Dubai: A gateway to the world’s emerging economies

A wealth of opportunities

The emirate’s expertise as a world leader in logistics and financial fields ideally positions the city to support the economies of Asia and Africa as they develop. It provides a solid base for companies seeking to invest.

The Middle East, Africa and South Asia (MEASA) region is home to more than three billion people across 72 countries. 40% of the population is under the age of 25 – that is human capital and ambition on a massive scale. With deepening mobile connectivity, increasing levels of trade, a growing financial market, and a combined GDP of US$7.7 trillion, MEASA will be both a source of supply and demand for companies that are flexible enough to seize the opportunity.

Capitalising on unbanked opportunities

The growing, and young population across MEASA is increasing demand for digitally delivered financial services. Gaps in financial services present an opportunity for financial companies - both traditional and non-traditional players - as a significant portion of the population remains unbanked.

In the Middle East, Africa and South Asia, 86%, 66% and 46% of adults respectively do not have traditional bank accounts. The gap between men’s and women’s access to financial services is most pronounced in South Asia, where 55% of men have a bank account, compared to 37% of women. There is a clear demand for financial services among the young, for example, in sub-Saharan Africa, where US$2.2 billion is held in savings by young people, and half of that amount is held by those living on less than US$2 per day. Smartphone usage is growing across the region, for example 33% use smart devices in sub-Saharan Africa, this is expected to double by 2025.

A financial hub

As trade and investment increase, there will be a growing market for wholesale banking and capital markets. This underpins Dubai’s place on the map as the de facto hub between all of the major markets within the region, and explains why more than US$350 billion of trade flows through Dubai every year.

The Dubai International Financial Centre (DIFC) is a leader for the MEASA region and the world. It is internationally recognised as a globally competitive hub, placing 8th on the most recent Global Financial Centres Index alongside powerhouses such as New York, London, Hong Kong and Singapore.

The world’s largest financial institutions, including banks and insurance companies, are present in Dubai and the emirate’s commodity markets are growing in size year-on-year. As the economies of the East open up, the potential is unlimited. On the regulatory front, the Dubai Financial Services Authority (DFSA) operates a robust regulatory framework. The emirate of Dubai also has four legal jurisdictions, the Dubai Courts, DIFC Courts, and two arbitration centres, the DIFC LCIA, (Dubai's branch of the London Court of International Arbitration), and the DIAC (Dubai International Arbitration Centre).

Leading the fintech revolution

Dubai is also a leader in the fintech revolution that is sweeping the Middle East and the world in general. Fintech investment in the MENA region grew by 66% between 2014-2019, compared to a global average of 26%, with Dubai accounting for the lion’s share of this investment. With its focus on attracting investment in technological sectors including robotics and artificial intelligence, Dubai is ideally positioned to lead the fintech revolution throughout the MEASA region.

A history of trade

Dubai has long-established relationships with nations across Africa and Asia, with India and China in particular representing two of Dubai’s largest trading partners. Dubai’s facilitation of the trade and movement of goods, its regional expertise and its world class infrastructure perfectly position it as a hub for companies seeking to invest in the MEASA region.

Bridging East and West

Dubai is strategically located for capitalising on the global economic power shift to the E7 or Emerging 7 countries, as well as other high-growth future economies in Asia and Africa.

The emirate’s established logistical and financial networks already reach far into the economies of both the East and the West and the mature economies of Europe and America are long-established partners.