Latest news with #ArabianBusiness
Arabian Business
19 hours ago
- Business
- Arabian Business
Eid Al Adha 2025 dates announced; UAE petrol prices change; new tax rule revealed; Dubai real estate tokenisation – 10 things you missed this week
The UAE has announced Eid Al Adha holiday dates for the public and private sectors next week. The long-awaited announcement came during a week which also saw updated tax rules, the imminent change of petrol prices, a Dubai real estate tokenisation project and more. Catch up on 10 of the biggest news stories this week, as selected by Arabian Business editors. UAE announces Eid Al Adha 2025 holidays The UAE has announced Eid Al Adha 2025 holidays for the public and private sectors. The holidays will begin on 09 Dhu Al-Hijjah 1446 AH, corresponding to Thursday, June 05, 2025, and will continue until 12 Dhu Al-Hijjah 1446 AH, corresponding to Sunday, June 08, 2025. Official work will resume on Monday, June 09, 2025. UAE petrol prices to change for June 2025 The UAE is set to announce petrol prices for June 2025 this week. Petrol prices increased fractionally in May, following two months of increases, although prices for motorists filling up on Super 98, Special 95, E-Plus 91 and diesel have remained stable. It is currently significantly cheaper to fill up a tank than year ago, with all categories becoming more affordable, despite prices fluctuating throughout the past 12 months. The UAE Ministry of Finance has issued a Cabinet Decision introducing a new tax treatment option for unincorporated partnerships. The move is part of the government's ongoing efforts to enhance tax transparency and improve the business environment. Under the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, unincorporated partnerships are generally regarded as tax transparent entities. New Dubai road to cut journey times from 20 minutes to just 3.5 A new road in Dubai will slash journey times in one neighbourhood from 20 minutes to less than four. The Roads and Transport Authority (RTA) is set to open a new entry and exit point to Al Warqa directly from Sheikh Mohammed Bin Zayed Road early June 2025, aiming to facilitate smoother access to and from the neighbourhood. Once complete, the project will increase road capacity by 5,000 vehicles per hour, reduce travel time by 80 per cent—from 20 minutes to just 3.5 minutes—and cut trip distances from 5.7km to 1.5km. The initiative is being implemented in collaboration with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the United Arab Emirates (CBUAE), and the Dubai Future Foundation (DFF) as part of the Real Estate Sandbox. Zand Digital Bank has been appointed as the banking partner for the pilot phase. Binghatti Holding Ltd has acquired freehold land spanning over 8 million square feet of gross floor area for its first large-scale master-planned residential community in Dubai. The Dubai-based real estate developer, known for luxury-branded residences, expects the development to have a total value exceeding AED 25 billion. The land sits in Nad Al Sheba 1 within Dubai's Meydan district. The area previously housed the Nad Al Sheba Racecourse, which served as the former venue for the Dubai World Cup. The location maintains connections to major roads and sits near Dubai's key landmarks. Disneyland Abu Dhabi triggers real estate shift: Price moves, investor interest and new hotspots identified Disney recently announced a theme park in Yas Island, Abu Dhabi, marking its seventh destination globally. According to real estate experts, the announcement is already positively impacting the capital's property market. While the project is years from completion, early signs point to growing investor interest, increased inquiries for off-plan units, and early price adjustment discussions. 'Even for an established, world-class tourism and leisure hub, Yas Island's recent announcement of Disneyland Abu Dhabi is a major touristic coup, and yet another reason why Yas is one of Abu Dhabi's most dynamic residential investment destinations. The news has put Yas firmly in the spotlight and immediately boosted investor confidence in this world-class destination,' Riyad Magdy, Chairman and Founder, Oia Properties, said in an exclusive interview with Arabian Business. EXCLUSIVE: Dubai real estate giant Sobha Realty eyes 3 Texas cities for major U.S. expansion Dubai-headquartered luxury property developer Sobha Realty has revealed more of its plans to expand into the United States market, with Texas cities forming the 'cornerstone' of its international growth strategy. The company, which has operated in the UAE since 2013, will focus on Dallas, Houston, and Austin for its U.S. debut. In an exclusive interview with Arabian Business, Ravi Menon — Chairman of Sobha Group — cited the cities' rapid population growth, strong economic fundamentals, and demand for luxury residential developments as key factors in the decision. UAE malls in 'non-prime' areas could face pressure from Chinese goods diversion amid U.S. tariffs The new U.S. tariffs imposed by Donald Trump could create 'ripple effects' throughout global supply chains that could eventually reach the UAE market, according to PP Varghese, Head of Professional Services at Cushman & Wakefield Core. 'While the UAE doesn't heavily import directly from the US, many products pass through complex international supply chains where tariff-related price increases get passed down,' he told Arabian Business. UAE takes legal action against 30 domestic worker recruitment rulebreakers The UAE is penalising domestic worker recruitment offices over rule breaking and violations of guidelines. The Ministry of Human Resources and Emiratisation (MoHRE) has taken legal action against 30 domestic worker recruitment offices across the UAE after confirming their involvement in 89 violations flagged during the first three months of 2025. The measures form part of the Ministry's ongoing efforts to implement its integrated field and digital monitoring system, which aims to identify and address any violations by domestic worker recruitment offices and ensure their compliance with relevant legislation.
Gulf Insider
6 days ago
- Business
- Gulf Insider
UAE to Introduce Mandatory AI Subject in Schools From 2025: What Does This Mean for Teachers
Teachers in the UAE could face challenges explaining artificial intelligence (AI) to kindergarteners if they are not equipped with the right tools and training, education experts warn, as the nation prepares to introduce AI as a mandatory subject from the 2025–2026 academic year. 'Yes, and that's why it's crucial we support teachers with the right tools and training,' Alistair Jarvis CBE, Pro Vice-Chancellor at the University of London in Dubai told Arabian Business. 'Explaining AI to very young learners requires age-appropriate language and resources, as well as confidence in how to relate these concepts meaningfully to the classroom and to everyday life,' Jarvis added. Earlier this month, the UAE announced artificial intelligence will become a mandatory subject across all public schools, positioning the nation among the first countries to integrate AI into its national curriculum from kindergarten to Grade 12. Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, said the move will prepare 'children for a time unlike ours, with conditions different from ours.' 'As part of the UAE's long-term plans to prepare future generations for a different future, a new world, and advanced skills, the UAE government today approved the final curriculum to introduce 'Artificial Intelligence' as a subject across all stages of government education in the UAE, from kindergarten to grade 12, starting from the next academic year,' Sheikh Mohammed said on X. 'Our goal is to teach our children a deep understanding of AI from a technical perspective, while also fostering their awareness of the ethics of this new technology, enhancing their understanding of its data, algorithms, applications, risks, and its connection to society and life,' Sheikh Mohammed added. The UAE's AI curriculum will focus on seven key areas: foundational concepts, data and algorithms, software use, ethical awareness, real-world applications, innovation and project design, and policies and community engagement. The curriculum offers tailored units for each age group. In kindergarten, children engage in visual and interactive activities to discover AI and digital technologies through stories and play. Cycle 1 students compare machines to humans, develop digital thinking skills, and explore AI applications. Cycle 2 students design and evaluate AI systems, learn about bias and algorithms, and focus on ethical AI use. Cycle 3 prepares students for higher education and careers by teaching command engineering and simulating real-world scenarios. The new curriculum will be integrated within existing school schedules without requiring additional teaching hours. It will be taught by designated teachers as part of the Computing, Creative Design, and Innovation subject. The Ministry of Education will provide guides, including activities, models, and lesson plans adaptable to various classroom settings. What UAE educators need for AI education success Education leaders acknowledge the initiative presents both opportunities and challenges, particularly in preparing teachers and ensuring age-appropriate delivery. 'Teachers need structured training on the effective and ethical use of AI; understanding its capabilities, limitations, and how to integrate it meaningfully into learning, rather than defaulting to its use. Ensuring they are comfortable with AI is key to helping students use it as a positive learning tool,' Jarvis said, further highlighting concerns about over-reliance among young learners. 'One concern is over-reliance; children may trust AI outputs without question. There's also the issue of misinformation or unverified content. That said, if introduced early and thoughtfully, AI can become a natural part of the learning process, with students learning to engage critically with it from the outset,' he added. Echoing the sentiment, Kathryn Booth, Director of the School of Qualifications at Pearson MENA, noted the developmental considerations for younger students. 'At this developmental stage, children often attribute human-like qualities to AI technologies such as smart assistants or chatbots. This can lead to a heightened trust in what machines say, even over their teachers,' Booth said. However, she viewed this as an opportunity. 'This natural curiosity presents an ideal opportunity for educators to begin fostering digital literacy. Rather than shielding young learners from AI, teachers can introduce them to age-appropriate concepts, encouraging them to explore how these tools work and what makes them tick.' Professional development requirements for UAE AI teaching programme Booth further stressed the need for comprehensive professional development. 'For teachers to deliver AI education effectively, comprehensive professional development is key. They need more than just technical knowledge—they require a deep understanding of pedagogy, ethical frameworks, and real-world applications of AI to confidently guide students across all age groups.' She outlined specific training requirements, which should include 'hands-on exposure to AI tools, instructional resources tailored by grade level, and clear guidelines on responsible use. Ongoing support is just as important, whether through digital platforms, peer collaboration, or partnerships with edtech leaders.' In addition, Rami Abu Arja, Senior Innovation Marketing Manager at Yasmina, emphasised the importance of cross-disciplinary integration. 'UNESCO's AI and Education: Guidance for Policy-Makers highlights that successful AI programs like those in China and Finland treat AI not as a standalone subject, but as a cross-disciplinary tool integrated into science, math, the arts, and more,' Abu Arja said. 'Additionally, topics like data privacy, fairness, and responsible use need to be part of the conversation from the start. Crucially, the study underscores that teacher training is a make-or-break factor; without it, even well-designed initiatives often fall short. To truly prepare a future-ready generation, students must learn to work with AI, not just learn about it,' he added. UAE AI skills prepare students for $46 billion market by 2030 The initiative aims to prepare students for a job market where AI literacy is increasingly essential. 'Early exposure to AI can significantly help UAE students secure better job opportunities in the future,' Abu Arja explained, adding that as AI continues to be adopted across industries such as healthcare, finance, and logistics, students who develop AI skills early on will be better prepared for the demands of a digital-first job market. 'According to Microsoft and LinkedIn's 2024 Work Trend Index, 66 per cent of business leaders say they would not hire someone without AI skills,' Booth said. 'Pearson's research shows that generative AI can save workers 78 million hours per week on routine tasks, highlighting just how deeply integrated these tools are becoming in everyday roles,' she added. Moreover, the economic implications extend beyond individual career prospects. 'Considering that the country's AI market is expected to reach $46.33 billion by 2030, by embedding AI into the national curriculum, the UAE is equipping its youth with the tools to thrive in a knowledge-based economy. This initiative isn't just about staying relevant—it's about empowering students to create, innovate, and lead in an increasingly digital world,' Booth said. How UAE AI education compares to Singapore, South Korea and China The UAE's initiative places it among countries already incorporating AI education. 'Several leading education systems are already incorporating AI, including Singapore, South Korea, and China. The UAE is positioning itself among global leaders in recognising AI's importance early on,' Jarvis said. 'In the United States, nearly nine in ten educators support teaching AI in a developmentally appropriate way before high school graduation. Countries across Europe and Asia are also developing AI curricula, often emphasising ethics, critical thinking, and real-world application,' Booth added, further explaining that the UAE has a 'proactive' approach because of its 'bold, integrated approach across all grade levels, starting from kindergarten. This proactive strategy aligns with its long-term visions, such as the UAE Centennial 2071 and its commitment to becoming a global hub for innovation.' Data protection and equal access among key challenges in AI school implementation Nevertheless, these UAE experts have also identified several challenges requiring attention. 'While these challenges are real, they are not insurmountable. With thoughtful implementation, the right tools, and clear ethical frameworks, we can ensure that AI in classrooms empowers learners and enhances their education in meaningful ways,' Booth said. She also emphasised the importance of equal access, noting that successful AI education implementation requires careful planning and resource allocation to address disparities in home technology access, making school-based provision of AI tools essential. In addition, 'parents may have concerns around things like increased screen time, which schools will need to address openly and responsibly,' Abu Arja added. There is a need for ethical AI education All experts emphasised the importance of ethical AI education, with Jarvis advocating for early ethical discussions. 'We must show students that AI is a tool to enhance – not replace – thinking. Teaching them how and when to use AI effectively builds digital literacy and encourages critical analysis. Conversations around ethics, fairness, data privacy, and bias in AI systems should start young, helping children become informed and responsible users,' he said. Another way to boost ethical AI education is through the use and support of interactive learning methods, according to Abu Arja. 'Real-world examples showing how AI can solve meaningful problems, while also highlighting its risks, encourage thoughtful use from an early age. Interactive learning methods can make these lessons more engaging and effective,' he said. 'For instance, a case study from Sweden showed that role-playing games focused on AI fairness led to deeper student engagement than traditional lectures. Activities like these allow children to experience responsible AI in action. Sharing stories of individuals using AI ethically and for good can further inspire students, helping them see how they, too, can make a positive impact with the tools they're learning to use,' he added. Moreover, the UAE's AI initiative will influence broader regional educational shifts 'The UAE's move to integrate AI into education has the potential to inspire broader changes across the region. As a recognised leader in technological innovation, the UAE often sets the pace for others in the Middle East, and its success could encourage neighboring countries to explore similar approaches,' Abu Arja said. Booth projected wider economic implications, suggesting that the potential $320 billion contribution AI could make to the regional economy by 2030 will likely prompt other education systems in the region to follow suit, particularly those seeking economic diversification and high-skill talent development. The UAE has partnered with Presight (a G42 company), AI71, Mohamed bin Zayed University of Artificial Intelligence, and Emirates College for Advanced Education to accelerate technology adoption in education, supporting the country's vision to invest in people and create a future-ready education system driving sustainable national development. 'The UAE's initiative is more than a curriculum change—it's a generational investment in human capital. By embedding AI across the school system, the country is building the foundations for a future-ready workforce,' Booth concluded.
Arabian Business
23-05-2025
- Business
- Arabian Business
UAE announces tax exemption; Expected holiday dates; Dubai real estate cryptocurrency buying tips; visa application centre opened – 10 things you missed this week
The UAE has revealed new tax guidelines, industrial investment plans and visa and transport projects this week. At the same time real estate analysts have focussed on cryptocurrency and proptech developments in Dubai, with major announcements and buying tips hitting the headlines. Catch up on 10 of the biggest stories this week, as selected by Arabian Business editors. UAE announces tax exemption The UAE has announced an exemption on Corporate Tax for certain foreign entities. The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (55) of 2025 on Exempting Certain Persons from Corporate Tax for the purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. The decision expands the scope of the corporate tax exemption to include foreign entities that are wholly owned by certain exempted entities, such as government entities, government-controlled entities, qualifying investment funds, and public pension or social security funds. Dubai to slash journey times on major road with new bridge The new bridge will serve residential communities in Nad Al Sheba and provide direct connection for inbound traffic from Dubai–Al Ain Road towards Al Ain. With a design capacity of 2,600 vehicles per hour, the bridge reduces travel time from Dubai–Al Ain Road to Nad Al Sheba by 83 per cent, cutting the journey from six minutes to just one. UAE holidays 2025: Will residents get a long weekend ahead of Islamic New Year? If confirmed by UAE authorities, the public holiday would align with the country's Saturday–Sunday weekend, potentially offering a three-day break from June 27 to 29. As with all Hijri calendar-based holidays, the official date depends on the moon sighting and will be confirmed closer to the time. Dubai launches $1.2bn PropTech Hub to power future real estate Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, Chairman of The Executive Council of Dubai, and Chairman of the Higher Committee for Future Technology and Digital Economy, chaired a meeting of the Committee and issued directives to launch The Dubai PropTech Hub. The move seeks to fast-track the expansion of the PropTech market in the emirate, aiming to more than double its value to surpass AED4.5bn ($1.2bn) over the next five years. Abu Dhabi announces car manufacturing plans as it eyes $27bn automotive plan and 7,000 skilled jobs The Abu Dhabi Investment Office (ADIO) announced the launch of a major economic programme targeting the establishment of an end-to-end automotive ecosystem. Backed by multi-billion-dirham investments from global industry leaders, the programme aims to transform Abu Dhabi into the region's foremost hub for smart automotive manufacturing and assembly, R&D, restoration, auctions and luxury automobiles. Announced during the Make it in the Emirates Forum 2025 (MIITE), the automotive programme is projected to contribute AED100bn ($27.2bn) to Abu Dhabi's GDP by 2045, attract more than AED8bn ($2.2bn) in FDI and create 7,000 high-skilled jobs. Umm Al Quwain an 'investment hotspot' in UAE, say real estate experts The northern emirate, known for its 23 km of coastline and natural landscapes, is experiencing increased investor interest as neighbouring property markets reach maturity and price points that exclude many buyers. In an exclusive interview with Arabian Business, Andrew Cummings, Head of Residential Agency at Savills Middle East, attributes the growth to a broader trend of investment focus shifting to the northern emirates. Off-plan real estate sales in Dubai have already reached $24.5bn this year as high returns and easy finance lure investors Off-plan Dubai real estate sales have already reached AED90bn ($24.5bn) so far this year, according to W Capital data. The findings, based on data from the Dubai Land Department, indicated that the Dubai real estate market witnessed 40,500 off-plan property transactions between January and May 15, 2025. The AED90bn ($24.5bn) total, making 38 per cent of total market sales. Ready-built properties, which recorded AED147.4bn ($40.1bn), accounted for 62 per cent of sales during the same period. According to the data, off-plan transactions included 36,359 residential units and 4,141 buildings. World's largest visa application opens in Dubai with 10,000-per-day capacity The world's largest visa application facility has opened in Dubai and is capable of handling 10,000 visa applications a day. VFS Global launched its flagship Visa Application Centre in Wafi City, marking the opening of the largest visa application facility in the world. At nearly 150,000sq ft, the centre is equipped to handle up to 10,000 visa applications daily, a capacity that stands as the highest for any single location, and is supported by a skilled and diverse team of over 400 trained professionals from more than 25 nationalities. The pros and cons of buying Dubai real estate with cryptocurrency With the UAE's proactive approach to blockchain and digital asset regulation, Dubai is now one of the few cities in the world where cryptocurrency can be used to legally and securely purchase residential and commercial real estate. As more developers and buyers embrace crypto payments, the conversation is shifting from 'Is this possible?' to 'What are the risks and rewards?' – whether you're a seasoned crypto investor or a newcomer to Dubai's property market. Emirates NBD gets RBI go-ahead to set up wholly owned subsidiary in India Setting up a wholly owned unit will allow Emirates NBD to be treated on par with local banks. A statement by the RBI on Monday said: 'Emirates NBD Bank is currently carrying on banking business in India in branch mode through its branches located in Chennai, Gurugram and Mumbai. The in-principle approval has been granted to the bank for setting up a WOS through the conversion of its existing branches in India. The RBI would consider granting a licence for commencement of banking business in WOS mode under Section 22 (1) of the Banking Regulation Act, 1949 to Emirates NBD Bank PJSC, on being satisfied that the bank has complied with the requisite conditions laid down by the RBI.'
Arabian Business
22-05-2025
- Business
- Arabian Business
Umm Al Quwain an ‘investment hotspot' in UAE, say real estate experts
Umm Al Quwain is positioning itself as the UAE's next property hotspot, with major developers launching large-scale projects in partnership with the emirate's government. The northern emirate, known for its 23 km of coastline and natural landscapes, is experiencing increased investor interest as neighbouring property markets reach maturity and price points that exclude many buyers. In an exclusive interview with Arabian Business, Andrew Cummings, Head of Residential Agency at Savills Middle East, attributes the growth to a broader trend of investment focus shifting to the northern emirates. Umm Al Quwain's rising market potential 'The renewed focus on northern emirates as investment hotspots is playing a key role, particularly with the rise of Ras Al Khaimah following the Wynn announcement. Umm Al Quwain is emerging as a natural alternative, offering early-stage opportunities in a market still in its growth phase,' Cummings explained. Major masterplan developments, specifically Sobha Siniya Island and Downtown UAQ | Sobha Realty in Umm Al Quwain, have become the primary investment catalysts in the emirate. These flagship projects, delivered through strategic partnerships between the government and established developers like Sobha Realty, are transforming the landscape and driving market growth. 'With its serene natural landscape and rich cultural heritage, Umm Al Quwain is now entering a new phase, led by a bold and ambitious vision for sustainable growth and urban development,' Francis Alfred, Managing Director at Sobha Realty told Arabian Business. Alfred further explained that the company's expansion into Umm Al Quwain aligns with their long-term vision to extend luxury living options across the UAE. The developer's recently announced Downtown UAQ | Sobha Realty, is a 25 million sq. ft. coastal 'city within a city' masterplan featuring 11 km of shoreline, with 7 km dedicated to beaches and beach parks. According to Alfred, the development will be divided into three districts covering entertainment, residential and commercial purposes, with over 50 per cent allocated to green and open spaces. The project focuses on apartment buildings with 1 & 2-bedroom apartments and 3-bedroom duplex options, starting from AED 1.11 million. High-yield investment potential For investors and first-time buyers, the emirate offers an opportunity to enter the market at prices significantly lower than Dubai or Sharjah. 'Downtown UAQ | Sobha Realty offers an exceptional entry point for first-time buyers, allowing them to invest in a flagship master-planned community during its formative phase,' Alfred explained. He added that investors can expect annual rental yields in the range of 7-9 per cent, making it 'a compelling opportunity for both passive income and asset growth.' This assessment aligns with Cummings' view, who noted that 'gross yields of 6-8 per cent are achievable, particularly in the villa segment. With capital values still on the rise, there is upside potential for investors entering at this stage' in the emirate overall. The property market in Umm Al Quwain has shown 'consistent upward momentum since 2020,' according to Alfred, reflecting infrastructure development and the emirate's growing profile. Waterfront villas and off-plan residential units in new masterplans are performing well, with buyers seeking lifestyle-led communities that offer potential for long-term capital appreciation. The buyer demographic spans regional investors, mid-income end users, and those priced out of neighbouring markets. Cummings also noted a 'growing base of buyers who are seeing this as a second-home market with strong future upside.' Government involvement has been crucial to this development trajectory. 'The government has played a clear role by enabling large-scale partnerships with trusted developers and prioritising long-term infrastructure planning,' Cummings explained. Sobha Realty's Alfred further highlighted their partnership with the Government of Umm Al Quwain as reflecting 'a shared vision to create a future-proof destination that balances economic growth with environmental preservation.' The Downtown UAQ | Sobha Realty project includes major road, utility, and coastal infrastructure improvements, with provisions for commercial zones and free trade operations. While the growth outlook appears positive, challenges remain. Cummings identified awareness and infrastructure delivery timelines as potential obstacles. 'As with any emerging market, consistent execution will be key to sustaining momentum and building long-term buyer confidence,' he stated. Alfred pointed to Sobha Realty's 'Backward Integration' business model as key to maintaining quality while keeping prices accessible. 'Unlike traditional development business models that rely on multiple external contractors, vendors, and service providers, we maintain complete in-house control over every aspect of the development process, from design to engineering, manufacturing, and construction,' he explained. This approach, he added, protects projects from global supply chain volatility and price fluctuations by sourcing raw materials locally through their own manufacturing units. Sobha Realty, Deyaar projects lure investors to Umm Al Quwain real estate market Looking ahead, Sobha Realty anticipates sustained demand for their masterplans in Umm Al Quwain. Over the next five years, they plan to begin handing over both their masterplan developments in the emirate. Beyond Sobha's projects, other developments gaining traction include Deyaar's AYA Beachfront Residences and the UAQ Creek Waterfront, which are attracting lifestyle-driven buyers. For investors considering the market, Cummings advised watching the phased rollout of Downtown UAQ | Sobha Realty, particularly as commercial and hospitality elements become available. Sobha Siniya Island's luxury residential offering is also expected to drive interest in the medium term. 'Umm Al Quwain offers a combination of value, scale, and long-term vision. For investors, it represents an opportunity to get in early in a market that is just beginning to define itself,' he concluded.
Arabian Business
12-05-2025
- Business
- Arabian Business
UAE investments in Uzbekistan surge to $1.3bn in 2024, Minister Kudratov says
Investments from the United Arab Emirates into Uzbekistan have reached $1.3 billion in 2024 alone, with more than half flowing into the Central Asian nation's burgeoning energy sector, Uzbekistan's Minister of Investment, Industry, and Trade, Laziz Kudratov told Arabian Business in an exclusive interview. The investment surge underscores growing economic ties between the two countries as Uzbekistan positions itself as an emerging investment destination following sweeping economic reforms in recent years. 'In 2024 alone, the volume of investments originating from the UAE reached an impressive $1.3 billion, underscoring the strong confidence Emirati investors place in Uzbekistan's economic policy and long-term growth potential,' Kudratov said. Energy investments alone accounted for over $700 million — a clear signal of the UAE's strategic push into Central Asia's renewable energy market. The number of UAE-funded enterprises operating in Uzbekistan has grown to 337, including 114 joint ventures and 223 foreign enterprises, more than double the 150 companies reported in early 2021. This rapid expansion follows a broader trend of increasing economic cooperation between the two nations. Non-oil trade between the UAE and Uzbekistan grew 104 per cent to $993 million in 2022 compared to $487 million the previous year, with UAE re-exports to Uzbekistan surging 102 per cent to nearly $720 million. 'The energy sector attracted the lion's share of these funds — over $700 million — reflecting the UAE's global expertise in sustainable energy and large-scale infrastructure development,' Kudratov said. Masdar, Abu Dhabi's renewable energy company, has been a key player in Uzbekistan's green transition, developing what the minister described as Central Asia's largest wind farm and three utility-scale solar power plants across the country. The investments align with Uzbekistan's ambitious renewable energy targets, which aim to generate 54 per cent of the country's electricity from renewable sources by 2030. 'Uzbekistan is fully committed to shifting towards renewable energy sources. With our solar potential, we are actively developing solar and wind energy projects, making this a prime sector for investment,' the minister added. Strategic partnership formalised with $200mn fund The investment momentum has been further institutionalised through the January 2025 elevation of bilateral relations to a strategic level during President Shavkat Mirziyoyev's official visit to the UAE. A key outcome was the establishment of the Uzbekistan-Emirates Investment Company, with an investment portfolio currently valued at $200 million, focusing specifically on medicine, geology, agriculture, and tourism. 'Collectively, we have ambitious goals to enhance our strategic partnership, and we anticipate that the UAE's investment footprint in our country will continue to grow,' Kudratov said, noting that nine projects under development are valued at $140 million. The strategic partnership was underpinned by significant legal frameworks, including a bilateral investment treaty agreement that was signed during Mirziyoyev's visit, complementing an existing agreement on the avoidance of double taxation. 'A major milestone was the elevation of bilateral cooperation to a strategic level during the official visit of the President of Uzbekistan to the United Arab Emirates in January 2025,' Kudratov said. Agriculture as key investment sector Beyond energy, Kudratov highlighted agriculture as offering significant opportunities for UAE investors, citing Uzbekistan's vast agricultural potential. 'Agriculture provides investors with a real opportunity. We have around 60 million acres of arable land, and a significant part of our population is engaged in this sector meaning we have a high-skilled workforce,' he said. 'Our natural conditions also create the perfect environment for high-quality crop production. This makes Uzbekistan an ideal destination for investment in agribusiness, food processing, and agricultural exports.' UAE investors have also targeted the construction materials and chemical industries, while nearly $100 million has flowed into digital technologies as Uzbekistan seeks to establish itself as a regional IT hub. 'Digital technologies emerged as another strategic focus, receiving nearly $100 million in UAE investment. This aligns with the UAE's broader commitment to fostering innovation and digital transformation,' the minister added. Government reforms support investment climate Kudratov credited Uzbekistan's improved investment climate to sweeping reforms implemented over the past five years. 'Over the last five years, our reform program has liberalised the national economy and ignited a period of strong growth. We have established an independent energy regulator, created major privatisation projects in strategic sectors from chemicals to banking and put Uzbekistan in a position to attract investors from around the world,' he said. The government has made 'significant strides in creating a business-friendly environment through infrastructural improvements and changes in governance,' he said, including financial incentives and strengthened legal rights for investors. 'It is also worth noting that all necessary conditions for doing business have been created for investors from the United Arab Emirates, including strong institutional and political support,' Kudratov added. Joint UAE-Uzbekistan investment projects, valued at nearly $4 billion, have been implemented with the participation of major UAE companies including Masdar, Mubadala, DP World, and the Abu Dhabi Development Fund. Relations between the two countries have steadily strengthened since Uzbekistan began liberalising its economy five years ago. Investment cooperation now spans traditional and alternative energy, infrastructure, chemical industry, agriculture, transport, and logistics sectors. 'The progress of the projects is under personal supervision of the leaders of two countries that confirms the strategic nature of bilateral relations,' Kudratov said.
