UAE launches strategy to triple cumulative FDI balance to Dh2.2 trillion by 2031

The announcement was made on the second day of the government's annual meetings

Published: Tue 5 Nov 2024, 5:01 PM

Updated: Tue 5 Nov 2024, 7:43 PM

By
Web Desk

Photo: Sheikh Mohammed/X

UAE has launched a strategy to triple cumulative foreign direct investment (FDI) balance to Dh2.2 trillion by 2031, Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai announced on Tuesday.

The National Investment Strategy 2031 was unveiled on the second day of the UAE's Government Annual Meetings which are taking place in Abu Dhabi and conclude on Wednesday.

The agenda of this year's meetings comprises three national pathways, with focus on national identity, family and artificial intelligence. It also includes eight panel discussions on national priorities, with the participation of heads of federal and local government entities.

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Over 500 dignitaries, including rulers, crown princes, and federal and local government officials, will be in attendance.

Sheikh Mohammed commented on unveiling the new strategy by saying: “Clear goals lead to great achievements. The UAE’s remarkable surge of 35% in foreign direct investment inflows to Dh112.6 billion in 2023, despite a global decline, affirms the success of our strategies and the high level of international confidence in our nation.”

During the session attended by Sheikh Mohammed, Mohamed bin Hassan Al Suwaidi, Minister of Investment, highlighted the UAE's impressive FDI growth since 2015, with its share of global flows increasing 5.5 times and inflows rising 17.3% despite a global decline of 5.3%.

The strategy, aligned with the "We the UAE 2031" vision, aims to establish the UAE as a global investment hub by leading in emerging sectors, attracting top talent, and fostering Emirati leadership, innovation, and entrepreneurship, Dubai Media Office said in a statement.

"Targeting key sectors like advanced manufacturing and renewable energy, the strategy seeks to double cumulative FDI to Dh1.3 trillion (30% of national investment volume) and triple the cumulative FDI balance to Dh2.2 trillion by 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 2023, the UAE ranked second globally after the United States in the number of new foreign direct investment projects, with 1,323 new projects—a 33% increase from 2022.

In 2023, the UAE saw FDI inflows surge to approximately Dh112.6 billion, a striking 35% increase from Dh83.5 billion in 2022. The country advanced five positions to rank 11th globally in FDI attraction, according to a UNCTAD report.

In terms of cumulative FDI balance, Al Suwaidi noted that the UAE has significantly outpaced global growth rates over the past decade. From 2013 to 2023, the UAE’s FDI balance increased by 150%, far exceeding the global average growth rate of 97%.

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