The UAE cabinet at its key meeting yesterday (March 10) approved the National Investment Strategy for the next six years under which it aims to boost the annual foreign investment inflows from AED112 billion ($30.4 billion) in 2023 to AED240 billion (65 billion) by 2031.

 

The meeting chaired by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, also set an ambitious goal to grow the country’s total foreign investment stock to AED2.2 trillion.

 

On the new strategy, Sheikh Mohammed said it will focus on key sectors, including industry, logistics, financial services, renewable energy, and information technology. 

 

"The UAE continues to develop its economy, expand global markets, attract investments, and create the most business-friendly environment in the world," he stated.

 

The National Investment Strategy 2031, which focuses on transforming the UAE into a leading global strategic investment hub, strengthening its position as a key centre for attracting foreign direct investment and supporting national economic growth, as it included the identification of the most important 5 priority sectors based on the contribution of new foreign direct investment inflows: industry, financial services, transport and logistics, renewable energy and water, telecommunications and information technology.

 

The strategy includes 12 new programmes within the strategic directions, in addition to 30 initiatives under these programmes, most notably: the Financial Sector Development Programme, the One-Market Programme, the Institutional Innovation Attraction Programme, the Partner Countries Gateway Programme, "InvestUAE," the Investment Offices and Promotion Incubator.

 

While current investment results indicate that total cumulative foreign direct investment is AED0.8 trillion and annual foreign direct investment inflows are AED112 billion. The target by 2031, according to the strategy, is to increase foreign direct investment stock to AED2.2 trillion, raise annual foreign direct investment inflows to AED240 billion and increase the share of foreign direct investment in total investments (domestic and foreign) to above 30%.

 

Also it aims to reach the contribution of foreign direct investment to GDP to 8%, stated Sheikh Mohammed at the meeting held at Qasr Al Watan in Abu Dhabi which was attended by Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Ministe; Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence; Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance and Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister, and Minister of the Interior.

 

Sheikh Mohammed said: "We also reviewed the progress of the UAE’s strategic partnerships with African nations, where 95% of previously approved initiatives have been successfully implemented. As a result, our total trade volume with Sub-Saharan Africa has grown from AED126.7 billion in 2019 to AED235 billion over five years—an 87% increase. The UAE will continue to build new economic bridges across the world and reinforce its role as a global trade hub, connecting markets worldwide."

 

The cabinet, he stated, also reviewed the National Digital Economy Strategy, which aims to increase the digital economy’s contribution to GDP from 9.7% to 19.4%. 

 

"We remain committed to strengthening the UAE’s position in the global digital economy through ambitious national initiatives and projects over the next six years," he added.