UAE approves National Investment Strategy 2031, plans $65.4 billion in annual foreign inflows

The United Arab Emirates plans to increase annual foreign investment inflows from AED 112 billion ($30.5 billion) in 2023 to AED 240 billion ($65.4 billion) by 2031, and to increase its total foreign investment from AED 800 billion to AED 2.2 trillion in the coming years. This announcement was made by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, during a cabinet meeting held at Qasr Al Watan in Abu Dhabi on Monday.

The cabinet approved the "National Investment Strategy 2031," which focuses on transforming the UAE into a leading global hub for strategic investment, strengthening its position as a key center for attracting foreign direct investment and supporting national economic growth. The strategy includes identifying the five most important priority sectors based on their contribution to new foreign direct investment inflows: industry, financial services, transportation and logistics, renewable energy and water, and telecommunications and information technology.

The strategy includes 12 new projects under strategic directions, as well as 30 initiatives under these projects, most notably: the Financial Sector Development Program, the Single Market Program, the Institutional Innovation Attraction Program, the Partner Country Portal Program, "InvestUAE," the Investment Office, and promotion incubators. These initiatives are expected to significantly boost the UAE's investment landscape.

Current investment results indicate a total foreign direct investment of AED 0.8 trillion and annual foreign direct investment inflows of AED 112 billion. According to the strategy, the targets for 2031 are to increase the stock of foreign direct investment to AED 2.2 trillion, increase annual foreign direct investment inflows to AED 240 billion, increase the share of foreign direct investment in total investment (domestic and foreign) to over 30%, and increase the contribution of foreign direct investment to GDP to 8%.

The cabinet also assessed the implementation results of the Industrial Technology Transformation Program, which includes the launch of the Industrial Technology Transformation Index (ITTI), the first indicator to measure the technological progress and sustainable development practices of factories. It also reviewed the progress of the "National Digital Economy Strategy 2031," which aims to increase the contribution of the digital economy to GDP from 9.7% to 19.4%.

The cabinet also approved the federal government's remote work system from outside the UAE, which aims to leverage global talent and expertise outside the UAE to perform specialized work tasks, complete projects, and conduct research related to government operations. This initiative will allow the government to access a wider pool of skilled professionals.

Sheikh Mohammed said: "We also reviewed the National Digital Economy Strategy, which aims to increase the contribution of the digital economy to GDP from 9.7% to 19.4%. We remain committed to strengthening the UAE's position in the global digital economy over the next six years through ambitious national initiatives and projects."

In economic affairs, the cabinet reviewed the progress of the UAE's strategic partnerships with African countries, with 95% of previously approved initiatives having been successfully implemented. In addition, total trade with sub-Saharan Africa increased from AED 127 billion in 2019 to AED 235 billion in five years, an increase of 87%.

Sheikh Mohammed said: "The UAE will continue to build new economic bridges around the world and strengthen its role as a global trade hub, connecting global markets." This strategic approach will foster greater economic cooperation and growth.

The cabinet also approved the launch of the National Green Certificate Program for buildings. It is a classification system, which is non-mandatory in the first phase of implementation, designed to assess and certify sustainable buildings according to the highest environmental standards, targeting commercial buildings, hotels and hospitality facilities, industrial sites, government buildings, as well as houses, communities and courtyards.