The United Arab Emirates are one of the most important economies in the Middle East, thanks to a strategic geographical position that makes them a perfect hub for reaching various European, Asian and African markets. The country's per capita GDP is among the highest in the world ($67.700 in 2017), ranking 21st out of 190 countries in the World Bank's Doing Business rankings which measure the ease of doing business. During 2017, according to data released by SACE, construction, food and beverage, food processing, infrastructure, jewelery and high fashion stand out among the fastest growing sectors in the UAE. After a particularly weak 2017 in terms of economic growth (+0,8%, the lowest rate since 2009), the country's GDP returned to growth by around 3% last year and now we expect a further acceleration of economic activity (+3,7%, on average, in the period 2019-20), mainly thanks to the driving force of investments, with a further average increase in GDP of 3,5% in the three-year period 2021-23.
In the last 20 years, trade between the United Arab Emirates and Italy has experienced a very strong expansion (from 1,3 billion euros in 1997 to 5,4 billion in 2016): there are now numerous opportunities for Made in Italy, especially in the infrastructure and construction, energy, ICT, biomedical and pharmaceutical, and agriculture sectors. About this, SACE has just published an updated guide for Italian companies and investors. As can be seen, the most requested products are the so-called “4 Fs” of the quality Made in Italy specialization model, namely Food, Fashion, Furniture and… Ferrari. Furthermore, machinery for lifting and handling goods, packaging and processing of food products and, more generally, technologies for the construction sector should not be forgotten.
The UAE today represent the first destination market for Italian exports among the Gulf countries but, as reiterated by analysts, it is essential to first develop a well-structured approach strategy with coherent marketing plans and precise internationalization methods, preferably by identifying and selecting suitable local interlocutors. The local market will continue to offer excellent opportunities for exports and investments, if the ability to monitor risks in order to mitigate them is not lacking: among those that could negatively affect the country's growth, we must consider a weaker global economic dynamic, possible turbulence and volatility in emerging markets, as well as a global escalation in protectionism. Furthermore, any new geopolitical tensions in the Middle East area would have a negative impact on investor confidence and, consequently, on foreign investment flows. Finally, significant impacts could come from new oil price shocks, for an economy still heavily influenced by hydrocarbons despite diversification efforts.
