The challenges resulting from the conflict in the Red Sea have highlighted the need for new trade routes as well as investments to redesign logistics and ensure stable supply chains, UAE Minister of Economy Abdulla bin Touq has said.
“The challenge of the Red Sea is a challenge for both the UAE and globally,” Mr bin Touq told The National.
“We need to look at new trade routes, new ways of moving items, [ensuring availability of] supply, making sure there's enough supply to the market in the UAE, the region and the world,” he said on the sidelines of the Investopia conference in Abu Dhabi on Thursday.
He said that it would take a bit longer to go back to the normal supply and demand balance.
“There would be investments coming in to make sure there are factories closer to new markets, redesigning supply routes and supply trade globally. That will actually boost the economy forward,” Mr bin Touq said.
Houthi rebels in Yemen began attacking commercial vessels to express solidarity with the Palestinians in the Israel-Gaza war. The Iran-backed group show no signs of retreating despite the US and western allies attempting to deter the group with air strikes.
This has severely disrupted trade routes, resulting in longer transit times and affected the bottom line of shipping companies, which have, in response, raised their rates to cope with losses.
“We need to look at what these circumstances [are and the] new challenges,” Mr bin Touq said.
Despite the global challenges, the UAE remains focused on resilience and policies that are “very dynamic”, he added.
The country's economy is expected to expand by 5 per cent this year, the minister said this week.
The government, in line with its We the UAE 2031 economic strategy, aims to double the nation's gross domestic product to Dh3 trillion ($816.8 billion) by that year.
At Investopia, global executives and politicians reiterated their confidence in the UAE economy, which has weathered several challenges in recent years, including the Covid-19 pandemic, the Russia-Ukraine and Israel-Gaza wars and high inflation and interest rates.
The US Federal Reserve is widely expected to begin scaling down interest rates in 2024, and this will have a significant effect on investor sentiment and economies, Mr bin Touq said.
“If interest rates are scaled down, it will help investors to really put more money in, and there will be a movement of capital that will [boost] investments into new areas and move the economy forward. So we hope that can happen by this year,” he said.
Inflows of foreign direct investment into the UAE are expected to grow further, the minister said. The country posted a record FDI of about $23 billion in 2022; official figures for last year have yet to be released.
The UAE also came in second globally after the US in terms of greenfield FDI last year, “meaning that new investments are coming in new areas that haven't been seen before here in the UAE”, he said.
After the UAE passed a law permitting 100 per cent foreign ownership of companies in 2019, about 75,000 new firms were created in a year and a half, according to Ministry of Economy data.
Between 2021 and 2022, the number of registered companies in the country increased to about 788,000. The ministry has a target of 1 million by the end of 2031.
“That kind of progressive movement in investments will come with economic policies that are set in place by the ministry and the country,” Mr bin Touq said.
“We would like to continue this conversation forward. We had conversations on capital markets, the movement of capital between the traditional economy and markets to new [and] emerging markets. We would have to see more and more happening.”
New economies, he said, are “really taking off”, specifically e-commerce, artificial intelligence, financial technology, health technology and agricultural technology.
“We bring policymakers to make sure that they have a conversation about the new challenges and what kind of new economy comes out of it,” Mr bin Touq said.
In particular, AI – thrust into the spotlight with the emergence of generative AI that led to an industry frenzy – is expected to reel in more investments and drive “huge progressive growth”, he said.
AI has the effect as with any other industrial revolution and “we would like to see more of AI improving effectiveness and efficiency globally”, Mr bin Touq said.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Results
5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; Winner: Nadhra, Fabrice Veron (jockey), Eric Lemartinel (trainer)
5.30pm: Maiden (PA) Dh80,000 (T) 1,400m; Winner: AF Dars, Tadhg O’Shea, Ernst Oertel
6pm: Handicap (PA) Dh80,000 (T) 1,400m; Winner: AF Musannef, Tadhg O’Shea, Ernst Oertel
6.30pm: Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Taghzel, Malin Holmberg, Ernst Oertel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m; Winner: M’Y Yaromoon, Khalifa Al Neyadi, Jesus Rosales
7.30pm: Handicap (TB) Dh100,000 (PA) 1,400m; Winner: Hakeem, Jim Crowley, Ali Rashid Al Raihe
UAE currency: the story behind the money in your pockets
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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More from Rashmee Roshan Lall
More on Quran memorisation:
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Playing records of the top 10 in 2017
How many games the top 10 have undertaken in the 2017 ATP season
1. Rafael Nadal 58 (49-9)
2. Andy Murray 35 (25-10)
3. Roger Federer 38 (35-3)
4. Stan Wawrinka 37 (26-11)
5. Novak Djokovic 40 (32-8)
6. Alexander Zverev 60 (46-14)
7. Marin Cilic 43 (29-14)
8. Dominic Thiem 60 (41-19)
9. Grigor Dimitrov 48 (34-14)
10. Kei Nishikori 43 (30-13)
The specs
Engine: 5.0-litre V8
Power: 480hp at 7,250rpm
Torque: 566Nm at 4,600rpm
Transmission: 10-speed auto
Fuel consumption: L/100km
Price: Dh306,495
On sale: now
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
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Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Itcan profile
Founders: Mansour Althani and Abdullah Althani
Based: Business Bay, with offices in Saudi Arabia, Egypt and India
Sector: Technology, digital marketing and e-commerce
Size: 70 employees
Revenue: On track to make Dh100 million in revenue this year since its 2015 launch
Funding: Self-funded to date
Lowest Test scores
26 - New Zealand v England at Auckland, March 1955
30 - South Africa v England at Port Elizabeth, Feb 1896
30 - South Africa v England at Birmingham, June 1924
35 - South Africa v England at Cape Town, April 1899
36 - South Africa v Australia at Melbourne, Feb. 1932
36 - Australia v England at Birmingham, May 1902
36 - India v Australia at Adelaide, Dec. 2020
38 - Ireland v England at Lord's, July 2019
42 - New Zealand v Australia in Wellington, March 1946
42 - Australia v England in Sydney, Feb. 1888
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Match info
Uefa Nations League A Group 4
England 2 (Lingard 78', Kane 85')
Croatia 1 (Kramaric 57')
Man of the match: Harry Kane (England)
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Venom
Director: Ruben Fleischer
Cast: Tom Hardy, Michelle Williams, Riz Ahmed
Rating: 1.5/5
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
Read more about the coronavirus
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
