As the UAE looks towards diversifying its economy, the deepening of trade ties with the world’s most developed economy could open the door for many more fruitful engagements in subsequent time periods.
The USA and the UAE aim to explore deeper trade relations by developing mutual cooperation and investments, which could promote greater participation in the private sectors by both economies.
The UAE and the USA are both producers and exporters of hydrocarbons. The UAE is ranked 19th in the world, with respect to the receipt of the USA’s exports. In the past year, the imports for the UAE amounted to $14.75 billion. This huge amount of trade contributes to the top position in the import receipts to the UAE from the USA in the Arabian peninsula.
Highlighting, the more than a decade-long and robust trade relation of the two nations. The non-hydrocarbon trade between the two nations has gained strong ground in the recent past, rising from $5.22bn to $17.23bn, last year.
Both sides are elated by the growth and want to sustain the current momentum of trade and investment partnership. The UAE’s seriousness with respect to attracting foreign investments could be seen through the policy changes undertaken and new legislation introduced to accommodate foreign multinational companies and taking measures to provide them opportunities in its market.
And the UAE would expect reciprocation of its measures and deepen this cooperation between the two nations.
The UAE is very active in research and development in the USA. contributing around $1.75 billion to research and development and technology. And the UAE’S investments in the USA make up for the largest share in the total Arab investments amounting to $44.7 bn. And the UAE is eager to expand this share in the upcoming technologies and markets in the USA.
The cooperation between the two powerful nations is necessary for the UAE as it looks towards diversifying its economy to make it more inclusive and hydrocarbon independent. The UAE wants to attract Foreign Direct Investment( FDI) and therefore, it becomes a necessity for it rather than a choice for it to have very healthy with nations to support its post-oil growth process as the world moves towards reducing the use of non-renewable resources and increasing the use of renewable resources.