The Ministry of Economy is driving forward the UAE’s economic development and instituting modern new policies which are dedicated to building up a diversified and competitive knowledge-based economy with investment appeal. H.E. Mohammed Ahmed Bin Abdul Aziz Al Shihhi, Undersecretary of the Ministry of Economy, explains that attracting FDI is one of the ministry’s main goals. He says, “We want to increase FDI flows to the UAE and fully capture the benefits of FDI by increasing the competitiveness of priority sectors. We will do this through promoting high-quality production sectors with added value, enhancing access to technology and managerial know-how, supporting R&D and training activities, and encouraging the employment of locals as well as environmental protection.”
One of the ministry’s recent accomplishments is the endorsement by the Cabinet of a widely-anticipated draft ‘Companies Law’ that is expected to be more favourable to investors by allowing 100% foreign ownership in specific sectors of the economy in line with the federal government’s economic diversification strategy. The Undersecretary adds, “We are also now in the home stretch of completing a comprehensive, investor-friendly new law on foreign investment.”
Attracting knowledge-based industries
The Ministry of Economy aims for the industrial sector to account for 25% of the UAE’s GDP five years from now compared to the current 10%. The Undersecretary explains, “We want to focus on the promotion of knowledge-based industries.”
The ministry is also promoting trade with the EU. The Undersecretary says, “We want to see the free-trade agreement between the EU and the GCC countries finalised. Meanwhile we have launched many projects with individual EU countries, particularly Germany, Italy and the UK.” The Undersecretary adds, “For a company looking for a base to serve markets in the Middle East, North Africa, the CIS countries and South Asia – a combined market of €2 billion – the UAE is the perfect place.”
Ambitious regulatory reforms
The Undersecretary explains that over the last five years, the ministry has reviewed the UAE’s entire legal framework regarding economic activities, defined strategies and goals, and drafted new laws, all with the participation of the private sector whose input in the process the ministry actively encourages.
This comprehensive new framework is designed to ensure a high-quality regulatory environment which will promote efficiency, transparency and investor confidence. The Undersecretary says, “Once enacted and implemented, this framework will align the business environment with the UAE 2021 strategic vision. Such a participation-based approach underlines the ministry’s commitment to a public-private dialogue on reforming business practices.”
