United Arab Emirates’ National Investment Strategy 2031

An ambitious vision for the economic future

The government of the United Arab Emirates (UAE), under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, has recently approved the National Investment Strategy 2031. This initiative, embedded within a broader context of significant reforms, aims to transform the country’s economy and establish it as an even more attractive global investment hub.

The stated goal is ambitious: to double the flow of foreign direct investments (FDI) by 2031, from 112 billion dirhams (Dhs) in 2023 to 240 billion, while also increasing the total foreign investment stock from 800 billion dirhams to 2.2 trillion dirhams.

In this article, Magellan, a specialist in supporting expatriates and facilitating their relocation to Dubai, invites you to explore the key components of this strategy and how it could present opportunities for foreign investors.

A strategic focus on key sectors

The United Arab Emirates’ National Investment Strategy 2031 concentrates on sectors deemed strategic for the future of the country’s economy. Priorities include industries such as manufacturing, logistics, financial services, renewable energy, and information technology. These areas are expanding globally, and the UAE is counting on them to drive economic growth. Foreign investors will have the opportunity to position themselves in burgeoning markets and access large-scale projects.

This sectoral diversification aims to reduce the UAE’s dependence on oil while maximizing investments in innovative and sustainable sectors. For instance, the emphasis on renewable energy and information technology paves the way for collaborations with companies at the forefront of innovation, particularly in the fields of energy transition and the digitalization of industries.

Strengthening international partnerships

One of the key ambitions of this strategy is the strengthening of international partnerships. The United Arab Emirates has intensified its trade relations with Sub-Saharan African countries, with total trade volume increasing from 126.7 billion dirhams in 2019 to 235 billion in five years, an increase of 87%. Additionally, the government has signed 28 new international agreements, including Comprehensive Economic Partnership Agreements (CEPA) with nations such as Malaysia, New Zealand, and Kenya.

For foreign investors, these agreements open new opportunities in international markets, particularly in Africa, which is experiencing rapid growth and increased demand in infrastructure, energy, and technology sectors. Investors will not only gain access to these expanding markets but will also benefit from the UAE’s privileged access to these regions.

The digital economy: The cornerstone of the future

The United Arab Emirates aims to increase the digital economy’s contribution to the national GDP from 9.7% to 19.4% by 2029. The introduction of the National Digital Economy Strategy underscores this goal, with initiatives to modernize digital infrastructure and develop online platforms for businesses and citizens.

This offers foreign investors numerous opportunities in the information technology sector, including cybersecurity, cloud computing, and artificial intelligence. The UAE market, already advanced in digitalization, is fertile ground for startups and established companies looking to expand in the MENA (Middle East and North Africa) region.

Focus on sustainability and green buildings

The launch of the National Green Certificates program for buildings marks a significant step in the UAE’s strategy to promote sustainability. This voluntary certification system allows commercial, industrial, and residential buildings to comply with stringent environmental standards, thus encouraging investors to engage in more environmentally friendly projects.

As sustainability becomes increasingly critical in global investment decisions, the UAE’s initiatives to promote ecological standards in construction and urban planning present opportunities for investors interested in the sustainable construction and clean energy sectors.

Social reforms and enhanced inclusion

The UAE government has implemented social reforms to improve access to healthcare and expand social support. The establishment of a national policy to combat health risks and the increased support for organ transplant systems demonstrate the Emirates’ commitment to strengthening their healthcare system. Concurrently, reforms to the social support system, with a 29% increase in budget and an expansion of the number of beneficiaries, signify a shift toward a more inclusive and supportive society.

These reforms enhance the country’s social stability and quality of life, essential factors for investors looking to establish themselves in a stable and prosperous environment. A favorable social climate can also encourage greater local population participation in the labor market, offering a more skilled and diverse workforce.

A dynamic legal and legislative framework

The UAE has also strengthened its legal framework, introducing new legislation to protect plant varieties, as well as regulations concerning mental health, commercial fraud, and the regulation of healthcare professions. These legislative reforms enhance market transparency and predictability, key factors for foreign investors seeking to secure their investments in a stable legal environment.

A visionary approach to the future

The UAE’s National Investment Strategy 2031 reflects the country’s ambition to become a global economic leader and a key investment hub. The UAE is actively committed to diversifying its economy, attracting foreign investments in strategic sectors, and strengthening its international partnerships. Moreover, the focus on innovation, sustainability, and digitalization creates an environment conducive to business growth and the entry of new international players.

Foreign investors should view the UAE as an increasingly dynamic market with a strong forward-looking orientation. With ambitious economic and social policies, ongoing legislative reforms, and an even greater openness to foreign investments, the UAE positions itself as a leading commercial hub for international investors. The opportunity to access a flourishing market in future-oriented sectors makes the UAE a strategic choice for any company looking to expand globally.

Source:

UAE approves National Investment Strategy 2031, boosts socio-economic policies – gulfbusiness.com