UAE's Vision for an Innovation-Based Economy: Pioneering Global Leadership by 2034

The UAE is on a transformative journey to become a leading global hub for the new economy, driven by visionary legislative developments and forward-thinking economic policies. Abdullah bin Touq Al Marri, the UAE's Minister of Economy, highlighted this ambitious vision during his address at the Sharjah Investment Forum.

A Vision for a Knowledge-Based Economy

Minister Al Marri emphasized the UAE's commitment to building a national economy rooted in knowledge and innovation. This vision aims to propel the UAE towards comprehensive development, aligning with the country's sustainable development goals.

Key Legislative and Economic Initiatives

Several significant legislative and economic initiatives were outlined by the Minister:

Commercial Companies Law Amendment: The UAE has amended its Commercial Companies Law, allowing 100% foreign ownership and establishment of companies. This move is designed to enhance the UAE's appeal to global investors.

Updated Visa and Residency Systems: New visa and residency paths for independent business owners and green residency have been introduced, aiming to attract talent, entrepreneurs, and innovative projects to the UAE.

Federal Law on Family Businesses: The issuance of the Federal Law on Family Businesses and Dispute Resolution Mechanisms underscores the UAE’s commitment to becoming a global leader in regulating family business environments.

National Economic Registry: Development of the National Economic Registry is underway, aligning with global best practices to promote transparency and efficiency.

Green Growth Policies: The UAE is committed to green growth and the circular economy, with a goal of achieving net zero emissions by 2050.

Comprehensive Economic Partnership Agreements: The UAE has launched partnership agreements with major emerging markets and developing countries, including India, Indonesia, and Turkey, covering nearly a fifth of the world's population.

Record-Breaking Economic Performance

The UAE's non-oil foreign trade reached a record Dh1.4 trillion ($382 billion) in the first half of 2024, marking an 11.2% year-on-year increase. Non-oil exports grew by 25%, and the number of commercial licenses doubled, reaching a record 900,000. The country attracted nearly $31 billion in foreign direct investment (FDI) inflows in 2023 and $22 billion in outward FDI flows.

Sharjah: A Major Force in Economic Diversification

Sharjah remains a significant contributor to the UAE's economic diversification, with 96% of its economic activity derived from non-oil sectors. The Emirate's diverse economic and investment characteristics make it a pivotal player in the UAE's broader economic strategy.

Confronting Global Economic Challenges

Acknowledging global economic challenges such as uncertainty, price fluctuations, and geo-economic fragmentation, Minister Al Marri assured that the UAE is equipped with the necessary tools to confront these challenges. The country's open economic policies, increased integration into the global trading system, and competitive investment environment are essential pillars for building a resilient, knowledge-based economy.

The UAE's strategic initiatives and legislative reforms position it as a burgeoning global hub for the new economy. With a strong focus on knowledge, innovation, and sustainability, the UAE is well on its way to achieving its ambitious vision for the next decade, contributing significantly to global economic development and stability. For personalized advice and insights into the best investment opportunities, feel free to reach out at info@novara.ae