Transcription
We're here at the Investopia conference. There's a lot of excitement about the economic possibilities in the UAE. How do you see the economic landscape going into 2025?
First of all, my superior's fourth edition comes under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, the vice president, the deputy Prime Minister, and the chairman of the Presidential Court. This fourth edition this year brings together 3800 people, more than 20 ministers, and people from around the world who flew in to attend the talks and see what's happening in the investment landscape. The UAE is the focal point, bringing princes and people together. We want to showcase our agile governance and legislation implemented over the last four and a half years, making us more adaptive to change. I've been asked about geopolitical tension's impact. Our agility, vision, and leadership under His Highness Sheikh Mohammed bin Zayed Al Nahyan, the president of the UAE, provide the momentum to keep going, due to our adaptive legislation. This creates confidence for investors who look for stability, the rule of law, and skilled partners. That's what the UAE offers.
All of this is part of our diversification efforts, focusing on the non-oil sector. What's your projected growth for the non-oil sector?
The non-oil sector now represents a record high of 75% of the economy—unprecedented in the last 53 years. We aim for an additional 5% growth in the next six to seven years to further diversify. We have many plans, but three are most important: food and food processing, the circular economy, and the space and aerospace economy. Our data centers are also expanding, building a new economy. That's the essence of Investopia—creating a new economy and regional opportunities.
Considering the hydrocarbon sector, my basic arithmetic suggests it will be around 20% of the economy in six to seven years. More short-term, it has been a bit of a drag on the U.S. economy over the last year. Do you expect that to change this year?
The UAE's economy is very robust. Non-oil GDP has driven growth for the last three and a half years. We've seen fluctuations in oil prices and demand, from peak demand to the 2015 forecast, and that will continue. However, diversification and the energy transition will also impact this. This is an important aspect of our future direction.
Regarding real estate, specifically in Dubai, are you concerned about frothy levels or a potential bubble?
The current demand for real estate in the UAE is driven by end-users. For the first time, end-users are the primary beneficiaries. This is unlike past global real estate bubbles. Dubai is very transparent. Many high-net-worth individuals are moving in; last year we saw 6000+ homes purchased by individuals. We expect thousands more this year, hoping to match last year's numbers. This demand creates a real estate sector that attracts high-net-worth individuals and a skilled workforce, boosting the economy.
If the Ukraine-Russia war ends, are you bracing for potential departures of people who moved to the UAE because of the war?
Since the war began, we've advocated for peace. The UAE's vision is peace. We've created a robust environment that welcomes people, and that will continue. Our economy offers stability and allows for the easy movement of money and products. We've been a seaport in the 60s and 70s, an airport in the 80s and 90s, and today we are a crucial global connector. We will continue this role.