New Services Export Strategy to Boost UAE’s Service Sector Competitiveness

In an effort to leverage its trading relationships and enhance the competitiveness of its services sector, the UAE is set to launch a new Services Export Strategy. The strategy, which will be launched in partnership with the private sector, aims to promote the growth of the country’s services exports and strengthen its position as a global leader in the service-based economy.

Dr. Thani Al Zeyoudi, the Minister of State for Foreign Trade, emphasized the importance of the strategy in an exclusive interview. He highlighted the changing nature of trade, with services exports growing 60% faster than trade in goods over the past decade. The UAE has been outperforming the global trend, with services exports accounting for nearly 20% of its overall foreign trade, amounting to $250 billion.

Acknowledging the potential for further diversification of the UAE’s economy, Dr. Al Zeyoudi stressed the need for a services exports strategy. He pointed out that while the UAE was the world’s 12th largest service exporter in 2022, with a value of $154 billion, the global services exports reached a staggering $7.2 trillion, indicating significant room for growth.

The strategy will focus on nine key sectors where the UAE has proven capabilities, including travel and tourism, ICT, professional services, financial services, education, medical tourism, Islamic financial services, the creative economy, and logistics. These sectors serve as successful examples and will provide a roadmap for other industries.

To ensure the success of the strategy, taskforces will be established for each sector as public-private collaborations. These taskforces will formulate sector-specific roadmaps, set data-backed targets, identify new markets and in-demand products, and develop enhancement initiatives. The Ministry of State for Foreign Trade has already started recruiting industry leaders to join these taskforces.

To support the strategy, the Federal Competitiveness and Statistics Centre (FCSC) will handle data collection and ensure alignment with global standards. This data will be crucial in formulating effective strategies and making informed decisions. As part of the UAE’s broader economic diversification strategy, digitization and data analytics will play a vital role in building a technology-led, evidence-driven trade environment.

Dr. Al Zeyoudi emphasized that the Services Export Strategy aligns with the UAE’s overall national objectives for trade. It complements other initiatives such as the Comprehensive Economic Partnership Agreement program and the NextGenFDI program, which aim to boost investment flows and bring dynamic digital businesses to the UAE.

With the new strategy underway, the UAE is well-positioned to achieve its targets and meet shifting global demand. Dr. Al Zeyoudi expressed optimism about the future of UAE’s services exports and its potential to contribute significantly to the country’s foreign trade, which is projected to reach Dh4 trillion ($1.09 trillion) by 2031.