Winbridge Properties
20 Feb 2023
UAE Sets Records in Trade and Property Demand: Insights from Sheikh Mohammed
Last year, the UAE's foreign trade hit what can only be described as "historic" levels. Sheikh Mohammed bin Rashid, the Prime Minister and Ruler of Dubai, shared this news after a cabinet meeting in Abu Dhabi, highlighting the nation's remarkable achievements. The figures don't lie – foreign trade marked a stunning 17% growth in 2022, crossing the Dh2.2 trillion ($600 billion) mark.
Sheikh Mohammed's words carry weight as he emphasized the acceleration of foreign trade and the expansion of international economic relations. In a tweet, he underscored how the investment in tourism and the surge in UAE real estate demand have resulted in unprecedented numbers. This is a testament to the nation's commitment to fostering a thriving business environment that propels the UAE's historical growth journey.
What's particularly fascinating is that the UAE's foreign trade surge significantly outpaced the World Trade Organisation's 3.5% growth forecast for global trade. A driving force behind these impressive figures was the signing of the Comprehensive Economic Partnership Agreement (Cepa) between the UAE and India in May. The deal had a substantial impact, with bilateral trade between the two countries spiking by 30% in the eight months since its implementation, as revealed by officials in January.
Diving into the property market, Dubai – the shining jewel of the UAE – witnessed an extraordinary boom. The value of property deals in the emirate soared to an unprecedented Dh528 billion in 2022. Crown Prince Sheikh Hamdan bin Mohammed described this growth as "exceptional." The numbers tell the story: transaction values surged by an impressive 76.5% annually, and the actual transactions, a whopping 122,658, rose by 44.7% year-on-year.
Not to be overshadowed, Abu Dhabi also showcased its prowess. The total volume of transactions shot up by 38.5% in 2022. The luxury sector, in particular, witnessed significant price hikes, a trend highlighted in a report by property portals Bayut and Dubizzle.
Stepping into the realm of technology, Sheikh Mohammed revealed that the cabinet has greenlit an intriguing study. This study will explore how the UAE can harness the power of cutting-edge artificial intelligence technologies like ChatGPT. The aim is to understand and navigate the potential impact of these technologies on education, health, media, and other sectors. While technologies like ChatGPT offer impressive capabilities, they also raise concerns, particularly in areas like education, where there's the possibility of students using it to submit work that isn't their own.
And then, there's the celestial horizon. Sheikh Mohammed unveiled plans to establish a National Space Fund, aiming to fuel education, training, and the development of space projects in the UAE. The vision behind this move is to support the nation's ambitious space projects, nurture the skills of the youth in this sector, and attract top-notch specialized companies to contribute to the UAE's space endeavors.
This fund, valued at Dh3 billion, is set to cultivate a series of highly accurate satellites that will enhance forecasting and climate change monitoring. It will also foster partnerships between international and local enterprises as part of the UAE Space Agency’s Space Economic Zones Programme.
In a final stride towards progress, the cabinet gave the green light for the Ministry of Climate Change and Environment to coordinate government efforts for the upcoming global Cop28 climate event. This high-profile event is slated to unfold at Expo City Dubai in November, positioning the UAE as a champion of climate-conscious initiatives.
In essence, the UAE's trajectory of growth continues to astonish, from trade records that surpass forecasts to the dizzying heights of real estate and the boundless possibilities of space exploration. Sheikh Mohammed's insights offer a glimpse into the dynamic landscape of progress that the UAE is tirelessly shaping.