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UAE to become global hub for 'innovation-based economy' by next decade, says minister

Today, the country's non-oil sector accounts for about 74 per cent of the total GDP

Published: Wed 18 Sep 2024, 12:11 PM

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Photo: WAM

Photo: WAM

UAE will become a leading global hub for the new economy by the next decade due to legislative developments and economic policies adopted by the country over the past few years, said Abdullah bin Touq Al Marri, Minister of Economy.

“We now have an ambitious vision, which is to build a national economy based on knowledge and innovation by the next decade, to become a strong driver in achieving comprehensive development for the UAE, and to contribute in achieving the sustainable development goals,” he said.

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Highlighting some of the initiatives at the Sharjah Investment Forum on Wednesday, he said the UAE amended the Commercial Companies Law allowing 100 per cent foreign ownership and establishment of companies; updated visa and residency systems, including new paths for independent business owners and green residency, to enhance the UAE’s attractiveness to talent, entrepreneurs and innovative projects; and issued the Federal Law on Family Businesses and Dispute Resolution Mechanisms, which consolidates the UAE’s position as a global leader in regulating family business environments.

He elaborated that the UAE also announced developing the National Economic Registry in line with global best practices; promoting green growth policies and the circular economy, including the goal of reaching net zero emissions by 2050; and launching comprehensive economic partnership agreements with major emerging markets and developing countries such as India, Indonesia, and Turkey, opening new horizons that include a fifth of the world's population.

The UAE’s non-oil foreign trade reached a record level of Dh1.4 trillion ($382 billion) in the first half of 2024, rising by 11.2 per cent year-on-year, with non-oil exports growing by 25 per cent. The number of commercial licences has doubled since the renewal of the Companies Law, reaching a record high of 900,000 commercial licences – around 107,000 of which are in Sharjah.

The UAE attracted nearly $31 billion in foreign direct investment inflows in 2023 and $22 billion in outward FDI flows.

Due to the national efforts, the minister added that today the country's non-oil sector accounts for about 74 per cent of the total GDP.

“We have also been keen to enhance an environment conducive to innovation and investment, and encourage entrepreneurs to establish start-up companies so that the results of our national economy speak for themselves and achieve strong indicators praised by reports from international institutions.”

The minister stated that the global economy faces challenges, economic uncertainty, price fluctuations and geo-economic fragmentation. “Given that the UAE has an effective role at the regional level, our national economy is not immune to these challenges. However, we believe that our country has all the necessary tools to confront these challenges,” he said during the opening remarks at the Forum.

The minister assured that the UAE is committed to its open economic policies, increasing integration into the global trading system, and enhancing the competitiveness of its investment environment, as these pillars are essential to building a knowledge-based economy and maintaining flexibility and adaptability in the face of current and future challenges.

Al Marri said Sharjah enjoys diverse economic and investment characteristics and assets and remains a major force in the economic diversification of the UAE, with nearly 96 per cent of its economic activity coming from non-oil sectors.

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