UAE launches strategy to triple cumulative FDI balance to Dh2.2 trillion by 2031
The information came to light during the second day of the annual meeting of the government officials.
A total of Dh2.2 trillion has been targeted by Sheikh Mohammed bin Rashid Al Maktoum, the Vice President , the Prime Minister , and the Ruler of Dubai in order to triple the FDI in the United Arab Emirates (UAE) by the year 2031. This announcement was made on Tuesday.
The second day of the Abu Dhabi Government Annual Meetings saw the presentation of the National Investment Strategy 2031 , which will conclude tomorrow.
Three national pathways which centered on national identity, family and artificial intelligence formed part of this year’s meetings. In addition, national priorities were also discussed as part of eight panel discussions involving heads of federal and local government entities.
The attendees of the meeting include more than 500 dignitaries, rulers, crown princes, as well as federal and local government officials.
Sheikh Mohammed referred to the newly presented strategy by saying: “What visions strive for – clear goals – brings about exceptional results and achievements today. The surge of 35 percent in the Dh 112.6 billion foreign direct investment inflows the UAE has received in the year 2023, even though all other nations have been on the downward trend, is a true testament of the effectiveness of our strategies and our nation’s confidence in the international arena.”
During the session that saw Sheikh Mohammed in attendance, the Minister of Investment Mohamed bin Hassan Al Suwaidi observed the signs of a remarkable FDI growth pattern in the country with the UAE portion of global FDI inflows enjoying an increase of 5.5 times of its 2015 level while inflows rose by 17.3% in the country, even as the world inwards inflows saw a decline of 5.3%.
The said strategy is in line with the strategy called ‘We the UAE 2031’ which aims to position the country as a global investment center by taking a lead in new sectors, attracting global talents, and promoting Emirati authorities, creativity, and entrepreneurship, Dubai Media office concluded.
Coordinating with a working vision to target sectors such as advanced manufacturing and renewable energy, the strategy explains the intention to increase total FDI two-fold to reach Dh 1.3 trillion (comprising 30% of the overall vol. of nat Invest) and increase total FDI balance three-fold reaching Dh 2.2 trillion by the year 2031. This will be achieved through five strategic directions: attracting new investments in priority sectors, expanding FDI in existing projects, strengthening international partnerships, enhancing investor relations, and boosting the UAE's overall competitiveness,” it added.
In the year 2023, UAE stood second in terms of ranking globally after the USA when it comes to foreign FDI new projects in the country with 1,323 new projects being commenced, which amounts to a 33% rise from the 2022 figures.
Economic prospects in UAE are growing at an attractive 35% with respect to the increase from 2022 to 2023 with Dh 112.6 billion as reported in UNCTA’s annual report. With respect to earnings through foreign investments, the country witnessed ranking advancements growing from 16th position to now 11th and this shift happened in mere four years between 2018 and 2023.
Al Suwaidi made it clear that regarding the balance of cumulative foreign investments within FDI, the United Arab Emirates has been on an upward slope with the rate and the growth in FDI to be 150%, surpassing the average global growth rate by almost 53%.
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