Economic Diplomacy

Economic Diplomacy in the UAE

The Ministry of Foreign Affairs plays a key role in promoting the economic interests of the UAE abroad by:

• Attracting foreign investments;
• Encouraging outbound investments;
• Strengthening bilateral and multilateral economic relationships;
• Negotiating trade agreements; and
• Providing valuable economic intelligence.

These initiatives align with the UAE's long-term financial and social objectives as outlined in Vision 2021 and the 2071 Centenary Plan.

Diplomacy through Partnership

MoFA collaborates closely with Emirate-level investment promotion agencies, the private sector, sovereign wealth funds, business councils, and other economic actors to achieve successful outcomes through economic diplomacy. For instance, in late 2019, the Emirates Diplomatic Academy hosted an Economic Diplomacy Seminar with Saudi Arabia, strengthening the economic ties between the two nations. This event, held in partnership with the Prince Saud Al-Faisal Institute of Diplomatic Studies, supported Emirati and Saudi entities in foreign markets, assessed the level of global integration of their economies, and promoted foreign direct investments to create jobs in both countries.

Trade Facilitation

The UAE has established itself as a regional and global trading hub, enhanced by its strategic geographic location between Asia, Europe, and Africa, making it a gateway to the Middle East. To increase trade volume, the UAE strongly advocates for global free trade and has been a member of the World Trade Organization since 1996.

MoFA supports national efforts to establish bilateral Double Taxation Agreements and Bilateral Investment Treaties (Investment Protection and Promotion Agreements). The Ministry also assists in signing bilateral aviation agreements, vital for the UAE’s significant aviation sector.

Inward and Outward Investment

The UAE has a strong record of attracting foreign direct investment (FDI) through favourable tax regulations, well-developed infrastructure, and minimal barriers to establishing a business, and the government is committed to providing an optimal regulatory environment. The 2018 FDI Law allows for 100% foreign ownership in many economic sectors, which supports investments that enhance regional and global production chains focused on advanced and high-value industries.

Additionally, the UAE facilitates outward investment through successful sovereign wealth funds, making significant investments around the world. The returns from these funds are reinvested into the UAE's development, targeting areas like energy, industry, communications and information technology, infrastructure, healthcare, and renewable energy.