The UAE plans to increase annual foreign investment inflows from AED112 billion ($30.5 billion) in 2023 to AED240 billion ($65.4 billion) by 2031, and grow the country’s total foreign investment stock from AED800 billion to AED2.2 trillion over the coming years, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said on Monday as he chaired the Cabinet meeting at Qasr Al Watan in Abu Dhabi.
National Investment Strategy 2031
The Cabinet approved 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. The strategy includes the identification of the most important five 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.
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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.
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 AED 240 billion, increase the share of foreign direct investment in total investments (domestic and foreign) to above 30 percent, and reach the contribution of foreign direct investment to GDP to 8 percent.
Tech transformations
The Cabinet also assessed the outcomes of the implementation of the Industrial Technology Transformation Programme, which included the launch of the Industrial Technology Transformation Index (ITTI), the first-of-its-kind indicator for measuring technological advancement and sustainability practices in factories. It also reviewed the progress of the National Digital Economy Strategy 2031, launched to double the digital economy’s contribution to GDP from 9.7 percent to 19.4 percent.
Remote work system
The Cabinet also approved a remote work system from outside the country in the federal government, designed to leverage global talent and expertise outside the UAE to execute specialized job tasks, complete projects, and conduct studies relevant to government operations.
“We also reviewed the National Digital Economy Strategy, which aims to increase the digital economy’s contribution to GDP from 9.7 percent to 19.4 percent. 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,” Sheikh Mohammed said.
Reviewing partnerships
In economic affairs, the Cabinet reviewed the progress of the UAE’s strategic partnerships with African countries, where 95 percent of previously approved initiatives have been successfully implemented. Besides, the total trade volume with Sub-Saharan Africa has grown from AED127 billion in 2019 to AED235 billion over five years, achieving an increase of 87 percent.
“The UAE will continue to build new economic bridges across the world and reinforce its role as a global trade hub, connecting markets worldwide,” Sheikh Mohammed said.
The Cabinet also approved the launch of the National Green Certificates Programme for buildings. It is a classification system, non-compulsory in its first stage of implementation, aimed at assessing and certifying sustainable buildings according to the highest environmental standards, targeting commercial buildings, hotels and hospitality facilities, industrial establishments, government buildings, and houses, communities and compounds.
