The United Arab Emirates is one of the most competitive nations in the world. In IMD’s latest world competitiveness ranking, the UAE made it to the global top 10 when compared with 64 economies along 336 competitiveness criteria.
During the past 25 years, I have witnessed the UAE’s extraordinary transformation up close through my advisory roles and teaching assignments, working directly with the nation’s public and private sectors. Since it is already a leading destination for international companies of all sizes, it is not my place here to offer tips to business leaders. I aim to describe the mindset that has driven the UAE’s transformation thus far. I sincerely believe that to succeed in the UAE, understanding this mindset is essential. Understanding it can help business leaders and investors reinforce their relationships within this country, stimulating more successful ventures and new business opportunities.
Below, allow me to briefly trace the inspiration and four keys to the mindset at work.
Inspiration at the foundation
The UAE, in its current structure, was founded in 1971-2, bringing together the emirates of Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah, and Ras al Khaimah. The seven formerly independent emirates were united thanks to a far-sighted leader, the late Sheikh Zayed bin Sultan Al Nahyan — a leader who remains a national and regional role model for his vision, tolerance, and inspiration.
In the decades since, the UAE’s leaders continued to be visionaries in recognizing the importance of diversifying their economy so that it was not overly reliant on oil and gas, a sector mainly concentrated in Abu Dhabi. They invested in technology, state-of-the-art infrastructure, and services. Now, in Dubai and beyond, we find a global hub of commerce, tourism, and innovation. Along with its economic diversification, the UAE’s impressive architecture and commitment to cultural diversity have captured the world’s attention.
The UAE’s expatriate population, made up of more than 200 nationalities, accounts for about 85% of its total population — the highest proportion found anywhere in the world. To compare, Singapore’s expatriates account for little more than 40% of its population.
The Emirati government’s progressive policies have allowed diverse cultures to coexist peacefully, adding appeal for tourists and professionals. Recent government policies are making it easier for expatriates to retire in the UAE and facilitate family reunions.