UAE Investment Policy Outlook
The article discussed the efforts of the United Arab Emirates to diversify its economy by attracting foreign direct investments. These investments increased from modest levels at the start of the millennium to more than half of the GDP by 2025, surpassing the average for Gulf countries and approaching the levels of Organisation for Economic Co-operation and Development (OECD) member states. Reform policies focused on liberalizing investment laws, including the abolition of the Foreign Direct Investment Law in 2018 and amendments to the Company Law in 2021. These changes allowed foreign ownership of up to 100% in many sectors, with strategic exceptions such as defense and financial services. Additionally, a decentralized framework was established to promote investment across all Emirates, along with improved regulatory markets to boost confidence. This was followed by the development of a national strategy that identified key sectors and future initiatives. These reforms contributed to increased investments in new projects, particularly in renewable energy and digital sectors, while also strengthening the capabilities of the labor market and digital transformation, and improving the participation of Emirati citizens in employment—aimed at supporting sustainable economic diversification.
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