The United Arab Emirates is ramping up initiatives to draw investments across key sectors, including financial services, pharmaceuticals, technology, and manufacturing, according to Minister of Investment Mohamed Alsuwaidi. Speaking at the Investopia conference in Abu Dhabi, he emphasized the government’s commitment to simplifying business processes and making the Emirates an even more attractive hub for global enterprises.
Financial services remain a major focus, with significant potential for expansion. “We are still far from where we aim to be in financial services,” Alsuwaidi stated, highlighting opportunities in asset management, insurance, banking, and FinTech. He underscored the need to strengthen these sectors to position the UAE as a global financial powerhouse.
Pharmaceuticals, biosciences, and drug discovery are also at the forefront of the UAE’s investment strategy. Alsuwaidi noted the country’s advancements in genome sequencing and research and development, which are paving the way for breakthroughs in medical technology and drug innovation. “The UAE has carved a distinct path in innovation, dedicating significant resources to scientific progress that will lead to new drug discoveries and medical advancements,” he said.
The UAE’s ambition to diversify its economy is reflected in its goal to double foreign direct investment (FDI) to AED 1.3 trillion ($354 billion) by 2031. In 2023, the country attracted $30.68 billion in FDI, marking a 35% increase from the previous year, according to the UN Conference on Trade and Development. Additionally, the UAE ranked as the second-largest global market for greenfield FDI, following the United States, demonstrating its investor-friendly approach.
Beyond finance and healthcare, the UAE sees major opportunities in manufacturing, artificial intelligence, and renewable energy. Robotics and AI-driven innovations are expected to play a key role in shaping the country’s economic future. Alsuwaidi emphasized the need to refine corporate regulations to further enhance ease of business and transparency for investors.
Recent reforms, such as eliminating the requirement for Emirati shareholders in onshore companies, have made the UAE a more attractive destination for foreign investors. The government is also working to improve data accessibility, ensuring investors have real-time insights into market trends.
Minister of Economy Abdulla bin Touq highlighted the UAE’s resilience amid global economic uncertainties, noting an annual GDP growth of 4.7% over the past five years. The non-oil sector has been particularly robust, expanding by 6% annually. In the first half of 2024 alone, the UAE’s economy grew by 3.6%, reaching AED 879.6 billion, with non-oil GDP accounting for 75% of this figure.
Khaldoon Al Mubarak, CEO of Mubadala, stressed the UAE’s long-term commitment to innovation, pointing to strategic investments in clean energy, artificial intelligence, and healthcare. The establishment of MGX, a technology investment firm focused on AI, exemplifies the nation’s dedication to advancing cutting-edge industries. Mubadala itself was the world’s largest sovereign wealth fund investor in 2024, outpacing Saudi Arabia’s Public Investment Fund with $29.2 billion deployed across 52 deals.
The UAE’s international investment footprint is also expanding, particularly in Turkey. Bilateral trade and investment ties have strengthened since the signing of a Comprehensive Economic Partnership Agreement two years ago. These growing partnerships further reinforce the UAE’s position as a global investment hub, leveraging its strategic location, business-friendly policies, and focus on innovation-driven growth.