UAE expands efforts to attract investment in key sectors

The UAE is ramping up efforts to attract investments in financial services, pharmaceuticals, technology, and manufacturing while simplifying business setup processes, Minister of Investment Mohamed Alsuwaidi said at the Investopia conference in Abu Dhabi.

Financial services hold significant growth potential, he noted, particularly in asset management, insurance, banking, and FinTech. “We are still far behind where we would like to be,” he said, emphasizing room for expansion in these areas.

Pharmaceuticals and biosciences are also a priority, with a focus on drug discovery, medical devices, and genome sequencing. The UAE is investing in research and development to drive innovation in these fields.

As part of its economic diversification strategy, the UAE aims to double foreign direct investment to $354 billion by 2031. In 2023, the country attracted $30.68 billion in FDI, a 35% annual increase, and ranked as the second-largest global market for greenfield investment after the U.S., according to the UN Conference on Trade and Development.

Manufacturing, artificial intelligence, and renewable energy also present growing opportunities. Robotics and AI-related technologies are expected to be major areas of development.

Alsuwaidi highlighted ongoing legal reforms to enhance the business environment, including further improvements to the commercial companies law. Since 2020, the UAE has allowed full foreign ownership of onshore businesses, boosting investor confidence.

Efforts are also underway to improve data transparency for investors. “Providing consistent and updated market data is crucial,” Alsuwaidi said, adding that the government is working with key ministries to ensure better access to economic information.