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PM says UAE to set up investment ministry

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DUBAI (Reuters) – The United Arab Emirates (UAE) is to set up a new federal investment ministry to develop the Gulf state’s global and domestic investment strategy in response to growing economic competition from its neighbours.

The Gulf countries, which rely heavily on hydrocarbons for their income, are all developing plans to diversify their economies and revenue sources.

The UAE is considered one of the most advanced countries, ahead of its neighbors in the development of industries such as financial services and tourism, and has implemented key social and business reforms to attract foreign investment.

Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and ruler of Dubai, the tourism and commercial hub of the Gulf state, announced the plan on Twitter after a cabinet meeting, adding that Mohammad Hassan · Suwardi will be Minister of Investments.

No further details were provided.

Sheikh Mohammed said the ministry’s goals include stimulating the UAE’s investment climate and making the UAE’s legislation and procedures more competitive to attract global investment.

The UAE will also set up a Financial Stability Committee to monitor risks and respond to financial crises, so as to further realize its goal of becoming a major global financial center.

Earlier this year, Sheikh Mohammed launched a ten-year economic plan called “D33”, which aims to double the size of the economy and make Dubai one of the world’s four major financial centers within a decade.

According to the Financial Times’ 2022 ‘fDi Markets’ report, Dubai attracted some $12.8 billion in foreign direct investment capital last year. Foreign direct investment in Saudi Arabia is about 30 billion riyals ($8 billion), according to the Saudi Ministry of Investment.

The UAE Cabinet also approved an updated national energy strategy on Monday.

Reporting by Rachna Uppal and Nayera Abdallah Editing by David Goodman and Jane Merriman

Our standards: Thomson Reuters Trust Principles.

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