UAE Launches $10 Billion Fund to Achieve $600 Billion FDI Goal by 2031

The United Arab Emirates (UAE) has officially announced the establishment of a National Investment Fund with an initial capital of AED 36.7 billion ($10 billion), as confirmed during a recent Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai. This meeting took place at the Dubai Airshow, highlighting the UAE’s ongoing commitment to boosting its economic landscape.

Strategic Economic Initiatives Reviewed

During the session, various economic, industrial, aviation, and social achievements for the year 2024 were reviewed. The Cabinet advanced several national strategies focusing on identity enhancement, family cohesion, food security, and environmental sustainability. Sheikh Mohammed emphasized the importance of the Dubai Airshow, stating, “The UAE continues to support this global platform, which brings together delegations from 115 countries and more than 150,000 specialists, reinforcing our position as a key contributor to shaping the future of the global aviation sector.”

Objectives of the National Investment Fund

Sheikh Mohammed outlined the core objectives of the newly established National Investment Fund. He stated, “The fund aims to encourage incoming foreign direct investment through financial incentive packages and seeks to increase the annual FDI from AED 115 billion ($31.3 billion) to AED 240 billion ($65.4 billion) by 2031. Our goal is to elevate total accumulated FDI from AED 800 billion ($217.8 billion) to AED 2.2 trillion ($599.1 billion).”

He further communicated a clear message to potential global investors: “The UAE welcomes you. The UAE will provide the world’s best environment for investment. The UAE will continue to support your growth and long-term success.” The Cabinet confirmed that the Fund will target high-impact companies through direct federal financing and collaboration with economic, investment, and tourism authorities across various emirates.

Growth in the Industrial Sector

Sheikh Mohammed also reported significant progress in the National Strategy for Industry. He highlighted that national industrial spending has now surpassed AED 110 billion ($29.9 billion), marking a 244% increase over the past five years. Industrial exports have reached AED 197 billion ($53.7 billion), contributing AED 210 billion ($57.2 billion) to the national GDP. The target for the industrial sector is set at AED 300 billion ($81.7 billion) by 2031.

Furthermore, the Cabinet approved the UAE National Identity Strategy, which includes seventy initiatives aimed at strengthening national identity among younger generations, fostering a sense of belonging, and reinforcing family cohesion within society.

Family Growth and Social Initiatives

The Cabinet also approved the National Family Growth Agenda 2031, targeting increased marriage and birth rates among UAE nationals while improving the quality of family life. This agenda consists of three essential tracks: policies and programs, behavioral interventions, and reproductive health.

Review of GCC Economic Cooperation

The meeting also included a review of developments in joint GCC economic actions. Sheikh Mohammed noted that the UAE currently holds the highest number of economic licenses issued to citizens of other GCC countries, totaling 36,000. Moreover, the UAE is home to over 52,000 property owners from other GCC countries and boasts the largest number of students from these countries in its public higher education institutions, totaling 7,500. Trade between the UAE and GCC nations reached AED 333 billion ($90.6 billion).

Achievements in Civil Aviation

The Cabinet assessed civil aviation accomplishments for 2024, highlighting that the aviation sector contributed AED 340 billion to the GDP, representing 18.2% of the total. Passenger numbers increased by 10% from 2023, reaching 148 million. Additionally, air traffic operations rose 11%, and the UAE signed 190 air transport agreements globally. The nation ranked first in air transport infrastructure quality, second in aviation safety compliance, and fifth in overall air transport quality.

New National Policies Introduced

New national policies were also approved by the Cabinet, which include:

• A national policy for classifying natural reserves
• Development of a federal law concerning plant genetic resources for food and agriculture
• Resolutions regarding services offered by the Ministry of Energy and Infrastructure and the Ministry of Foreign Trade
• Measures designed to enhance tax system efficiency and facilitate digital trade

Food Security and Re-Export Activities

The Cabinet reviewed the 2024 achievements of the UAE Food Security Council, which included establishing a national food cluster, launching baseline indicators for food loss and waste, implementing the Food Conservation Programme, and undertaking community initiatives aimed at achieving zero food waste by 2030. The National Re-Export Development Agenda recorded AED 717.8 billion ($195.7 billion) in re-export activity, with growth of 5% contributing to 24.5% of non-oil trade.

Approval of International Agreements

The Cabinet also ratified several international agreements, including:

• An investment protection agreement with Sri Lanka
• Visa exemption agreements with Trinidad and Tobago and Antigua and Barbuda
• A general agreement for electricity interconnection within the GCC
• Hosting the headquarters of the Union of Arab Securities Authorities

Additionally, the Cabinet announced the reconstitution of the Federal Traffic Council under the Ministry of Interior, reflecting its ongoing commitment to improve governance and regulatory frameworks.

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