In a significant move to enhance foreign investment, the United Arab Emirates has announced the establishment of a national investment fund with a capital of $10 billion. This initiative is poised to strengthen the nation’s economic landscape, marking an ambitious step toward increasing foreign direct investments and reflecting the UAE’s commitment to fostering a thriving investment environment.
Details of the National Investment Fund
During a recent federal government meeting, the UAE government officially approved the creation of the national investment fund. With an initial capital of approximately 36.7 billion dirhams (about $9.99 billion), the fund aims to attract foreign investment through targeted financial incentives.
Vision for Foreign Direct Investment
Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE, Prime Minister, and Ruler of Dubai, emphasized the fund’s objectives in a post on his official account on “X.” He stated, “The goal of the fund is to stimulate incoming foreign direct investments through financial support packages and to achieve our targets of increasing them from 115 billion dirhams annually to 240 billion dirhams by 2031, raising the accumulated amount from 800 billion to 2.2 trillion dirhams in the same year.”
Support for Gulf Cooperation Council Citizens
Continuing his remarks, Sheikh Mohammed highlighted the UAE’s commitment to supporting foreign investments. He noted that the nation currently holds the largest number of licenses granted to citizens of Gulf Cooperation Council (GCC) countries, totaling 36,000 licenses. Additionally, he pointed out that there are 52,000 Gulf nationals who own properties in the UAE, as well as 7,500 students from GCC countries studying at UAE universities.
Boosting the Industrial Sector
During the federal government meeting, Sheikh Mohammed also revealed that national spending on the industrial sector has exceeded 110 billion dirhams, representing a staggering 244% increase over the last five years. He mentioned that UAE industrial exports reached 197 billion dirhams and that the industrial sector contributes 210 billion dirhams to the Gross Domestic Product (GDP), with a goal to increase this figure to 300 billion dirhams by 2031.