The UAE’s economic diversification strategy plays a pivotal role in shaping its future: Juma Al Kait

The UAE is charting an ambitious course towards economic diversification with the goal of significantly increasing foreign direct investment (FDI) and reducing reliance on oil. Speaking at the Gulf News' Invest UAE seminar, at the V Hotel in Al Habtoor City, Juma Al Kait, Assistant Undersecretary for Foreign Trade Affairs at the UAE Ministry of Economy, outlined the nation’s strategy to shape a sustainable economic future by 2031.

“The UAE’s economic diversification strategy plays a pivotal role in shaping its future,” Al Kait stated, emphasizing the country’s determination in positioning itself as a global investment hub. With the bold objective to double FDI inflows to Dh1.3 trillion and triple the FDI balance to Dh2.2 trillion, the UAE is actively reducing its dependency on oil and embracing innovative industries. “This is very, very important,” he reiterated.

Al Kait highlighted the UAE’s commitment to fostering an optimal investment ecosystem, focusing on emerging technologies and industrial capabilities. “The UAE’s future won’t be built on oil, but on innovation and imagination,” he said. The National Investment Strategy 2031, launched recently, aims to direct investments into transformative sectors such as artificial intelligence, blockchain, renewable energy, agritech, healthcare, and education.

“FDI is helping us pursue the possibilities of AI and blockchain. It is enabling us to develop new sectors of energy and new ways to grow food. It is supporting the integration of additive manufacturing and robotics into our industrial base. It is fueling breakthroughs in healthcare and education,” Al Kait elaborated. “Our investment targets aren’t simply about numbers on spreadsheets. They are real projects that can drive real change.”

The UAE’s efforts in attracting investments have already yielded impressive results. In 2023, the country climbed to 11th place globally in FDI attraction, according to the United Nations Conference on Trade and Development. Additionally, it ranked second in Greenfield FDI, with over 1,300 new projects initiated within its borders. “We captured 45.5% of all FDI that flowed into the Arab states,” Al Kait noted, underscoring the UAE’s role as a dominant player in regional investment.

Economic diversification has long been a priority for the UAE, with early oil revenues fueling infrastructure development, including world-class ports, airports, and free zones. Today, the focus has shifted to fostering a pro-business environment, enabling 100% foreign ownership, fast-tracking company incorporation, and providing robust intellectual property protection. “We are number one in the Global Entrepreneurship Monitor global ranking and rank seventh in the World Competitiveness Index,” he added.

As the UAE continues to forge strategic global partnerships through Comprehensive Economic Partnership Agreements (CEPAs), the nation is strengthening its trade ties with a quarter of the world’s population. “In 2024, our non-oil foreign trade grew seven times more than the global average,” Al Kait stated, reinforcing the effectiveness of the country’s forward-thinking economic policies.

Quoting the UAE leaders, Al Kait concluded, “Clear goals lead to great achievements, and everyone here today has a role to play in delivering them.”

Free Zones Authority of Ajman is Platinum Sponsor; Strategic sponsors are Sharjah Media City (Shams), Meydan Free Zone and Triliv; Rakez and Shuraa/ Dart are Silver Sponsors.

 Support partners are Ahmad Alagbari Chartered Accountants, Hussain Al Shemsi Chartered Accountants, Fame Advisory, Liberty Business Commercial Brokers, Helios Consultancy, and AKW Consultancy. V Hotel is Venue Partner, Arpan Flower is Flower Partner, and Trophy Partner is Crystal Gallery.