Flexible capabilities and policies that push the UAE to the forefront of global competitiveness

The UAE has strengthened its leading position as a global destination for promising investment opportunities, and an influential player in the global economy, by acquiring 45.4% of the total foreign direct investments flowing to the group of Arab countries amounting to 248.3 billion dirhams in 2023.

Economic diversification and an economic environment conducive to sustainable growth have enabled the UAE to maintain its position at the forefront of the countries most attractive to investment in the Arab world and regionally, and to achieve comprehensive development around the world, which was evident in the record growth in foreign direct investment flows to the UAE, which increased by 35% and reached 112.6 billion dirhams. In 2023, according to the 2024 Global Foreign Direct Investment Report issued by UNCTAD.

The UAE topped the list of countries most attractive to foreign direct investments, thanks to the flexible and competitive capabilities and policies provided by the UAE, for establishing businesses and various economic activities and establishing pioneering emerging projects.

The state encourages investment in all economic sectors, especially new sectors such as technology, artificial intelligence, space sciences, health care, and other sectors of the new economy, which enhances opportunities for growth and prosperity, and this is reflected in the high level of per capita income and corporate returns.

Through integrated economic development plans, it has been able to be a pioneering country in the performance of its economy and the competitiveness of its investment environment, based on the vision of the wise leadership, which constitutes one of the most important capabilities contributing to transforming the UAE into a global destination for investment, as smart government capabilities have been activated and modern administrative approaches have been adopted. In the administration of the state, the UAE has today become a promising economic model, attracting the attention of investors from around the world.

The main capabilities, which are represented by a proactive government vision, a free economy model, empowering investors, a passion for excellence, a competitive approach, and a strategic location, have also contributed to making the country’s economic and investment environment the most attractive in the Middle East and North Africa region and a destination for investors and entrepreneurs from around the world.

The UAE has advanced legislation that stimulates investment and contributes to attracting the flow of foreign investment. The amendment to the Commercial Companies Law, which allowed foreign investors to establish companies and own them 100%, contributed to the addition of more than 275 thousand new companies, within a year and a half, while the number of companies reached More than 788 thousand companies operating in the Emirates by the end of 2023.

The “advanced and flexible legislative and legal environment” that the country is witnessing also constitutes a qualitative shift that encourages investment and business establishment, giving foreign investors the ability to establish companies and enjoy full ownership of their projects, and investment has been made available in all economic sectors and activities.

The UAE continues to work with various government and private sectors, with the aim of achieving the goals of the “We are the UAE 2031” vision, which aims to double the gross domestic product to 3 trillion dirhams, and increase non-oil foreign trade in goods to 4 trillion dirhams.

It is worth noting that the UAE ranked second in the world after the United States in the number of new foreign direct investment projects during the year 2023, with 1,323 new projects registered, with a growth rate of about 33% compared to the previous year. (wham)