UAE’s GDP is projected to exceed AED1.7 trillion ($462.8 billion) for the first time, with foreign trade surpassing AED2.8 trillion ($762.3 billion), according to His Highness Sheikh Mohammed bin Rashid Al Maktoum.
H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, presided over the inaugural meeting of the UAE Cabinet for the year 2025 at Qasr Al Watan in Abu Dhabi.
The meeting was attended by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court; H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence; H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance; and H.H. Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs.
Year of prosperity
His Highness Sheikh Mohammed bin Rashid Al Maktoum said, “Today, I chaired the first Cabinet meeting of the new year – a year of prosperity, blessings, growth, and stability for the people of the UAE.”
H.H. Sheikh Mohammed bin Rashid Al Maktoum added, “During the meeting, we reviewed the achievements of 2024, which stands as the most remarkable economic and developmental year in the nation’s history since its establishment. Under the leadership of my brother, the UAE President, our country strengthened its global presence, signing more than 140 international agreements across vital sectors, including the economy, sustainability, clean energy, technology, artificial intelligence, security, defence, and international humanitarian efforts.”
Read more: CBUAE forecasts real GDP growth: 4 percent in 2024, rising to 5.5 percent by 2026
Legislative modernization
His Highness Sheikh Mohammed bin Rashid Al Maktoum said, “The UAE Government successfully concluded a three-year initiative involving 2,500 officials to update all legislation issued since the Union’s founding. This effort resulted in the modernisation of 80 percent of the country’s economic, social, and regulatory laws, fostering an environment conducive to growth.
“Consequently, the number of new companies established in 2024 surged to 200,000, while foreign trade exceeded AED2.8 trillion for the first time. Foreign direct investments are projected to reach AED130 billion, and industrial exports are expected to surpass AED190 billion – both unprecedented milestones.”
Economic growth and development
His Highness Sheikh Mohammed bin Rashid Al Maktoum added, “In the same year, our airports welcomed 150 million passengers, and our hospitality sector hosted over 30 million guests. Emirati youth launched 25,000 small and medium-sized enterprises, integrating seamlessly into the national economy. Additionally, Emirati participation in the private sector grew by 350 percent, with 131,000 citizens employed in this sector for the first time, driven by the Nafis program.”
His Highness Sheikh Mohammed bin Rashid Al Maktoum said, “The UAE Government also launched more than 750 national projects and initiatives to advance development, attract top talent, and secure investment. Furthermore, the Cabinet and the Ministerial Development Council issued 1,300 decisions to establish the best regulatory environment for accelerating growth over the next two decades.”
Commitment to progress
His Highness Sheikh Mohammed bin Rashid Al Maktoum concluded, “As we embark on this new year, the UAE Government reaffirms its commitment to the President, the people of the UAE, all residents, and everyone who believes in our development model. We will continue on the path of progress, openness, and modernisation, ensuring the most favorable business environment and the highest quality of life for all… What lies ahead in 2025 promises to be even greater, better, and more inspiring.”
Examining performance
The UAE Cabinet examined its performance in 2024, guided by President His Highness Sheikh Mohamed bin Zayed Al Nahyan’s directives, which served as the federal government’s roadmap for 2024. These directives emphasized the importance of reinforcing the Emirati identity on a global scale, fostering innovation, supporting national sustainability programs, and enhancing the education sector.
Throughout 2024, the Cabinet issued over 1,300 resolutions across 22 meetings. The federal government allocated approximately AED70 billion to implement nearly 750 national projects and initiatives, including over 200 transformative projects aimed at significantly advancing key development sectors.
National identity enhancement
The UAE federal government prioritized the enhancement of national identity, enacting 54 resolutions that included the approval of a federal cultural heritage law, the launch of a national initiative for culture and creativity, the adoption of the National Youth Agenda 2031, and the announcement of the National Policy for the Preservation of Modern Architectural Heritage.
The UAE also hosted and participated in international cultural events and conferences, further promoting Emirati identity on a global stage, including the World Conference on Culture and Arts Education and the signing of several international MoUs related to cultural cooperation.
Commitment to innovation
Demonstrating its ongoing commitment to innovation, the UAE joined the international Lunar Gateway space station project, alongside the USA, Japan, Canada, and the European Union. It also became the first Arab nation to establish a permanent polar research base.
The government launched a pioneering “Zero Government Bureaucracy” program aimed at streamlining procedures. More than 84 national legislation and initiatives were introduced to foster progress in strategic and emerging sectors, with significant attention given to technology and AI. The government approved over 40 related projects, legislation, initiatives, and international agreements to attract top talent, companies, and investments.
Sustainability actions
During the Year of Sustainability 2024, the UAE government continued its dedication to this area, enacting over 87 policies, initiatives, and regulations. Key actions included the launch of the “Plant the Emirates” national program, the introduction of a federal law addressing the Reduction of Climate Change Effects, the adoption of the National Policy on Biofuels, the establishment of a General Framework for Adopting Sustainable Digital Transformation, the hosting of the World Food Security Summit, and participation in international environmental and sustainable development events.
The UAE also signed several international agreements and MoUs supporting renewable energy, hydrogen and energy strategies, the circular economy, and biodiversity.
Revamping education
Focusing on education as a vital sector, the UAE government revamped its approach, encompassing early childhood and family development through higher education, training, and empowerment for future workforce leaders. This restructuring included the establishment of the Ministry of Family and the Ministry of Higher Education and Scientific Research, as well as the reorganization of the Education and Human Resources Council, the Ministry of Education, and the Ministry of Community Empowerment.
Reaffirming its commitment to education as the cornerstone for comprehensive development, the government implemented numerous supportive policies and programs. Key measures included a new framework for classifying higher education institutions, a scholarship-based funding system for federal universities, innovative management models for schools incorporating advanced educational concepts, hosting the Special Olympics Global Centre Summit, and confirming the UAE as the host of the 2025 Emirates Conference on Medical Education.
Moreover, several international agreements and MoUs were signed to facilitate the exchange of best practices and enhance educational systems.
Robust education system
The UAE’s robust education system currently serves over 1.2 million students across 1,325 public and private schools and educational institutions. This year saw the addition of over 20 new public and private schools, providing capacity for over 23,000 more students. The UAE is also home to over 107 public and private universities and higher education institutions, with a student population exceeding 200,000, including over 96,000 international students.
Under the guidance of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, with the support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, and overseen by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court, the “NAFIS” initiatives and Emiratisation policies achieved significant success, leading to over 131,000 Emirati citizens entering the workforce for the first time, a dramatic rise from the previous 29,000 Emirati nationals employed before the program’s inception, representing a growth of approximately 350 percent in Emirati private sector participation. Additionally, policies and initiatives fostering entrepreneurship and supporting SMEs resulted in over 25,000 new companies fully owned by Emirati citizens entering the economic sector.
Family stability priorities
Recognizing family stability as a critical priority, the federal government empowered Emirati families through the Sheikh Zayed Housing Program. In 2024, the program issued over 5,600 housing approvals, a substantial increase from the previous annual average of 2,000. The total value of these approvals reached AED4 billion, significantly surpassing the average of AED1.6 billion in prior years.
Legal framework modernization
To modernize its legal framework, the UAE federal government updated over 80 percent of its laws enacted since the foundation of the Union in 1971. In 2024, over 2,500 officials from federal, local, and private sector entities, across 215 specialized national teams, issued and updated over 47 federal laws and more than 130 regulatory resolutions.
Supporting this initiative is the “UAE Legislation” platform, a digital repository of over 1,000 federal laws and resolutions, attracting 500,000 monthly visits (over 40 percent of which are international) and linked to local government platforms for seamless access.
Future initiatives
Future initiatives will focus on measuring the impact of these legislation and laws across all national sectors in the country, developing a global model to assess the effects of legislation, and highlighting the country’s efforts and readiness in this field on an international scale, with the integration of artificial intelligence in developing and analyzing the impact of legislation.
Global economic partnerships
Continuing its emphasis on global economic partnerships, the UAE finalized Comprehensive Economic Partnership Agreements (CEPAs) with 12 nations in 2024, bringing the total to 24 agreements, with 15 signed and 9 expected to be announced soon.
The UAE’s GDP is projected to exceed AED1.7 trillion for the first time, with foreign trade surpassing AED2.8 trillion. Non-oil exports are anticipated to exceed AED540 billion, imports to exceed AED1.6 trillion, and re-exports to exceed AED700 billion.
Foreign Direct Investment (FDI) is projected to reach AED130 billion, up from AED111 billion in 2023, maintaining the UAE’s first-place regional ranking and 11th globally.
Local economic development departments and free zones, supported by the Ministry of Economy, issued over 200,000 new economic licenses in 2024. The UAE’s unified economic register now lists nearly 1.1 million registered businesses.
Industrial sector contributions
The industrial sector contributed over an estimated AED210 billion to the GDP, with industrial exports exceeding AED190 billion. This success is driven by over 15,000 companies providing products and services, employing over 11,000 Emirati citizens.
As part of the UAE’s commitment to offering suitable employment opportunities, a high quality of life, streamlined services, and an optimal business environment to attract investment, talent, and top-tier services, the modernized visa and entry permit system issued over 23 million visas and entry permits in 2024.
Tourism and culture success
Over 150 million visitors passed through the UAE’s ports and airports. Preliminary national estimates indicate record success in tourism and culture, with over 30 million hotel guests in 2024, resulting in over 105 million occupied hotel nights and placing UAE hotel occupancy rates among the highest globally.
International agreements and events
Reinforcing the UAE’s international presence, the Cabinet approved joining and ratifying 140 international agreements and MoUs with over 55 countries and specialized organizations. These agreements span various sectors, including economy, finance, investment, artificial intelligence, advanced technology, environment, sustainability, climate change, clean energy, taxation, justice, security, defence, aviation, and humanitarian work.
The Cabinet also approved hosting numerous international conferences and events in the UAE and establishing regional headquarters for several international organizations focused on delivering humanitarian and social programs globally.
National Drug Policy progress
The UAE Cabinet reviewed the progress of implementing the National Drug Policy. From 2018 to 2023, medicine sales increased by an average of 11.1 percent annually. Sales are projected to reach AED20.5 billion in 2024, AED21.8 billion in 2025, and AED26.4 billion by 2028.
National pharmaceutical manufacturers’ sales totaled AED862.3 million in 2023, representing 4.4 percent of the domestic market and an 8.9 percent increase over 2022. The number of medical product factories increased by 90 percent between 2018 and 2024, while locally manufactured and approved medical products rose by 120 percent, from 720 in 2010 to 1,925 in 2023.
Pharmaceutical market growth
The share of locally manufactured pharmaceuticals grew from 19 percent of the total market in 2018 to 23 percent in 2023. Pharmaceutical personnel increased from 11,827 in 2019 to 16,263 in 2023, and the number of pharmacies rose from 3,111 to 4,359 (a 40 percent increase).
Pharmaceutical patents increased from 166 in 2017 to 536 in 2023, reaching a cumulative total of 2,213.
Cultural and creative industries
To further diversify the national economy, the UAE Cabinet reviewed the 2022 economic indicators for cultural and creative industries, which encompass press and literature, music, theatre and opera, photography, software, databases, visual arts, graphic design, film equipment, clothing, textiles, footwear, jewellery, coins, and interior design.
This sector contributed 4.1 percent to the national GDP, growing 24.4 percent annually from AED 61.3 billion in 2021 to AED76.2 billion in 2022. Employment in the sector reached 522,873, reflecting a 25.6 percent annual increase. Moreover, the number of cultural and creative establishments reached 65,801, and the total value of related exports reached AED63.8 billion.
International relations agreements
In international relations, the UAE Cabinet approved the ratification of agreements with Australia on a comprehensive economic partnership, with Türkiye on reciprocal investment promotion and protection, and with Bahrain on avoiding double taxation on income and preventing tax evasion. A protocol amending the double taxation avoidance agreement with Switzerland was also ratified.
The Cabinet approved the signing of MoUs between the UAE Ministry of Energy and Infrastructure and counterparts in the US and Kenya on energy cooperation, with Portugal on electric mobility, and with Argentina on investment in the mining sector. Further MoUs were sanctioned between the UAE Ministry of Higher Education and Research and Paraguay on higher education and research, and between the UAE and the Philippines on enhancing government operations.
The Cabinet also approved MoUs between the UAE Cyber Security Council and the Ethiopian Artificial Intelligence Institute, as well as the Dominican Republic’s National Cybersecurity Center. An MoU between the UAE National Center of Meteorology and the Bulgarian Antarctic Institute concerning Antarctic research was also approved.
Strategic partnerships
Negotiations were authorized between Zayed University and Canada’s International Business University regarding academic partnership, and a trilateral strategic partnership framework for energy and infrastructure between the UAE, Albania, and Italy. Several additional agreements and MoUs aimed at strengthening the UAE’s global position were also approved.
Conference outcomes
The Cabinet reviewed the outcomes of hosting several international conferences and events, including the IEEE International Conference on Application of Information and Communication Technologies, the 8th International Symposium on Flash Floods in Wadi Systems, the Gulf4 International Conference on Sustainable Management Gulf Ecosystem Health under Climate Change, the 15th Conference on Undergraduate Research on Applied Computing, the Explorance Bluenotes MENA Conference, and the Cryptocurrency Research Conference 2024, among others.
Legislative matters
In legislative matters, the Cabinet approved the drafting of a federal law concerning the National Zakat Platform. Several executive regulations and regulatory decisions were also approved, including regulations for Federal Decree-Law No. 41 of 2023 (on regulating the accounting and auditing profession) and Federal Decree-Law No. 36 of 2023 (on regulating competition), along with a Cabinet decision on percentages related to the application of the competition law.
Human resources and financial systems
Further decisions addressed the human resources and financial system for employees of mosques under the General Authority of Islamic Affairs and Endowments (Awqaf), as well as the technical regulations for non-tobacco nicotine pouches.
Arabic Language Advisory Council
In governmental affairs, the Cabinet approved the reconstitution of the Arabic Language Advisory Council, chaired by the Minister of Culture. The final accounts of the General Pensions and Social Security Authority for the 2023 fiscal year and its budget for 2025 were also approved.
Cashless government project
The Cabinet reviewed updates on the cashless government project, the 2024 annual report on the Energy Service Companies (ESCO) market regulatory framework, and the performance report of the Emirates Investment Authority from January 1 to September 30, 2024.
