Business services sector in Dubai – industry facts and trends

The UAE has seen service businesses getting more revenue now more than before. This is perhaps due to the recent focus on outsourcing services rather than employing permanent member of staff to do the job. The HSBC recently forecasted that this trend will go on regardless of the recent developments in the political climate of the western nations.

The HSBC conducts a research on global trade twice per year and the most recent research report revealed that there is likely to be trade flows between two sets of countries at any one time for 360 nations. They would ideally be exchanging goods between one another.

The latest data revealed that these activities, without regard to the direction they would take and the countries they would favor, would work well for the services sector of the UAE. The report had a more specific focus on the travel and tourism sector seeing it as having the potential to drive trade growth in the years leading to 2030.

The report showed that oil would still be as important to the economy as it had been in the past but its rate of growth would slow down.

The oil price drops of 2014 saw the UAE government place urgency to their diversification efforts a move which has had a massive pay off so far. The strategy has fostered the strengthening of other services such as financial and tourism services.

According to Ahmad Abdelaal, the regional head of corporate clients coverage MENA, countries that place a great premium on diversification, are the ones with the acumen to navigate the difficult conditions of today’s market. Abdelaal sees the UAE’s government investment in services and especially in tourism as a reflection of the government’s discerning, futuristic approach.

Last year, 58 percent of exported services were from the tourism and travel sub-sectors. This was up from 40 percent in 2000.  Additionally, HSBC predicts this amount to increase to 62 percent by 2030.

Projects such as Expo 2020 and the Transport Master Plan for Abu Dhabi are some of the initiatives are expected to drive the growth in the services sector. In particular, the Ministry of Economy in the UAE expects tours and travel growth will expand by over 5 percent per annum over the next ten years to a worth of Dh236.8 billion by 2026 which would be an increase from last year’s Dh134 billion.

The services sector has been fueled by advances in technology, increased consumer expenditure, decrease travel costs and of course, tourism. The sector should provide more opportunities for service businesses as opposed to businesses that focus on the trade of merchandise.

However, investors still look to the hydrocarbon sector for confidence in their investments even with the growing importance of the services industry. Petroleum products contribute to about 40 percent of the expected growth in goods export in the years leading to 2030.

Globally as the export of merchandise is expected to have decreased by 3 percent, HSBC forecasts that the both services and goods will create $50 trillion in revenue. However, given the unpredictability of the global politico-economic environment, the projections could also drop to somewhere close to $48 trillion as per HSBC.

4 Things to See in Dubai

Isn’t it amazing? Your trip to Dubai! The city of luxury, breathtaking skyscrapers and incredible beaches. Your trip is going to be fantastic but making it a little more organized will make it even better. Some people choose their traveling destination based on certain things that they want to see there. But maybe you don’t belong to that type and just want to have a great time in Dubai. In any event, after you’re done with packing, spend some time on searching things you should see in Dubai. Oh look, you already did and came across this article. Good job! And since you are here, let’s jump into top 4 things that are must-see in Dubai.

 

Miracle Garden

If you love plants and flowers then the Miracle Garden in Dubai will become heaven on Earth for you. The garden has over 109 million flowers: the place is full of colors and an incredible smell. The garden operated from October to April and stays closed the rest of the year because the temperature is too high. The park also has a butterfly garden, called Dubai Butterfly Garden. The latter is the world’s largest butterfly garden and has over 15,000 butterflies from 26 species.

Atlantis Hotel

Dubai does not lack hotels, one bigger, fancier, more expensive and luxurious than the other. It is hard to compare the hotels because there are too many and all equally stunning. Yet, there is one hotel that stands out in Dubai – Atlantis the Palm. Not only is it a huge hotel but also an aquatic wonderland. 17 hectares out of 46 is for the water park. Surrounded by beaches from the front and back, Atlantis proudly holds the title of a dazzling hotel.

Dubai Gold Souk

Gold, gold, gold, a lot of gold in Dubai, this noble metal is a symbol of wealth and it’s only logical that this city would have a souk, which is the Arabic word for market or bazaar. Imagine, looking around and seeing nothing but gold. You don’t have to imagine just vivt the souk.

Dubai Creek

Dubai is a city of new – new buildings, islands, hotels, bridges and so on. It is nice to see something relatively older in the city of new. Dubai Creek is a saltwater creek that extends to the Persian Gulf. Before the development of the city, the creek divided it into 2 parts. Now, it is an attraction for tourists, which is definitely worth visiting.