UAE and Saudi Arabia are intensifying their efforts to diversify their economies beyond oil by unveiling a new wave of foreign investment incentives, with a strong focus on renewable energy and tourism.
These initiatives are part of long-term national strategies—such as Saudi Arabia’s Vision 2030 and the UAE’s Projects of the 50—that aim to future-proof their economies, attract global capital, and establish the Gulf region as a hub for innovation, sustainability, and international business.
In both countries, policymakers are rapidly shifting from reliance on hydrocarbons to a more diversified economic structure by introducing regulatory reforms, easing business ownership laws for foreign investors, and offering tax incentives and infrastructure support for priority sectors. The renewable energy and tourism industries are central to this transformation, as both are seen as high-growth areas that align with global sustainability goals and regional development priorities.
Saudi Arabia is aggressively promoting its renewable energy agenda through massive projects such as NEOM—a \$500 billion smart city with plans to be powered entirely by renewable sources. The kingdom is also investing in green hydrogen, with the aim of becoming one of the world’s top exporters. Recent reforms have included offering land leases for renewable projects, setting favorable power purchase agreements, and partnering with global tech and energy firms to foster local expertise. As part of its updated National Investment Strategy, Saudi Arabia has also introduced fast-track licensing processes and guaranteed profit return schemes in key clean energy zones.
Meanwhile, the UAE has expanded its own clean energy ambitions, notably through the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, which is one of the largest single-site solar parks in the world. Abu Dhabi, too, is bolstering its green credentials through partnerships with international firms to develop cutting-edge solar, wind, and hydrogen energy projects. The country has also launched green financing mechanisms to attract ESG-focused investors and has incorporated sustainability benchmarks into its national development plans.
Tourism is another cornerstone of the diversification strategy. Saudi Arabia, traditionally limited in international tourism due to its conservative policies, has opened up significantly in recent years.
The UAE introduction of tourist visas, cultural reforms, and mega-projects such as the Red Sea Project, AlUla heritage site developments, and entertainment hubs in Riyadh are part of the kingdom’s strategy to welcome 100 million visitors annually by 2030. To facilitate this, Saudi Arabia is offering public-private partnership opportunities, joint venture incentives, and tax holidays for investors in hospitality, transport, and leisure infrastructure.
The UAE, long a tourism leader in the region thanks to cities like Dubai and Abu Dhabi, continues to enhance its appeal with new visa policies for digital nomads, long-term residency schemes for entrepreneurs, and aggressive promotion of ecotourism. The post-pandemic rebound in global travel has further accelerated UAE’s tourism development, with a surge in hotel construction, cultural festivals, and sustainability-themed travel packages. Dubai Expo 2020’s legacy, for example, is being leveraged to create District 2020—a mixed-use hub designed to attract global talent and investment into the tourism-tech sector.
Crucially, both countries are positioning themselves as investment-friendly destinations with global appeal. The UAE recently launched its “Investopia” platform and various golden visa programs that offer residency to investors, while Saudi Arabia is rolling out investor residency schemes and strengthening its regulatory frameworks to ensure ease of doing business. Free zones with 100% foreign ownership, repatriation of profits, and minimal bureaucracy are central to their approach.
These moves are also being supported by improved legal transparency, digital governance platforms, and robust investment protection laws. In an era where ESG compliance, climate risk, and sustainable growth are top investor priorities, both nations are aligning their infrastructure and regulatory frameworks to attract long-term, strategic partnerships.
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