The UAE Economy and the Path to Diversification and Innovation

This paper analyzes the economy of the United Arab Emirates (UAE) and the diversification process that has characterized it for several years. Since 2010, when the UAE launched its “Vision 2021”, the UAE government was committed to implement a long-term vision that traces a path towards the realization of a sustainable and diversified economy, based on knowledge and innovation. Furthermore, the UAE government has continued to implement this long-term vision through various plans and initiatives in alignment with the goals of the United Nations 2030 Agenda. discusses the evolution of reforms implemented to pursue an innovation-driven strategy with the increasing adoption of digital technologies, the positive mindset towards innovation and entrepreneurship, and the commitment to sustainable growth. The paper then focuses on the results in economic diversification achieved through the development of non-oil sectors in the last decade. These results show that the diversification process has made some progress, but there are still wide margin for improvement. The UAE experience demonstrates that a clear vision is important, but it also is crucial that the country's leadership is able to foster a healthy culture that values its people, who will then act accordingly to implement the strategic plan.