2033.
This uptick in tourism investments
is anticipated to have a significant
impact on the overall capital structure
of the UAE economy. The report
highlights a projected increase in the
share of tourism investment within
the total capital, expected to rise to
9.1 percent in 2023 from the previous
year’s nearly 8.3 percent. Such growth
not only demonstrates the resilience
of the UAE’s tourism industry but also
underscores its strategic importance
in the country’s economic landscape.
In addition to its impact on capital
distribution, the flourishing tourism
sector is poised to contribute substantially
to the UAE’s Gross Domestic
Product (GDP). The report estimates
that the sector’s contribution to GDP
will rise by approximately 8.3 percent,
reaching AED 180.6 billion ($49.2 billion)
in 2023.
The resurgence in tourism investments
aligns with the findings of the
WTTC’s Travel & Tourism Economic
Impact 2023 Global Trends Report,
which paints an optimistic picture
of the sector’s resurgence after the
setbacks caused by the COVID-19
pandemic. The report reveals that
global investment in Travel & Tourism
is rebounding impressively after a 24
percent decline in 2020 and a further 8
percent drop in 2021. In 2022, spurred
by pent-up demand, investment surged
to $856 billion, marking an 11.1 percent
increase from the previous year
and a significant step toward recovery.
The UAE’s commitment to diversifying
its economy and attracting foreign
investment remains unwavering. The
establishment of a new federal ministry
of investment underscores the nation’s
strategic approach to managing
economic competition and ensuring
long-term growth. As the UAE pioneers
sectors such as financial services
and tourism ahead of its neighbors,
it stands as a testament to effective
governance and foresight in the face
of changing economic landscapes.
Flight bookings to the UAE for
the latter half of 2023 offer further
validation of the country’s tourism
resilience. With bookings ahead by
29 percent, the UAE is poised to harness
the momentum of this upward
trend. Amid a global push for tourism
investment and the country’s strategic
initiatives, the UAE’s tourism sector is
carving an exciting trajectory toward
sustained growth and prosperity.
According to the World Travel and
Tourism Council (WTTC), Dubai’s
tourism sector orchestrated a substantial
contribution of US$29.4 billion to
the UAE’s economy in the year 2022.
This year’s promising trajectory is
further solidified by the fact that
Dubai welcomed over 4.75 million
tourists in the first quarter of 2023
alone – a remarkable 17 percent surge
compared to the same period in the
previous year.
The spotlight on Dubai is set to
intensify as the city gears up to host
COP28 for the first time, slated to take
place from November 30 to December
12. With the climate change convention
poised to draw world leaders, ministers,
negotiators, and environmental
enthusiasts to Expo City Dubai, hoteliers
are bracing for heightened
interest in accommodations. The
event’s timing, coinciding with the
UAE’s National Day celebrations on
December 2, is expected to drive up
hotel room bookings even further.
The industry’s focus on diversity, arts,
culture, and corporate responsibility
is spurring a paradigm shift, elevating
Dubai’s hospitality sector to newfound
maturity. Bolstered by a forward-thinking
governmental vision, the UAE’s
hospitality landscape has emerged
stronger than ever.
Dubai’s hospitality market stands
out as a testament to resilience,
achieving the world’s highest occupancy
rates and underlining its global
allure. With sustainability, innovation,
and strategic planning at the forefront,
Dubai is not just recovering but thriving,
setting an inspiring example for
the industry worldwide. As the UAE
continues to diversify its economy
and prioritize responsible growth, its
tourism sector’s upward trajectory remains
steadfast, promising a resilient
and promising future.
September 2023 www.thefinanceworld.com 85