UAE STRATEGIC OUTLOOK FOR 2030

Table of Contents
Summary..........................................................................................................................................3

Key Judgments.................................................................................................................................3

1.0 The UAE’s Global Strategic Outlook for 2030: Strategic Environment...................................4

1.1 Dubai Industrial Strategy 2030..............................................................................................5

1.2 Abu Dhabi Transportation Mobility Management Strategy..................................................6

1.3 Dubai Autonomous Transportation strategy..........................................................................7

1.4 Abu Dhabi Economic vision 2030.........................................................................................8

1.5 Strategy for enhancing defense and Homeland Security.......................................................9

1.6 Strategy for building political stability................................................................................10

2.0 Strategic Analysis....................................................................................................................11

2.1 Strategic indicator 1: Economic and Political sustainability...............................................11

[1]
2.2 Strategic Indicator 2: Reduction in traffic jams, traffic accidents, and use of shared hybrid

cars.............................................................................................................................................14

2.3 Strategic Indicator 3: Use of public transport, use of shared vehicles, implementation of

flexible working hours...............................................................................................................15

2.4 Strategic indicator 4: Liberalization and integration of the UAE economy, UAE internal

security and nature of UAE economy........................................................................................15

3.0 Conclusion...............................................................................................................................17

Bibliography..................................................................................................................................18

Summary

The Report provides an overview of UAE Global strategic outlook in conformance with vision

2030 that seeks adapt to the millennium development goals. Based on the strategic review, UAE

has developed various strategies that seek to make the country a global hub that is at par with the

industrialized world. One of such strategies includes the Dubai industrial strategy that endeavors

to develop a sustainable knowledge-based economy by the year 2030. Secondly, through Abu

Dhabi Transportation Mobility Management Strategy as well as through Dubai Autonomous

Transportation strategy, the UAE seeks to increase workforce productivity through reduction in

wasted productive person-hours. Such person-hours are wasted partly through traffic jam and

partly through road accidents. Therefore, UAE aims to eliminate loss in productive person-hours

[2]
thus promoting economic growth. Finally, through Abu Dhabi Economic Vision 2030, UAE

endeavours to transform its economy so that it does not overly on oil reserves. Therefore, it is

anticipated that by 2030, UAE will have transformed into a knowledge-based economy that will

be archetypal of innovations and advanced technologies all of which will be anchored on

research and development.

Key Judgments

Based on global strategic outlook of UAE, it can be judged that;

1. The UAE’s global strategic outlook for 2030 seeks to build a knowledge-based economy

that is not reliant on oil reserves as its key source of revenue for GDP economy.

2. The UAE’s global strategy for 2030 seeks to develop an open and integrated economy

capable of attracting investors from across the globe.

3. The UAE seeks to build both economic sustainability and environmental sustainability

through the Abu Dhabi Transportation Mobility Management and Dubai Autonomous

Transportation Strategy Strategies.

4. UAE has embarked on implementing its global strategies towards realizing vision 2030.

5. By implementing Dubai Autonomous Transportation Strategy, the government seeks to

achieve production efficiencies through reduction in wasted time in traffic congestion

besides reducing the number of deaths attributed to road accidents.

[3]
1.0 The UAE’s Global Strategic Outlook for 2030: Strategic Environment

The United Arab Emirates (UAE) is a federation of seven Emirates that include Abu Dhabi,

Fujairah, Dubai, Ajman, Sharjah, Ra’s al-Khaimah, and Umm al-Qaiwain.1 UAE is located in

Asia and borders Indian Ocean as well as Arabian Gulf besides bordering countries such as

Oman to the South East and Saudi Arabia to the South-West. UAE global strategy is tied to UAE

vision 2030 that aims to make UAE a competitive global economy through the redefinition of its

transport system, environment, industrial economy and the general economic outlook. UAE

leadership seeks to develop the country into an international tourist hub as well as a global

commercial economy capable of attracting millions of investors from across the globe. This

report seeks to examine the UAE’s global strategic outlook for 2030.

1.1 Dubai Industrial Strategy 2030

Dubai Industrial Strategy 2030 was launched by his highness Sheikh Mohammed in June 2016.

The strategy seeks to elevate Dubai to become a global platform upon which innovation-focused

businesses, sustainable and knowledge-based economy could be developed. 2

strategy 2030 is anchored on 5 key objectives that acts as the platform for developing the

industrial future of Dubai. This strategy seeks to enhance value-addition within the

manufacturing sector besides increasing the total manufacturing throughput. Moreover, Dubai

industrial strategy aims at enhancing innovativeness and knowledge development thus making

Dubai a manufacturing hub that is globally preferred. Further, the strategy seeks to develop

energy-efficient manufacturing sector that is environmentally friendly hence making Dubai a

global hub for Islamic-oriented products.3 Based on 2021 Dubai Plan, Dubai industrial strategy
1
National Media Council, 2016.
2
[Link]. UAE future, [Link] (Accessed November 19th,
2018).
3
[Link]. UAE future, [Link]

[4]
seeks to transform Dubai into “an international hub for knowledge-based innovation and

sustainable industrial activities.”4This would be achieved through industrial integration and

coherence with other strategic economic sectors so that an attractive investment environment is

created via incentives as well as through a set of initiatives. Such initiatives and incentives are

expected to improve as well as develop the existing industries besides attracting new industries

that have inherent competitive capabilities. UAE has identified 75 strategic initiatives aimed at

transforming Dubai into an international hub of innovation, knowledge, and sustainable

industrial activities.

1.2 Abu Dhabi Transportation Mobility Management Strategy

Through the development of Abu Dhabi Transportation Mobility Management (TMM) strategy,

UAE has a vision of transforming its economy so that it becomes both economically and

environmentally sustainable.5 The TMM strategy aims to encourage behavioural and attitude

change among citizens to promote use of sustainable modes of transport. Such sustainable means

of transport include access to public transport for all people in UAE. Additional objectives of this

strategy include reduction in vehicular traffic and the related traffic congestion through a shift

from private to public transport system. Therefore, developing an efficient public transport that is

multimodal would facilitate interoperability and interconnection of the pertinent transport

networks. 6 Abu Dhabi Transportation Mobility Management (TMM) strategy focus will be on

Abu Dhabi central business district and Abu Dhabi Island. The strategy entails plans such as park

4
2021 Dubai Plan. Dubai industrial strategy 2030: DUBAI INDUSTRIAL
STRATEGY.[Link]
Dubai Plan (Accessed November 19th, 2018).
5
[Link]. UAE future, [Link]
6
Department of Transport. Abu Dhabi Transportation Mobility Management Strategy, 2011.
[Link]

[5]
and ride schemes as well as adoption of flexible working hours by the government as well as car-

sharing schemes.7

There have been emerging trends in stakeholder engagement through workshops. The key

objective of such workshops is to facilitate an interface between Department of Transport Work

Streams and TMM project teams. Abu Dhabi Transportation Mobility Management (TMM)

strategy focus is on the Abu Dhabi central business district as well as the Abu Dhabi Island. This

is because; such locations are experiencing one of the fiercest congestion in the UAE.

Additionally, there is a number of commercial and residential settlements that would attract a

significant number of trips every day. Therefore, implementing the Transportation Mobility

Management (TMM) strategy via the mentioned sustainable travel areas would yield huge

benefits to the UAE. One of the priority areas of TMM strategy is to make use of department of

transport projects such as cycling loops, bus lanes and walking measures that are currently under

development. 8
In spite of this anticipated developments, United Arab Emirates: Country Risk

Report points out that Dubai is expected to continuously outperform Abu Dhabi owing to its

economic diversification strategy.

1.3 Dubai Autonomous Transportation strategy

Developed in April 2016, Dubai autonomous transportation strategy has the key goal of

transforming one quarter of overall transportation in Dubai to autonomous by the year 2030. As a

result, this strategy is expected to accrue UAE benefits amounting to AED 22 billion per year on

the basis of revenues. Such revenues would be accumulated because of reduction in carbon

emissions, accidents, transportation costs, as well as raising workforce productivity thus saving

7
Oxford Business Group .The Report: Dubai [Link] Business Group, 2016.
8
Department of Transport. Abu Dhabi Transportation Mobility Management Strategy, 2011.

[6]
millions of productive man hours that are wasted through congestion during transportation.
9
Dubai Autonomous transportation strategy is expected to cut transportation cost by 44% this

saving the economy of AED 900 million every year besides cutting carbon footprints by 12%

thus saving the economy AED 1.5 billion annually. Further, it is anticipated that through this

strategy, a 12% reduction in road accidents would be achieved thus saving an equivalent of AED

2 billion every year. This would in turn contribute to 13% increment in workforce productivity

since at least 396 million man-hours would be saved via efficient transportation every year. 10

According to the Oxford Business Group, the government of UAE has agreed to offer

preferential and affordable space for electric cars in order to promote production of clean energy

vehicles. Dubai is a logistic hub when viewed in the lens of land, sea, and air transport.

Therefore, a third of the global population is able to fly to Dubai within utmost four hours

making its location very convenient. 11

Dubai government is determined to develop Dubai into a logistics-dedicated hub. Therefore,

custom procedures have been streamlined with permits and clearances being provided at one-

stop shop. Further, the issuance of free zone incentives ensures that the cost of conducting

business in UAE is low. Additionally, electronic commerce has had a positive implication on

logistics firms. By the end of 2018, it is anticipated that e-commerce will accrue UAE

approximately $10 billion, increment of $7.5 billion compared to $ 2.5 billion revenues accrued

in 2014 through e-commerce. 12The vehicle segment has been underpinned by the government

efforts to improve road infrastructure. Despite the fact that foreign exchange has been volatile,

no other country has been able to outcompete UAE as a global leader in car sales in 2015. For
9
[Link]. UAE future, [Link]
10
[Link]. UAE future, [Link]
11
Oxford Business Group (2016).The Report: Dubai 2016. Oxford Business Group.
12
Oxford Business Group (2016).The Report: Dubai 2016. Oxford Business Group.

[7]
this reason, car sales in UAE in the 2015 financial year exceeded 400, 000. Due to the growing

luxury car market in Dubai, all global auto manufacturers are in Dubai. 13

1.4 Abu Dhabi Economic vision 2030

The government of UAE particularly Abu Dhabi has established a long-term plan aimed at

transforming the economy of Emirates so that it does not rely on the oil sector for prosperity of

its economic development. Abu Dhabi 2030 economic vision has its key focus on knowledge-

based economy and is anchored on several pillars of economic priorities. Such priorities include

adopting a well-organized fiscal policy that highly responds to economic cycle. 14 That a policy

should be supported by an open, effective, efficient business environment that is globally

integrated. The UAE government also seeks to build a resilient fiscal and financial market

having inherent manageable inflation levels. Other components of Abu Dhabi economic vision

2030 include developing a highly productive labour market that is highly skilled. Moreover, the

government seeks to achieve significant improvement of the labour market efficiency besides

supporting financial markets so that they can build their capabilities to become both projects and

economic sector financiers. 15Abu Dhabi seeks to maintain ethical management of labour force

through the implementation of laws that are in line with international labour organisation

guidelines. Further, through optimisation of government operations, accountability and

efficiency of UAE government would be highly improved.

1.5 Strategy for enhancing defense and Homeland Security

13
Oxford Business Group (2016).The Report: Dubai 2016. Oxford Business Group.
14
Department of Economy and Planning, "The Abu Dhabi Economic Vision 2030", November 2008.
[Link]
15
[Link]. UAE future, [Link]

[8]
According to Department of Economy and Planning, 16 the 2007/2008 Abu Dhabi policy agenda

seeks to promote a safe and secure economy that promotes economic sustainability. Therefore,

encompassing domestic and international security is among the nine pillars that underlines the

Emirates economic, social, and political future. Through the policy framework, Abu Dhabi has

sought to ensure that UAE cities and towns remain secure places for human habitation as well as

safe places for work. In view of this, the Oxford Business Group reports that aerospace, security

and defence sectors in the UAE have become core in the diversification of Abu Dhabi’s

economic environment. In 2016, the Aerospace segment in Abu Dhabi initiated contracts on

manufacturing, repair, maintenance, and overhauling of original equipment manufacturing to

underpin transformation towards building a knowledge-based economy. 17 In the UAE context,

the General Directorate of Abu Dhabi police is mandated with the role of law enforcement

whereas domestic security is taken care of by the ministry of interior security. In 2012 the UAE

federal government initiated actions to curb the rising cases of cybercrime through the

development of National Electronic Security Authority which has since been critical in resolving

security concerns. Besides, in 2014, the federal government established a mandatory military

service meant for the male Emirates in the endeavor to promote homeland security. Relating to

naval security, UAE has supported shipbuilding with naval shipbuilding contracts amounting to

$424.7 million by August 2016.18 In line with this [Link] reports that the United Arab

Emirates is ranked among the fifteen spenders on the defence sector across the globe. For

16
Department of Economy and Planning, "The Abu Dhabi Economic Vision 2030", November 2008.

[Link]

17
Oxford Business Group, "Aerospace and defence sector diversifying Abu Dhabi's economy", 2018.
[Link]
grow-further
18
Oxford Business Group.

[9]
1.6 Strategy for building political stability

The United Arab Emirates has transformed to become a model of political stability when looked

in the lens of unrests within the Arabic nations. Emirates Center for Strategic studies perceive

Emirates Political stability as being derived from the country’s leadership that bolsters cohesion

as well as economic openness. The UAE leadership adopts the tolerance and openness policy

which is a key pillar towards creating political stability due to enhanced social harmony and

national cohesiveness. Such a policy rejects violence and extremism in a world characterized by

extremist Islamic followers. 19The government of Emirates has sought to build a tolerant and

stable economy by promoting a culture of tolerance and open mindedness among its citizens.

This explains the difference in political stability between UAE and its neighboring economies.
20
Through Vision 2021 that was set in 2014, Emirates seeks to build a sustainable political

economy that is anchored on a cohesive society and a fair judiciary thereby positioning UAE as

among the countries with the highest Global competitive index. 21

thought to undermine Emirates political stability are ruthlessly dealt with through the legal

system given that security forces have taken full control of UAE. Apart from vision 2021 the

UAE has sought for political reforms through constitutional amendments as well as the UAE

government strategy of 2007. Article sixty two of the UAE constitution was amended in the year

2008 to empower Federal National Council to build a wide scope of political influence. On the

other hand, the 2007 government strategy entails building collaboration between the local and

19
STAFF,"UAE is model of political stability: think-tank", December 11,
2018.[Link]
20
Denmark in the United Arab Emirates, "Political Conditions"[Link]
emirates-as-market/conditions-and-barriers/
21
BTI, "United Arab Emirates Country Report,” 2016.
[Link]

[10]
federal governments with the aim of enhancing policy making and redefining the manner in

which legislation is carried out.22

2.0 Strategic Analysis

2.1 Strategic indicator 1: Economic and Political sustainability

Economic and political stability are some of the indicators of UAE progress towards achieving

vision 2030. Over the last decade, the industrial sector in Dubai had immense contribution

towards the national Gross Domestic Product with a contribution ranging between 11% and 14%.

This made the industrial sector the third largest contributor to the national GDP after trade and

logistics. Therefore, the industrial sector has depicted a growth over the last decade in spite of

the prevailing global financial crisis challenge. 23 In this way, UAE succeeded in maintaining the

prosperity of its industrial sector amid global economic challenges. These trends are as shown in

the following figures.

22
[Link], "The political System.” 2018.[Link]
political-system-and-government
23
2021 Dubai Plan. Dubai industrial strategy 2030:DUBAI INDUSTRIAL
STRATEGY.[Link]

[11]
Figure 1: Industrial trends in UAE.

Source:24

Going forward, the government of UAE seeks to integrate six industrial subsectors into its

economic development agenda. Such subsectors include Maritime, Aerospace, Fast Moving

Consumable Goods (FMCG), Aluminum and Fabricated Goods, Pharmaceuticals and Medical

Equipment as well as Machinery & Equipment. In the light of this, Emirates Aerospace is among

the largest and fastest growing sectors gauged on the global perspective. Emirates Airlines is

among the global leaders in Aerospace and owns a vast and competitive airlines fleet globally. 25

Therefore, through localization of manufacturing in the Aerospace subsector, UAE seeks to

develop manufacturing competences capable of propelling the industry to success utilizing

localized knowledge and skills. A similar strategy is being applied in the maritime subsector

24
Dubai statistics center
25
2021 Dubai Plan, p.7

[12]
where localized manufacturing of ships and boats among other maritime vessels is being

pursued.

In the lens of global strategy, UAE Aluminum and Fabricated Metals subsector is among the

leading sectors globally particularly in the production of Aluminum. The gauging of UAE global

position is based on upstream manufacturing of primary products and this strategy seeks to

promote UAE global competitiveness besides expanding its downstream manufacturing of

finished goods.26 However, in the context of UAE’s fast moving consumable goods, the Emirate

seeks to target Halal industries so that the United Arab Emirates could be transformed into the

capital for Islamic economy. In relation to Machinery and Equipment, this sector contributes to

25% of Dubai industrial sector and the government seeks to maintain this competitiveness to

earn a global position. 27

the last few decades owing to its success in building a sound political system.28

2.2 Strategic Indicator 2: Reduction in traffic jams, traffic accidents, and use of shared
hybrid cars

According to the Oxford Business Group, there are some emerging trends that seek to depict the

progress of the Autonomous Transportation Strategy. The tram and metro systems coupled with

improved bus services have helped eased congestion in Emirates. As at 2005, congestion in

Emirates was estimated to cost the government approximately DH 5.9 billion every year on

wasted production time. During the same year, deaths out of traffic accidents in UAE was rated

at 21.7% and this was four times compared to the UK accident affiliated deaths. 29 Another

26
2021 Dubai Plan, p.7
27
2021 Dubai Plan, p.8
28
BTI, "United Arab Emirates Country Report,” 2016.
[Link]
29
Oxford Business Group .The Report: Dubai [Link] Business Group, 2016.

[13]
indicator of the progressive execution of this strategy is the presence of global luxury car

manufacturers in UAE. Companies such as Al Habtoor Motors trades in models such as Bentley,

McLaren, and Bugatti has high sales in UAE compared to the neighbouring countries such as

Oman and Saudi Arabia. 30Dubai has become a logistics hub thus attracting global-level aviation,

maritime and land transportation systems. Therefore, UAE gains a lot from its strategic location

since one third of the global population requires approximately four hours to fly into Dubai.

UAE is also located midway between Asia and Europe and the strategic location of the busy Gulf

seaway that serves Europe, Asia, and the Middle East. 31

2.3 Strategic Indicator 3: Use of public transport, use of shared vehicles, implementation of
flexible working hours.

Based on the preceding discussion, there are strategic indicators that need to be monitored to

ensure that the TMM strategy is achieved in accordance with vision 2030. Such indicators

include the level of implementation of flexible working hours in UAE as well as park and ride

scheme. Another indicator is the sharing of cars as well as the use of public transport to eliminate

vehicular traffic congestion in the major cities of UAE.32 Kazem reports that Dubai has turned

out to be a strategic platform for the public transport initiative that has been promoted through

the Road and Transport Authority’s mass transit portfolio. Dubai Public transport day is

celebrated on the first day of November every year and has succeeded in creating awareness

about the merits of public transport to the public. Therefore, public transport acts as a solution

towards the attainment of UAE environmental, economic and sustainable energy goals via

improved mobility. 33
In 2017, Dubai launched a car-sharing service and the service had
30
Oxford Business Group .The Report: Dubai [Link] Business Group, 2016.
31
Oxford Business Group.
32
Oxford Business Group .The Report: Dubai [Link] Business Group, 2016.
33
Tawab, Kazem. "Here are FOUR benefits of using public transport in Dubai," Khaleej Times, November 1, 2016.
[Link]

[14]
previously been launched in Abu Dhabi. In Dubai, Udrive launched 100 cars issuing them with

permits from the Abu Dhabi department of transport to regulate their operations in UAE.

Therefore, through the Udrive smartphone application, motorist and passengers are able to view

the available cars within their vicinity thus being able to share them with other passengers. 34

2.4 Strategic indicator 4: Liberalization and integration of the UAE economy, UAE internal
security and nature of UAE economy

Based on the preceding discussion, there are several indicators that need to be monitored to

ensure that the UAE government realizes the Abu Dhabi Economic Vision 2030. Such indicators

include; the openness and integration of UAE business environment, the nature of UAE fiscal

policy and its responsiveness to economic cycles as well as internal homeland security. Other

indicators include the nature of UAE labour market, workforce productivity, and the level of

workforce skill as well as the strength of UAE financial markets. In 2015, UAE launched a

liberalization and diversification scheme aimed at reducing UAE reliance on oil and this seeks to

change its traditional labour-intensive economy to a knowledge-based economy. Abu Dhabi

Economic Vision 2030 is a diversification driver and seeks to promote investment in industrial

and export-oriented sectors as well as in technology and tourism. UAE vision 2021, which is part

of the drivers of vision 2030, prioritizes innovation, R&D, as well as technology which is the

core of a knowledge-based economy. 35

extensive reviews of its structures, processes, and operations. Therefore, a majority of the UAE

government operations have become electronic and this has been supported by the development

of e-government portal. 36
Finally, the UAE government spending on security is on the increase.
34
Samihah, Zaman. "Car-sharing service launched in Abu Dhabi, “Gulf NEWS UAE, April 24, 2018.
[Link]
35
Embassy of the United Arab Emirates, "UAE economy,"[Link]
36
Department of Economy and Planning, "The Abu Dhabi Economic Vision 2030", November 2008.
[Link]

[15]
For example, in 2016, UAE spent approximately $23.4 million on its defence sector and the

cumulative aggregate expenditure has been raising year by year. The country has also developed

an offset program called the Tawazun Economic Program whose aim is to oversee defence

procurement programs that seeks to build economic value for UAE. The core aims of the

program is to help build a knowledge based economy besides creating a sustainable defence

sector in the Emirates. 37

3.0 Conclusion

Based on this report, it can be deduced that UAE has sought to integrate its economy to the

global by adopting various strategies that are global. Through Abu Dhabi Economic vision

2030, UAE seeks to build a knowledge-based economy that is anchored on innovations,

technology as well as research and deveopment. This is oposed to the conventional UAE

economy that is reliant on oil reserves. Secondly, through the Dubai Industrial Strategy 2030,

United Arab Emirates strives to develop a manufacturing economy that is sustainable thereby

making UAE a hub of islamic products. Through the government strategic initiatives, the

Emirates has endeavoured to develop an innovative, knoledge-based economy that attarcts

investors from across the globe. Thirdly, Dubai Autonomous Transportation strategy aims to

incresae economic productivity by reducing wasting of man hours through traffic cogestion as

well as loss of life through accidents. Additionally, UAE has developed strategies for promoting

internal security besides developing political stability. Therefore, UAE strategies are in line with

Vision 2030 and seeks to build an economy that is socially, economically, politically and

environmentally sustainable.

[Link]. “United Arab Emirates – Defense,” April 23, 2018. [Link]

Emirates-Defense

[16]
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