The UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has officially approved the National Investment Strategy 2031, a pivotal initiative designed to enhance the nation’s socio-economic policies and position the UAE as a global investment powerhouse. The announcement was made at Qasr Al Watan in Abu Dhabi, during a high-level cabinet meeting attended by key UAE leaders including Sheikh Mansour bin Zayed Al Nahyan and Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.
This national strategy marks a significant step in the UAE’s goal to solidify its economic position on the world stage by fostering growth across a wide range of sectors, including industry, logistics, financial services, renewable energy, and information technology. Through innovative programs and initiatives, the UAE aims to double its foreign direct investment (FDI) inflows from Dhs112 billion in 2023 to an ambitious Dhs240 billion by 2031.
National Investment Strategy 2031: Key Programs and Initiatives
The National Investment Strategy 2031 comprises 12 new programs and 30 initiatives, designed to elevate the UAE’s standing as a prime destination for global investments. Among the most notable of these are the Financial Sector Development Programme, One-Market Programme, Institutional Innovation Attraction Programme, and the InvestUAE initiative. The strategy aims to raise FDI’s share of total investments to over 30 percent and to achieve an 8 percent contribution to GDP from foreign investments.
With a focus on promoting global competitiveness and fostering economic diversification, the UAE government is committed to creating the most business-friendly environment in the world. Sheikh Mohammed emphasized that the initiative will serve as a catalyst for strengthening both local and international trade, setting the stage for further growth across industries.
Targeted Sectors: Industry, Logistics, Finance, Renewable Energy, and Technology
The UAE’s National Investment Strategy 2031 outlines specific areas of focus that are critical to the country’s long-term development. Key sectors include:
- Industry – Strengthening manufacturing capabilities and innovation to drive economic transformation.
- Logistics – Enhancing the UAE’s position as a regional and global trade hub.
- Financial Services – Continued investment in financial infrastructure to support economic growth.
- Renewable Energy – Further expansion of sustainable energy sources, building on the UAE’s leadership in clean energy.
- Information Technology – Promoting digital transformation through the adoption of cutting-edge technologies.
Sheikh Mohammed stressed that the strategy will also position the UAE as a leader in digital economies, with a target to increase the digital economy’s contribution to GDP from 9.7 percent to 19.4 percent by 2031. This will be achieved through enhancing technological infrastructure, supporting artificial intelligence, and expanding digital services.
Strengthening International Partnerships and Global Trade
As part of the UAE’s commitment to fostering strong international relations, the Cabinet also approved several comprehensive economic partnership agreements (CEPAs) with countries like Malaysia, New Zealand, and Kenya. These agreements are expected to further enhance trade relations and increase investment flows into the UAE.
In recent years, the UAE has successfully strengthened its trade partnerships with Sub-Saharan Africa, with trade volume growing from Dhs126.7 billion in 2019 to an impressive Dhs235 billion in 2023. This surge reflects the UAE’s growing influence as a global economic hub and its commitment to expanding economic ties with emerging markets.
Advancing the Digital Economy and Sustainable Growth
The UAE’s National Digital Economy Strategy is a critical pillar of its investment strategy. The goal is to enhance the digital infrastructure of the country and increase the role of the digital economy in driving innovation and economic growth. As part of this effort, the Cabinet also approved the launch of the National Green Certificates Programme for Buildings, a voluntary classification system to assess sustainability standards in commercial, industrial, and residential developments.
This initiative aligns with the UAE’s broader sustainability goals and supports efforts to reduce the environmental impact of construction and urbanization. Additionally, Sheikh Mohammed highlighted the UAE’s commitment to sustainability by investing in renewable energy solutions and pursuing green growth as a strategic goal.
Healthcare and Social Development Initiatives
The UAE government continues to prioritize healthcare and social development, introducing several reforms to enhance the well-being of its citizens. A new National Policy for Combating Health Risks has been approved to strengthen the country’s emergency preparedness and healthcare infrastructure. The UAE also boasts a significant increase in the number of transplant procedures, with 13 licensed transplant centers now operational.
On the social front, the Cabinet introduced reforms to the national social support system, increasing the budget for social welfare by 29 percent, expanding the number of beneficiaries by 37 percent, and transitioning 3,200 individuals from aid recipients to active contributors to the workforce.
Research, Development, and Workforce Initiatives
The UAE is also investing heavily in research and development (R&D) to create a knowledge-driven economy. The Emirates Research and Development Council will spearhead the national R&D agenda, while a new Remote Work System allows the UAE to attract global talent and expertise for specialized projects. This move is designed to bolster the country’s position as an innovation hub in the Middle East and beyond.
Legislative Developments and Regulatory Reforms
The UAE Cabinet also approved several important legislative measures, including the Federal Law on the Protection of New Plant Varieties and the Executive Regulations for Organ and Human Tissue Donation and Transplantation, ensuring better access to life-saving treatments and reinforcing the nation’s commitment to health and agriculture.
A Pharmaceutical Policies Committee was established to regulate the sector, and new laws governing mental health and commercial fraud are set to create a more transparent and supportive business environment.
Conclusion: A Vision for a Prosperous Future
Sheikh Mohammed concluded the meeting by reiterating the UAE’s commitment to economic growth, innovation, and social development. The National Investment Strategy 2031, combined with the comprehensive array of reforms and programs, represents a bold vision for the UAE’s future, positioning the nation as a leader in the global economy.
As the UAE moves forward with these ambitious goals, it continues to reinforce its position as a key player in the global economy, focused on sustainability, innovation, and social welfare. The National Investment Strategy 2031 is not just a roadmap for investment but a testament to the UAE’s forward-thinking approach to securing a prosperous future for its citizens and the world.
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