February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

Foreign Direct Investment (FDI) Law refers to legislation governing the conditions under which foreign nationals and companies can invest in, own, and operate businesses within a sovereign jurisdiction. FDI laws typically address ownership limits, sector restrictions, licensing requirements, and investor protections. Liberalising FDI law — reducing barriers and expanding sectors open to foreign capital — is a common strategy for countries seeking to attract international investment and integrate into global value chains.

UAE Context

The UAE’s landmark reform came with Federal Decree-Law No. 26 of 2020 on Commercial Companies, which eliminated the longstanding requirement that UAE mainland companies have a 51 percent Emirati ownership share. This was reinforced by the 2020 Positive List identifying more than 1,000 economic activities across 13 sectors open to 100 percent foreign ownership. Previously, full foreign ownership was only permitted within designated free zones. The reform fundamentally changed the UAE’s investment landscape, making it possible for foreign entrepreneurs and corporations to establish and fully control onshore businesses across most sectors including services, manufacturing, agriculture, and technology.

Key Data

Following the FDI reforms, the UAE attracted USD 23 billion in FDI inflows in 2023, ranking it the top FDI destination in the MENA region and among the top 20 globally. The number of new commercial licences issued to foreign investors increased by over 30 percent in the two years following the law’s implementation. Strategic sectors including defence, oil and gas concessions, and banking retain Emirati ownership requirements.

Vision 2031 Significance

The FDI Law is among the most structurally significant economic reforms in the UAE’s modern history. By removing the ownership barrier that historically deterred many international companies, the law directly supports the UAE’s ambition to diversify its economy, deepen its industrial base, and position itself as the preferred regional headquarters for multinational corporations.

  • Commercial Companies Law — The broader corporate legislation within which FDI rules sit.
  • Free Zones — Designated areas that offered 100 percent foreign ownership before the mainland reforms.
  • Economic Diversification — The strategic objective driving FDI liberalisation.
  • Positive List — The list of sectors open to full foreign ownership under the FDI Law.