The Ministry of Economy has been actively developing effective policies and legislation to support the growth of the new economic model and encourage investment in key sectors, according to its top official. Abdulla bin Touq Al Marri, Minister of Economy, emphasized that the UAE government is dedicated to enhancing and implementing policies and initiatives that boost investor confidence, including legal frameworks, financial incentives, and intellectual property protection measures. "The UAE has experienced strong economic growth and is steadily aiming to increase the gross domestic product to Dh3 trillion by 2031," Al Marri stated during an interview. Despite global and regional uncertainties, the UAE has achieved remarkable GDP growth and strengthened its position among the top 10 countries globally in various GDP-related competitiveness indicators. It ranked fifth in the Real Economic Growth Rate Index and sixth in GDP per capita in the IMD World Competitiveness Yearbook 2023.
The UAE economy has shown robust growth post-Covid, characterized by an open and competitive legislative environment. The country has implemented forward-looking economic strategies and flexible policies to diversify the economy, with significant reforms accelerating post-Covid. Over the past three years, the UAE has amended over 13 laws in various economic sectors, particularly the new economy, and expanded non-oil activities and sectors. As a result, over 788,000 companies operate in the UAE markets, with about 557,000 SMEs by the end of 2022. In 2023, the economy grew by 3.6 percent in real terms, a robust performance amid global and regional uncertainties, and higher than global and GCC averages.
Non-oil sectors contribute significantly to the UAE’s GDP, with 74 percent of the national economy being non-oil-based. The non-oil GDP grew by 6.2 percent last year. The UAE has expanded non-oil activities and sectors, focusing on new, sustainable, innovative, and knowledge-based sectors. The next phase will focus on accelerating the green transition and developing economic clusters across various sectors and regions. The private sector plays a crucial role in economic growth and innovation, and the government is committed to supporting it through policies and initiatives that enhance investor confidence and protect intellectual property.
The Ministry of Economy is dedicated to promoting innovation and attracting investments in key sectors, including the industrial sector. The new industrial property law aims to drive growth based on knowledge and innovation. The UAE also focuses on the circular economy, leveraging its advantages to build a sustainable future. The government is keen to boost FDI inflows in R&D, considering a robust R&D ecosystem essential for economic development. The tourism sector remains a key contributor to the UAE economy, with significant growth and strategic initiatives aimed at enhancing its role in the national economy.
