UAE intensifies investment drive in financial services, pharmaceuticals, and technology

ABU DHABI, UNITED ARAB EMIRATES: At the Investopia conference held in Abu Dhabi, Minister of Investment Mohamed Alsuwaidi announced that the UAE is intensifying its initiatives to attract investments across various sectors, including financial services, pharmaceuticals, technology, and manufacturing. He pointed out that the business setup processes are being simplified to facilitate this goal.

Alsuwaidi highlighting the considerable growth potential within the financial services sector, specifically in areas such as asset management, insurance, banking, and FinTech said: “We are still far behind where we would like to be,” pointing out the ample opportunities available for expansion in these domains.

In addition, pharmaceuticals and biosciences have been identified as key priorities, with an emphasis on drug discovery, the development of medical devices, and genome sequencing. The UAE is committed to investing in research and development to foster innovation in these areas.

As part of its broader economic diversification strategy, the UAE has set an ambitious target to double its foreign direct investment (FDI) to $354 billion by 2031. In 2023, the nation attracted $30.68 billion in FDI, reflecting a significant 35 percent increase from the previous year, and it ranked as the second-largest global market for Greenfield investment, following the United States, according to the UN Conference on Trade and Development’s findings.

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Furthermore, sectors such as manufacturing, artificial intelligence, and renewable energy are presenting expanding opportunities. Developments in robotics and AI technologies are anticipated to be at the forefront of this growth.

Alsuwaidi also pointed out that substantial legal reforms are in progress to improve the overall business climate, including enhancements to the commercial companies’ law. Since 2020, the UAE has permitted full foreign ownership of onshore enterprises, which has significantly bolstered investor confidence.

Additionally, there are ongoing efforts to enhance data transparency for investors. “Providing consistent and updated market data is crucial,” Alsuwaidi added, indicating that the government is collaborating with key ministries to ensure better access to economic information for potential investors.