UAE announces plans for investment ministry

The United Arab Emirates (UAE) has taken a significant step towards enhancing its investment landscape by creating a new ministry tasked with proposing general investment policies, strategies, and legislation. The new ministry will work in coordination with relevant authorities to bolster the country’s investment environment and bolster its competitiveness on the global stage.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice-President and Prime Minister of the UAE and Ruler of Dubai, expressed the ministry’s purpose is to further develop the investment vision of the UAE, fostering a favourable environment for investors and fortifying the competitiveness of the investment sector in the nation. He emphasised the UAE’s position as a trusted global financial hub, vowing to maintain the confidence of thousands of financial institutions and millions of investors from around the world.

The UAE has already garnered high trust from foreign investors, as evidenced by its top-ranking in the Kearney 2023 Foreign Direct Investment Index among Middle East and North Africa (MENA) countries. Additionally, Dubai continues to hold the number one spot globally for attracting Greenfield Foreign Direct Investment (FDI) projects. In 2022, the city achieved an 89.5 percent year-on-year growth in total announced FDI projects, while FDI capital surged by 80.3 percent.

The government’s commitment to investment growth is further demonstrated by its approval of the updated National Energy Strategy 2050, which aims to triple the contribution of renewable energy by 2030, making substantial strides towards climate neutrality and reducing the impact of climate change. The strategy targets financial savings of up to Dh100 billion by 2030 and increased national energy investments between Dh150-200 billion until 2030.

In line with the growing importance of hydrogen as a clean energy source, the government also approved a national hydrogen strategy. The UAE aims to consolidate its position as a producer and exporter of low-emission hydrogen within the next eight years. The strategy includes the development of supply chains, establishment of hydrogen oases, and the creation of a specialised national centre for research and development of the hydrogen sector.

Moreover, the UAE has green-lit the establishment of the Financial Stability Council, aimed at enhancing financial stability and monitoring risks to address potential financial crises and ensure the steady growth of the national economy.

With these new measures and strategies in place, the UAE is reinforcing its commitment to being a global leader in investment and clean energy, bolstering its economic position and attracting more international investors.