UAE Sets Ambitious Goal to Double Foreign Direct Investment by 2031

Sheikh Mohammed bin Rashid Al Maktoum, the prime minister and vice president of the United Arab Emirates led Monday’s cabinet meeting in Qasr Al Watan in Abu Dhabi. Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum stated that the United Arab Emirates aims to increase its overall FDI stock and double its yearly FDI flows in six years. 

The meeting also stated its National Investment Strategy 2031 with the end goal being a huge boost in FDI inflows to cement its place as an economic hub worldwide. The strategy proposes ambitious targets aimed at improving the nation’s economic environment within the coming decade. 

The National Investment Strategy 2031 aims to increase from AED 112 billion in annual FDI inflow in 2023 to an amount of AED 240 billion. The purpose is to also enhance its total FDI stock from AED 800 billion as of now to AED2.2 trillion during the same period. The objects reinforce the UAE’s attempt to draw a larger inflow of investments and demonstrate its place as an investment hub. 

Strategic Sectors for Development:

The investment strategy is designed to develop specific sectors including industry, logistics, financial services, renewable energy and information technology. In those arenas, it is hoped the UAE will diversify its economy, lessen oil revenue reliance and comply with global sustainability trends. This focus on sectors is believed to provide an impetus for innovation, job creation and augmenting the competitiveness of the nation globally. 

Comprehensive Initiatives and Programs:

The UAE has prepared the National Investment Strategy 2031 as a base for 12 new programs and 30 initiatives that fall under its umbrella. Some of the initiatives include the Financial Sector Development Programme, the One-Market Programme, the Institutional Innovation Attraction Programme and the ‘InvestUAE’ initiative. 

Basically, these collectively aim to simplify investment processes, improve the business environment and support a spirit of innovation and entrepreneurship. Along with these, the strategy set specific targets to increase FDI share in total investments to more than 30% and increase its contribution to GDP to 8%. These indicators characterize the UAE’s commitment to attract external investments allowing them to blend in with the internal economy for sustainable development.