• The UAE's economic diversification from oil creates compelling investment opportunities in Made in the UAE stocks.
• Explore growth in key sectors like technology, energy infrastructure, and innovative mobility solutions.
• UAE-based companies leverage strategic location and local expertise to lead in regional markets.
• Made in the UAE investing offers exposure to a stable, business-friendly hub connecting global markets.

Beyond the Bling: Is There Substance in the UAE's Economic Story?

Whenever someone mentions Dubai, what springs to mind? Towering skyscrapers piercing the clouds, seven-star hotels, and a general air of extravagant, almost comical, wealth. It’s easy to be cynical, to see it as a shimmering mirage built on a finite resource. But I think dismissing the United Arab Emirates as just a playground for the rich is a mistake. Beneath the glitz, there’s a rather serious and ambitious economic transformation taking place, and for an investor, that’s far more interesting than another indoor ski slope.

More Than Just Sand and Skyscrapers?

For decades, the UAE's story was written in black gold. Oil built the country. But the people in charge, to their credit, realised a long time ago that you cannot build a lasting future on something that will eventually run out. It’s like a rock star who, instead of blowing all their royalties on fast cars, invests in a sensible portfolio of property and businesses. The UAE is attempting to do that on a national scale, pivoting from an oil exporter to a global hub for business, finance, and technology.

They are leveraging their one truly permanent asset, their geography. Plonked right between East and West, the UAE has positioned itself as a natural bridge for global trade and travel. Combine that with business-friendly policies and you have a potent recipe for growth that doesn't rely on the price of a barrel of Brent Crude. The question for any investor, of course, is whether this grand plan has any real substance.

The New Digital Souk

To me, the most telling signs are found in the companies sprouting from this new economic soil. You might think that global tech giants have the world sewn up, but they often stumble in the Middle East, a region with its own unique cultural tapestry. This is where local champions come in. Take Yalla Group, a voice-centric social platform, or Anghami, often called the Spotify of the Middle East.

These companies succeed because they understand the nuances. They cater to local tastes and languages in a way a Silicon Valley behemoth, with its one-size-fits-all approach, often cannot. They represent a burgeoning digital economy that is young, connected, and increasingly prefers homegrown solutions. This isn't just about copying Western models, it's about adapting them to create something more relevant and, potentially, more resilient.

Old Energy, New Tricks

And let's not forget energy. While the country is moving beyond oil, it isn't abandoning its expertise. It's just getting smarter. A company like Brooge Energy is a perfect example. They aren't focused on drilling. They're in the far less glamorous, but arguably more stable, business of midstream storage and services. They’ve realised their most valuable asset isn’t just what’s under the sand, but their location on the map. They are, in effect, a strategically placed toll booth for the global energy trade. It’s this combination of digital savvy, infrastructure intelligence, and a clear-eyed view of the future that makes the Made in the UAE investment theme rather compelling.

Of course, it’s not all smooth sailing on a superyacht. Investing here isn't without its risks. The region is, shall we say, geopolitically complex. A sudden political squall could certainly rock the boat. And while the leadership seems stable and forward-thinking now, you are betting on that continuing. This is an emerging market, after all, and with that comes a certain level of unpredictability that you just don't get from buying shares in a Swiss clockmaker. But for those with a healthy appetite for risk, the potential rewards could be significant. The UAE is making a bold bet on its own future, and sometimes, betting alongside a determined player is the most interesting game in town.

Deep Dive

Market & Opportunity

• The UAE is transforming its economy from oil dependency to a global innovation and business hub.
• The World Bank ranks the UAE in the top 20 easiest countries for doing business globally.
• The country's strategic location serves as a bridge between European, Asian, and African markets.
• The UAE's Vision 2071 aims to make it the world's best nation by its centennial.

Key Companies

• Yalla Group (YALA): A voice-centric social networking platform targeting the Middle East and North Africa with culturally relevant content. The company reported 11% year-on-year growth in 2022.
• BROOGE ENERGY LTD (BROG): A midstream energy company focused on oil storage and services, capitalizing on the UAE's strategic location along major shipping routes.
• Pivotal Holdings Corp. (SWVL): A ride-sharing and mass transit technology company that addresses urban mobility challenges in emerging markets through route optimization.

Primary Risk Factors

• Regional political tensions can affect business operations and market sentiment.
• Currency fluctuations between the UAE dirham and US dollar may impact returns for international investors.
• Evolving regulations could affect company operations, despite the current business-friendly policies.
• Market liquidity for some UAE stocks may be lower than in established Western markets.
• The success of the economic diversification strategy depends on continued execution and regional political stability.

Growth Catalysts

• Government initiatives actively encourage startups and provide regulatory frameworks that support innovation.
• Companies benefit from favorable tax policies and access to both Eastern and Western markets.
• A young, tech-savvy population in the MENA region is driving demand for digital services.
• The UAE is building on existing strengths in energy by investing in strategic infrastructure.

Investment Access

• The "Made in the UAE" basket of stocks is available on the Nemo platform.
• Investments can be made through fractional shares starting from $1.
• The platform is regulated by the ADGM and offers commission-free investing.