UAE Ministry Of Investment Targets AED 1.3 Trillion In Cumulative FDI By 2031

The UAE Ministry of Investment is prioritising economic diversification and sustainability as key elements of its National Investment Strategy. Mohammad Abdulrahman Alhawi, the ministry's Undersecretary, highlighted the release of a white paper at the World Economic Forum in Davos 2025. This document outlines plans to position the UAE among the top 10 global investment destinations, aiming for AED1.3 trillion in cumulative foreign direct investment (FDI) from 2025 to 2031.

Alhawi stated, "This white paper serves as a roadmap demonstrating how we will achieve our goal to make the UAE a top 10 global destination and expand the economy to AED1.3 trillion in cumulative FDI from 2025 to 2031, with a focus on the priority sectors of manufacturing, financial services, transport & logistics, utilities & renewables and, information & communications technology (ICT). In short, releasing this white paper now is a key step towards ensuring that we continue to grow a resilient, high-growth, innovation-driven, long-term economy."

The white paper also highlights significant achievements in artificial intelligence (AI) projects globally from 2016 to 2023. According to fDi Markets data, there were 778 AI-related projects worth $26.8 billion announced worldwide during this period. The UAE is leading digital transformation efforts in the region by fostering an environment conducive to technological innovation and data-driven solutions.

Microsoft's $1.5 billion investment in Abu Dhabi’s AI company G42 underscores this commitment. The UAE continues building strong capabilities in AI, cloud computing, and cybersecurity while focusing on strategic investments in digital transformations. These efforts are part of broader initiatives aimed at enhancing technological infrastructure and fostering innovation.

In 2023 alone, the UAE attracted $16 billion in capital inflows with major contributions from countries like the United States ($3.8 billion), India ($3.3 billion), United Kingdom ($1.2 billion), France ($1.1 billion), and Saudi Arabia ($1.1 billion). The country ranked second globally after the United States for attracting greenfield FDI during that year.

The UAE's investor-friendly environment and robust connectivity to global markets have made it an attractive destination for investors worldwide. This has created lasting value for investors while contributing significantly to the global economy.

Vision for a Diversified Economy

Under the initiative ‘We the UAE 2031’, there is a strong focus on building an innovation-driven economy supported by comprehensive strategies like the National Investment Strategy. FDI plays a crucial role as it stimulates GDP growth and fosters an entrepreneurial ecosystem through business-focused policies.

This vision is supported by solid infrastructure—both physical and digital—and enhanced market access through Comprehensive Economic Partnership Agreements (CEPAs). These components collectively create an environment where businesses can thrive globally while maintaining resilience against economic challenges.

Policy Frameworks Driving Growth

The UAE exemplifies how investor-centric policy frameworks can drive business sustainability alongside economic growth. Alhawi emphasised that these policies are designed not only for immediate gains but also for long-term stability within various sectors such as manufacturing or ICT.

The strategic approach ensures that investments contribute positively towards achieving national goals while aligning with international standards of excellence across different industries.

This comprehensive strategy aims at establishing a diversified economy driven by innovation underpinned by robust infrastructure development initiatives across multiple sectors including finance or logistics among others.

With inputs from WAM