Long known for its wealth, luxurious lifestyle, and glittering skyscrapers, the United Arab Emirates has undergone a striking transformation over the past decade. The oil-rich nation has evolved into one of the Middle East’s most dynamic business hubs, and at the heart of this evolution lies a powerful driver: the rise of a diversified, innovation-led economy.
From 2019 to 2023, the U.A.E. attracted an estimated $111.9 billion in inbound investment, positioning it as the leading destination for foreign direct investment (FDI) in the MENA region, according to the UNCTAD World Investment Report 2024. With Saudi Arabia and Egypt trailing behind, the U.A.E.’s economic magnetism is becoming increasingly hard to ignore.
Abu Dhabi’s Economic Engine: Non-Oil Growth and Visionary Policy
A major contributor to this shift is Abu Dhabi’s rapidly expanding non-oil sector, which grew 9.1% in 2023 to reach $166.1 billion, accounting for more than half of the capital’s real GDP. According to the Abu Dhabi Department of Economic Development (ADDED), this surge underscores the success of a strategic public-private collaboration.
“The Chamber has become a powerful advocate for Abu Dhabi’s private sector thanks to the government’s consistent and visionary support,” says Ahmed Khalifa Al Qubaisi, CEO of the Abu Dhabi Chamber of Commerce and Industry (ADC).
Recent years have seen pivotal reforms: full foreign ownership of businesses was allowed starting in 2020, and despite introducing a 9% corporate tax in 2023, the U.A.E. retained exemptions in its crucial free zones to sustain its appeal to global investors.
In 2024 alone, ADDED launched the Unified Economic License, simplifying company registration and operations in collaboration with Abu Dhabi’s free zones, further reinforcing the emirate’s investor-friendly climate.
Leading with Technology and AI
In a bold push toward modernization, ADC is not just supporting digital transformation—it’s leading it. Under Al Qubaisi’s leadership, the chamber has embraced artificial intelligence as a central operational tool. “Most of our functions are now AI-driven,” he notes proudly.
A landmark move was the launch of ChamberGPT in late 2023—the region’s first AI assistant for business inquiries. By July 2024, it had logged over 7,000 interactions across 85 countries, making ADC a trailblazer in regional digital innovation.
Further solidifying its tech-forward vision, ADC partnered with e& in June 2024 to offer SMEs tailored AI and cloud service packages. The chamber also continues to educate its members on AI, cybersecurity, and cloud tools, aiming to equip every business—large or small—with the digital tools necessary to thrive.
Empowering SMEs and Startups
Small and medium-sized enterprises are the backbone of Abu Dhabi’s economy, employing over 46% of the workforce. Recognizing this, the chamber has created a dedicated SME working group and introduced initiatives such as the SME Climate Hub, launched in partnership with COP28, First Abu Dhabi Bank, and Masdar to promote sustainable practices across the private sector.
To date, ADC has initiated over 150 programs to support startups, simplify regulatory challenges, and build a sustainable and inclusive economy aligned with the broader Abu Dhabi Economic Vision.
Leadership with Global Insight
Al Qubaisi brings a seasoned perspective to his role. With nearly two decades at ADNOC, experience at bp in London, and leadership roles at EY, he has sat on key boards including ADNOC Refining, ADNOC Distribution, and the Abu Dhabi Water and Electricity Authority. Academically, his credentials span prestigious institutions—INSEAD, Harvard, Oxford, IMD, and currently, a doctorate at Durham University.
Since taking charge in August 2023, Al Qubaisi has redefined ADC’s engagement strategy. “We’ve moved from symbolic agreements to partnerships that deliver real mutual value,” he says. The results speak for themselves: 103 partnerships signed globally and locally since his appointment.
Going Global: From Seoul to Switzerland
The chamber’s global ambitions are equally clear. In 2024, ADC signed agreements with the Korea International Trade Association (KITA) and participated in NextRise 2024 in Seoul. There’s already a proposal on the table for Abu Dhabi to co-host a regional edition of the event.
Additionally, the Gateway to the World initiative launched in July is set to boost Abu Dhabi’s global trade footprint by offering access to over 3 million member companies worldwide via the Abu Dhabi Business Connect platform.
Locally, ADC teamed up with the Abu Dhabi Exports Office and the U.A.E. International Investors Council to support businesses expanding abroad. ADC has even introduced arbitrateAD, a specialized arbitration center, to solidify Abu Dhabi’s role as a global legal and business hub.
Outlook: Resilience Amid Global Uncertainty
Despite global headwinds and regional geopolitical tensions, confidence in the U.A.E.’s resilience remains high. In June 2024, Fitch Ratings reaffirmed the country’s AA- credit rating, citing stable economic fundamentals.
Real GDP is forecast to grow 3.9% in 2024, with non-oil GDP leading the charge, especially in sectors like tourism, transport, and finance. According to ADC, population growth—long viewed as a challenge—is now seen as an opportunity to fuel workforce development and consumer demand.
As Al Qubaisi puts it: “The U.A.E. has consistently turned challenges into opportunities. That mindset is our greatest strength.”
The Road Ahead: Diversification, Expansion, and Excellence
The second half of 2024 and beyond promises even greater momentum. ADC plans to deepen global partnerships, advocate for innovation, and increase the private sector’s contribution to economic growth.
“Excellence is not a one-time effort—it’s a culture,” says Al Qubaisi. “Our country deserves the best, and we are committed to delivering just that.”
With strategic planning, digital-first execution, and a relentless drive for growth, Abu Dhabi isn’t just preparing for a post-oil future—it’s already building it.
