UAE Circular Economy Policies Drive New Economy Growth

The United Arab Emirates continues to expand its new economy model, using innovation and advanced technology to support long-term growth. This approach strengthens economic diversification across artificial intelligence, financial technology, green activities and advanced industries, while circular economy measures are reshaping resource use and reinforcing the country’s status as a global centre for business and investment.

As part of this shift, 22 circular economy policies have already been approved and put into practice across multiple fields. These include extended producer responsibility rules, source-based waste separation in homes, businesses and institutions, a national database covering materials and waste, controls on resource flows between emirates to back recycling projects, and measures to stop plastic and recyclable material leakage.

According to Abdullah bin Touq Al Marri, Minister of Economy and Tourism, the UAE is moving from a knowledge- and innovation-based structure towards a broader new economy model. Al Marri said this path is the current roadmap towards the economy of the future and one of four main pillars under the 'We the UAE 2031' vision, which targets making the country a global new economy hub within ten years.

The new economy direction reflects a clear national plan to build a diverse and resilient economic base led by innovation. It is supported by Emirati talent and high-quality foreign investment, while flexible legislation, targeted government initiatives and advanced infrastructure together help the UAE prepare for global economic shifts and evolving future needs.

Speaking to Emirates News Agency (WAM), Al Marri outlined how ministry projects, partnerships and programmes are supporting new economy fields. These cover advanced technology, artificial intelligence, the digital economy, e-commerce, renewable energy, the circular economy, green technologies, media, digital arts, financial technology and smart transport. Such efforts helped raise the number of companies and commercial licences in these sectors to 56,000 by the end of the first half of 2025.

Al Marri noted that collaboration with federal and local bodies, along with private sector partners, has centred on designing proactive rules and policies to speed up the UAE’s development as a global destination for new economy activities. Ten major policies and laws have been issued or updated, including the Law on Trading by Modern Technological Means, the Law on the Regulation and Protection of Industrial Property Rights, the Copyright and Neighboring Rights Law, and the Commercial Transactions Law.

Discussing the national policy for economic clusters, Al Marri explained that it represents a key tool to increase the new economy share of the UAE’s gross domestic product. Work is progressing with partners on a food economic cluster that links agricultural production, food industries and modern agricultural technologies within one coordinated and integrated ecosystem.

The food cluster is designed to raise the contribution of food activities and related services to national GDP, while improving competitiveness and enabling private sector companies in this fast-growing area. Al Marri reported that 40,486 national and international trademarks in this field were registered and operating by the end of the first half of 2025, highlighting the sector’s scale.

Al Marri also referred to the UAE Circular Economy Council’s work on a second package of policies to speed the national transition towards a circular economy model, in line with the UAE Circular Economy Agenda 2021-2031. These measures include a national roadmap for green infrastructure, circular water management for industries, national guidance for multi-material product design, improved reverse logistics and supply chains, support for high-impact waste-reduction projects, and empowerment tools for small and medium-sized enterprises active in circular fields.

The council’s planned policies further address reducing food loss and waste, better management of agricultural resources, wider use of recycled content in consumer products, and regulation of tyre and biodiesel life cycles. They also cover electric vehicle infrastructure and unified charging systems, support for sustainable aviation fuel development, and tighter regulation of operating leases and waste oil management, creating a more efficient and sustainable industrial and transport environment.

Together, the UAE’s new economy strategy, circular economy actions, legislative updates and cluster initiatives are reshaping growth patterns across sectors. These steps strengthen diversification, raise competitiveness and improve resource efficiency, while positioning the country to handle global economic changes and sustain development across innovation-driven industries in the years leading up to 2031 and beyond.

With inputs from WAM