UAE Cabinet approves six-year National Investment Strategy
The UAE cabinet has approved the country's National Investment Strategy for the next six years, aimed at significantly boosting foreign direct investment (FDI).
The plan was unveiled on Monday during a cabinet meeting chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Sheikh Mohammed said the strategy aims to increase annual FDI inflows from AED 112 billion in 2023 to AED 240 billion by 2031.
Additionally, the plan seeks to grow the FDI stock from AED 800 billion to AED 2.2 trillion, with a focus on key sectors such as industry, logistics, finance, renewable energy and IT.
Chaired today's Cabinet meeting at Qasr Al Watan, Abu Dhabi. Approved our National Investment Strategy for the next 6 years, aiming to increase annual FDI inflows from AED 112B in 2023 to AED 240B by 2031, and grow FDI stock from AED 800B to AED 2.2T, focusing on industry,… pic.twitter.com/WVefEiUzeq
— HH Sheikh Mohammed (@HHShkMohd) March 10, 2025
The Cabinet approved a National Policy for Combating Health Risks, designed to establish national response scenarios, enhance preparedness, and develop recovery and control plans for health crises and emergencies.
The Executive Regulations for Organ and Human Tissue Donation and Transplantation was also approved, ensuring better access to life-saving treatments for individuals suffering from conditions that can only be addressed through organ transplants.
The UAE now has more than 13 licensed transplant centres, with a 30 per cent increase in transplant procedures.
The Cabinet also reviewed the UAE's successful strategic partnerships with African nations, which have led to an 87 per cent increase in trade with Sub-Saharan Africa over five years.
Other significant announcements include the launch of the National Green Certificates Programme for sustainable buildings; and the Remote Work System from Outside the Country in the Federal Government, designed to leverage global talent and expertise outside the UAE to execute specialized job tasks and conduct studies relevant to government operations.
The Cabinet approved 28 international agreements, including economic partnerships with Malaysia, New Zealand and Kenya, plus security, logistics and governmental cooperation deals.
The National Digital Economy Strategy was also reviewed as the UAE targets an increase in the digital economy's GDP contribution from 9.7 per cent to 19.4 per cent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hi Dubai
6 hours ago
- Hi Dubai
Common Compliance Mistakes That Could Cost Your Dubai Business
Starting a business in Dubai comes with endless opportunities, but success isn't guaranteed by vision alone; it's secured through compliance. With so many legal layers and regulatory updates, the question is no longer whether you're growing fast enough. It's this: Are you growing correctly? A simple oversight could lead to heavy fines, visa restrictions, or even losing your trade license. In this article, we explore the most common compliance mistakes businesses in Dubai make, how they happen, what the consequences are, and, most importantly, how to avoid them before it's too late. 1. Choosing the Wrong Business License for Your Activities When you set up a business in Dubai, your license must match every activity you plan to carry out. If it doesn't, you're not just bending the rules, you're violating them. What's the issue? Dubai's Department of Economy and Tourism (DET) and Free Zone authorities issue licenses under specific categories like commercial, professional, industrial, or e-trader. If you operate outside the scope of the licensed activity, even by mistake, you're in non-compliance. Penalties and consequences AED 5,000 fine for unauthorized activity Up to AED 50,000 for repeated or severe cases Additional fines for operating during the grace period without renewal Risk of business suspension, visa cancellations, blacklisting, and even forced closure How to stay compliant Regularly review your business activity against your current license Update your license before adding new services or products Renew your license on time to avoid the risk of expiration-related fines Always keep your licensing documents accessible for inspection 2. Setting Up in the Wrong Jurisdiction (Mainland, Free Zone, Offshore) Not all jurisdictions are created equal. Where you register your company on the mainland, in a free zone, or offshore determines your scope of operations, visa abilities, and compliance responsibilities. What's the issue? Each structure has its own rules for labor, visas, and business activities. Choosing the wrong one can block your expansion plans or expose you to legal violations. Penalties and consequences Visa restrictions or inability to sponsor employees Legal violations for employing staff under the wrong labor code Fines or operational limitations for exceeding business activity permissions Blacklisting for operating an offshore company onshore How to stay compliant Match your business model with the right jurisdiction based on your customers and operations Verify visa and labor law rules before hiring Consult legal experts when setting up or expanding your business to ensure proper structure from the beginning Understand office space and visa quota requirements to avoid future disruptions While Economic Substance Regulations (ESR) were once essential, new rules under the the UAE's Corporate Tax regime now govern the compliance landscape. What's the issue? Many businesses are still focused on ESR filings even though the rules have changed. Failing to meet current substance requirements under Corporate Tax could result in tax issues. Penalties and consequences (for older ESR non-compliance) AED 20,000 for missing notification AED 50,000 for incomplete or incorrect reports AED 400,000 for repeated violations Possible license suspension or blacklisting How to stay compliant Ensure all ESR reports were submitted for financial years ending before 2023 Focus on meeting Corporate Tax substance standards through UAE-based staff, office space, and real business control Consult tax professionals to confirm your structure meets updated Ministry of Finance expectations Keep proper documentation ready for audits or tax residency evaluations 4. Mishandling VAT Registration, Invoicing, and Payments VAT compliance is still one of the most misunderstood areas for Dubai businesses, even years after its introduction in 2018. What's the issue? Many businesses delay registration, issue incorrect invoices, or file returns late—all of which attract penalties. Penalties and consequences AED 20,000 for late VAT registration AED 5,000 per incorrect tax invoice AED 10,000 for poor record-keeping (AED 50,000 for repeat offenses) Late payment penalties that grow monthly, up to 300% of the unpaid tax Fines of up to AED 1,000,000 for severe infractions How to stay compliant Register if your taxable revenue exceeds AED 375,000 annually Issue invoices with the correct format, including TRN and VAT breakdown Submit returns within 28 days after each tax period Use voluntary disclosure forms to correct errors over AED 10,000 Maintain records for five years and update your FTA profile when any changes occur 5. Mismanaging Employment and Visa Rules Employment laws differ across mainland and free zones, and failing to follow the right rules can lead to serious trouble. What's the issue? Using the wrong visa sponsorship, skipping standard contracts, or not meeting gratuity calculations can all count as violations. Penalties and consequences AED 20,000 for unauthorized hiring AED 100,000 to AED 1 million for visa violations Fines and lawsuits for incorrect gratuity payments or leave entitlements Criminal charges for fake Emiratisation hiring practices How to stay compliant Use the correct contracts—MoHRE for mainland, zone-specific for free zones Make sure the office size and visa quotas match your hiring plans Avoid deploying free zone visa holders on the mainland without approval Pay salaries on time, calculate benefits accurately, and never withhold passports 6. Neglecting Cybersecurity Obligations and Data Protection Laws In a digitized economy like Dubai, data security is not just a technical requirement, it's a legal necessity under the UAE's Information Assurance Regulation and Cybercrimes Law. What's the issue? Businesses often fail to implement basic security protocols or underestimate the risks of poor online behavior by staff. Penalties and consequences AED 150,000 to AED 3,000,000 in fines for unauthorized access, data tampering, or illegal online behavior Jail terms for serious violations, including slander, hacking, and false information dissemination Deportation risks for non-citizens violating cybersecurity laws Blacklisting and forced shutdown in severe cases How to stay compliant Adopt IA Regulation controls if your company falls under critical infrastructure or government-related sectors Secure your data systems and train employees on responsible online behavior Don't publish false news or use networks to insult, harass, or deceive Report incidents promptly and have a recovery plan in place Ensure marketing and communications are clear, accurate, and legally vetted Customer trust is earned, but it can be lost instantly if your business fails to meet the UAE's consumer protection laws. What's the issue? Misleading ads, poor-quality products, improper invoicing, or misuse of customer data are all considered violations. Penalties and consequences AED 10,000 for not issuing invoices in Arabic AED 50,000 for false advertising AED 100,000 for ignoring warranty and after-sales obligations Up to AED 2,000,000 for supplying unsafe goods Confiscation of products and business closure for repeat offenses How to stay compliant Ensure all goods meet quality and safety standards Issue detailed Arabic invoices and display correct prices Get customer consent before using their data for marketing Set up proper complaint handling systems Register promotional campaigns with the right authority (like DET) 8. Failing to Implement Strong Anti-Money Laundering (AML) Practices Money laundering laws in the UAE apply to more than just banks; they include real estate agents, gold dealers, accounting firms, and more. What's the issue? Skipping basic due diligence or failing to report suspicious activity can put your business on regulators' watchlists. Penalties and consequences AED 100,000 to AED 1 million for failing to report suspicious transactions Up to AED 5 million for poor record-keeping or not appointing a compliance officer License suspension, criminal charges, and asset seizure Personal accountability and fines for managers and owners How to stay compliant Register with goAML and report any suspicious activity immediately Conduct customer due diligence before and during relationships Provide regular AML training for staff and implement internal audits Follow sanctions lists and freeze suspicious accounts as required Encourage internal whistleblowing and act on red flags promptly 9. Ignoring Corporate Governance and Ethical Conduct Standards Strong governance builds business credibility. Weak internal control systems can leave you vulnerable to investigations, fines, or worse. What's the issue? Many companies in Dubai, especially financial entities in DIFC or regulated sectors, underestimate their obligations under local governance frameworks. Penalties and consequences USD 1.3 million in fines imposed on firms and individuals in 2024 for ethics and compliance failures Personal bans on directors or managers involved in misconduct DFSA or Central Bank scrutiny, leading to frequent audits and restrictions Reputational damage that could scare off investors and clients How to stay compliant Set up a proper board structure with independent oversight Create written codes of conduct covering conflicts of interest, bribery, and ethical behavior Implement strong internal audits and compliance monitoring Establish confidential reporting systems and whistleblower protection Deliver regular governance training to leadership and employees 10. Mishandling Import, Export, and Customs Procedures If your business deals with physical goods, even a minor customs mistake could hold up your entire supply chain. What's the issue? Wrong HS codes, under-declared values, expired re-export timelines, or incorrect documentation can all trigger inspections, fines, or shipment holds. Penalties and consequences AED 500 to AED 5,000 per incident for errors in declarations or importing restricted goods 10% of the CIF value fine for failing to re-export Free Zone goods on time Seizure of containers, delays in clearance, or revocation of trade privileges Legal exposure and reputational damage if repeated violations are recorded How to stay compliant Use Dubai Trade and Mirsal 2 for all declarations and updates Declare goods accurately using the correct HS codes and CIF values Maintain valid permits for restricted items and monitor re-export timelines Use the voluntary disclosure system for honest reporting of mistakes Stay informed of updates from Dubai Customs and other regulatory bodies In a fast-paced and highly regulated environment like Dubai, avoiding fines isn't your only goal. True compliance protects your company, builds trust with clients and authorities, and sets you apart as a reliable player in your industry. If you think of compliance as a checklist, you'll constantly be playing catch-up. But if you embed it into your strategy—structuring your licenses right, training your team, maintaining good governance, and staying updated with legal shifts—it becomes a competitive advantage. It shows that you're not just doing business in Dubai. You're doing it right. Also read: UAE Updates VAT Rules with New Exemptions and Simplified Procedures The UAE Cabinet has approved Decision No. 100 of 2024, amending certain provisions of the Executive Regulations of Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT), as announced by the Ministry of Finance. Corporate Tax for Enterprises in the UAE: Recent Changes to CT Rules We tell you everything you need to know about the UAE corporate tax and how it applies to enterprises in Dubai and the UAE. Export Opportunities: Using Dubai as a Global Trade Hub Dive into why Dubai stands out as a trade hub, which sectors hold the most promise and how local businesses can seize these opportunities to thrive on the world stage. Global Energy Investment to Reach $3.3 Trillion in 2025 as Clean Technologies Surge, says IEA Global energy investment is projected to hit a record US$3.3 trillion in 2025, with clean energy technologies attracting more than double the capital flowing into fossil fuels, according to a new report from the International Energy Agency (IEA).
Sharjah 24
8 hours ago
- Sharjah 24
UAE President receives Qatari Prime Minister
During the meeting, which took place at Qasr Al Bahr in Abu Dhabi, the two sides exchanged Eid Al-Adha greetings, praying to God to bless both countries and their peoples with continued wellbeing and prosperity. His Excellency conveyed to the UAE President the greetings of His Highness Sheikh Tamim bin Hamad Al Thani, Emir of the State of Qatar, along with his best wishes for the continued progress and prosperity of the UAE. His Highness Sheikh Mohamed bin Zayed asked His Excellency to convey his own greetings to the Emir, expressing his sincere wishes for ongoing development for Qatar and its people. His Highness and the Qatari Prime Minister discussed the close relations between the two countries and various aspects of their cooperation. They affirmed their shared commitment to strengthening collaboration for the benefit of both nations. The two sides also reviewed a number of regional and international issues of common concern and exchanged views on recent developments. Earlier in the day, His Excellency Sheikh Mohammed bin Abdulrahman Al Thani arrived at Al Bateen Airport in Abu Dhabi, where he was received by His Highness Sheikh Tahnoun bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Adviser, along with a number of officials. The meeting at Qasr Al Bahr was attended by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi; His Highness Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Adviser; His Highness Sheikh Hamdan bin Zayed Al Nahyan, Ruler's Representative in Al Dhafra Region; His Highness Sheikh Saif bin Mohammed Al Nahyan; His Highness Sheikh Nahyan bin Zayed Al Nahyan, Chairman of the Board of Trustees of the Zayed Charitable and Humanitarian Foundation; His Highness Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior; His Highness Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Special Affairs; Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Tolerance and Coexistence; Sheikh Mohammed bin Hamad bin Tahnoun Al Nahyan, Adviser to the UAE Presidential; along with a number of ministers and senior officials.
Gulf Today
8 hours ago
- Gulf Today
Rulers greet Jordan King on Accession to Throne Day
President His Highness Sheikh Mohamed Bin Zayed Al Nahyan has sent a congratulatory message to King Abdullah II Bin Al Hussein of the Hashemite Kingdom of Jordan on the occasion of the Accession to the Throne Day. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, and His Highness Sheikh Mansour Bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, also dispatched similar messages to King Abdullah II on the occasion. Their Highnesses Supreme Council Members and Rulers of the Emirates have sent separate congratulatory messages to King Abdullah on the occasion of the Accession to the Throne Day. The messages were sent by Their Highnesses Dr Sheikh Sultan Bin Mohammad Al Qasimi of Sharjah; Sheikh Humaid Bin Rashid Al Nuaimi of Ajman; Sheikh Hamad Bin Mohammed Al Sharqi of Fujairah; Sheikh Saud Bin Rashid Al Mu'alla of Umm Al Qaiwain; and Sheikh Saud Bin Saqr Al Qasimi of Ras Al Khaimah. Their Crown Princes and Deputy Rulers sent similar messages congratulating the King of Jordan. In a separate development, King Abdullah II of Jordan, during a meeting with Iraq President Abdul Latif Rashid on Sunday, discussed stepping up efforts to end the war on Gaza, ensuring the uninterrupted flow of humanitarian aid, and ending the dangerous escalations in the West Bank. The meeting, held in Nice, France on the sidelines of the third United Nations Ocean Conference that kicks off on Monday, covered ways to enhance bilateral cooperation across various sectors. King Abdullah II also stressed the importance of building on the outcomes of the recent Arab Summit held in Baghdad. Also during the day, King Abdullah II, during a meeting with France President Emmanuel Macron, stressed Jordan's readiness to strengthen ties with France across various sectors, which will contribute to enhancing stability in the Middle East. WAM
