In a strategic cabinet session chaired by HH Sheikh Mohammed bin Rashid Al Maktoum at the Dubai Airshow, the UAE activates a massive financial engine to secure its status as the world’s investment capital by 2031.
The UAE has officially moved from “open for business” to “active investment partner.”
In a landmark Cabinet meeting held today at the Dubai Airshow, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the establishment of the National Investment Fund.
With an initial capital deployment of AED 36.7 billion, the Fund is not just a financial vehicle; it is a sovereign declaration of intent. Its mandate is precise and aggressive: to catalyze Foreign Direct Investment (FDI) inflows and propel the nation’s total investment stock to a staggering AED 2.2 trillion by 2031.
“The World’s Best Environment for Investment”
Speaking from the Cabinet session, HH Sheikh Mohammed delivered a direct message to the global capital markets:
“Our message to global investors is clear. The UAE welcomes you. The UAE will provide the world’s best environment for investment. The UAE will continue to support your growth and long-term success.”
The National Investment Fund is designed to operationalize this promise. It will provide specialized “financial incentive packages” to attract major global players, targeting companies capable of delivering high economic impact.
The AED 2.2 Trillion Roadmap
The Fund serves as the engine for the National Investment Strategy 2031, which has set two critical KPIs that will define the next decade of the UAE economy:
- Double Annual FDI: Increasing annual inflows from AED 115 billion to AED 240 billion.
- Cumulative Growth: Raising the total stock of foreign investment in the country from AED 800 billion to AED 2.2 trillion.
Beyond Capital: Industry & Identity
While the Investment Fund dominated the headlines, the Cabinet reviewed a broader scorecard of national progress, signaling a holistic approach to nation-building:
- Industrial Powerhouse: The National Strategy for Industry (Operation 300bn) is delivering results ahead of schedule. The industrial sector now contributes AED 210 billion to the GDP, with industrial exports hitting AED 197 billion. The target remains set at AED 300 billion by 2031.
- Aviation Dominance: The civil aviation sector contributed AED 340 billion (18.2% of GDP) in 2024, handling 148 million passengers, a 10% increase year-on-year.
- Social Fabric: The Cabinet also approved the UAE National Identity Strategy (70 initiatives) and the National Family Growth Agenda 2031, reinforcing that economic acceleration will not come at the cost of cultural heritage or social cohesion.
The establishment of the National Investment Fund marks a structural shift in the UAE’s economic operating model. By putting AED 36.7 billion on the table to co-invest and incentivize global players, the government is effectively de-risking market entry for the world’s most innovative companies.
For Family Offices and Institutional Investors, this is the ultimate buy signal: The state is no longer just a regulator; it is now the lead investor in its own future.
