Prime Highlights:
The UAE aims to double its foreign direct investment (FDI) to 240 billion dirhams ($65.3 billion) annually by 2031, up from 112 billion dirhams in 2023.
The strategy focuses on key sectors like industry, logistics, financial services, renewable energy, and information technology, aiming to increase FDI stock from 800 billion to 2.2 trillion dirhams.
Key Background:
The United Arab Emirates (UAE) has unveiled an ambitious plan to double its foreign direct investment (FDI) to 240 billion dirhams ($65.3 billion) annually by 2031, up from 112 billion dirhams in 2023. This move is part of the country’s newly approved National Investment Strategy, which seeks to significantly increase the nation’s FDI stock from 800 billion dirhams to 2.2 trillion dirhams in the coming years.
The strategy focuses on key sectors including industry, logistics, financial services, renewable energy, and information technology. The announcement was made during a UAE Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al-Maktoum, Vice President, Prime Minister, and Ruler of Dubai, at Qasr Al Watan in Abu Dhabi. The vice president emphasized the UAE’s ongoing efforts to create a business-friendly environment, expand global markets, and attract investments.
As part of the initiative, the government has introduced 12 new programs and 30 initiatives aimed at enhancing investment promotion and supporting economic diversification. These include the Financial Sector Development Program, the One-Market Program, and InvestUAE, which are designed to foster growth and attract global capital. Additionally, the UAE continues to strengthen its strategic partnerships with African nations, resulting in an 87 percent increase in trade with sub-Saharan Africa over the past five years.
The cabinet also reviewed progress on the National Digital Economy Strategy, which aims to increase the sector’s contribution to the GDP from 9.7 percent to 19.4 percent by 2031. Other significant decisions included the approval of an Industrial Technology Transformation Index to track sustainability practices in UAE factories, along with the restructuring of the Emirates Research and Development Council to boost innovation and collaboration.
In social and economic developments, the government announced a 29 percent increase in the social support budget, a new remote work system for federal employees, and the launch of a National Green Certificates Program to certify sustainable buildings across various sectors. The UAE continues to prioritize global economic engagement, fostering growth and innovation in a rapidly evolving global landscape.
