The United Arab Emirates (UAE) has revealed plans to establish a new federal ministry of investment aimed at developing the country’s investment strategy both domestically and globally. This initiative comes in response to increasing economic competition from neighboring nations in the Gulf region.
As Gulf states heavily rely on revenue from hydrocarbons, they are actively seeking ways to diversify their economies and income sources. Among the Gulf states, the UAE is considered one of the most advanced, having successfully developed sectors such as financial services and tourism. The country has also implemented crucial social and business reforms to attract foreign investment.
Sheikh Mohammed bin Rashid al-Maktoum, the UAE’s prime minister and ruler of Dubai, took to Twitter to announce the plans after a cabinet meeting. He further shared that Mohammed Hassan Al Suwaidi would assume the role of investment minister, although no additional details were provided at this time.
The objectives of the new ministry include stimulating the investment environment within the UAE and making legislative and procedural enhancements to increase competitiveness in attracting global investment. Additionally, the UAE will establish a Financial Stability Council to monitor risks and effectively handle financial crises, aligning with its goal of becoming a prominent global financial center.
Earlier this year, Sheikh Mohammed launched an ambitious 10-year economic plan called D33, which aims to double the size of the UAE’s economy and establish Dubai as one of the world’s top four financial centers within a decade.
According to the 2022 Financial Times “fDi Markets” report, Dubai attracted an estimated $12.8 billion in foreign direct investment capital in the previous year. In comparison, Saudi Arabia received approximately 30 billion riyals ($8 billion) in foreign direct investment, based on data from the Saudi investment ministry.
Furthermore, the UAE cabinet has approved an updated national energy strategy, highlighting the government’s commitment to energy security and sustainability.
These initiatives, including the establishment of the new federal ministry of investment, underscore the UAE’s determination to maintain its position as a leader in economic diversification, global investment attraction, and financial stability within the Gulf region
