Programme Objectives and Scope
The National Innovation Strategy, launched in 2014 and updated in 2018, provides the UAE’s overarching framework for transitioning from a resource-dependent economy to one driven by knowledge, creativity, and technological innovation. The strategy identifies seven priority sectors — renewable energy, transport, health, education, technology, water, and space — where innovation investment can yield the greatest returns for the national economy. The programme encompasses the full innovation ecosystem: R&D funding, intellectual property frameworks, science and technology education, research institutions, start-up incubation, venture capital availability, and regulatory environments that encourage experimentation and commercialisation.
Key Targets and KPIs
The primary target is achieving a top-ten position in the Global Innovation Index (GII), published annually by WIPO. Supporting KPIs include increasing national R&D expenditure as a percentage of GDP (targeting 1.5 percent, up from approximately 1.3 percent), growing the number of patents filed by UAE-based entities, increasing the number of technology start-ups and scale-ups, raising private sector R&D investment, and expanding the pipeline of STEM graduates from UAE universities. The strategy also tracks the commercialisation rate of university research, the availability of venture capital, and the regulatory burden on innovative business models.
Implementation Status and Progress
The UAE has risen significantly in global innovation rankings since the strategy’s launch, consistently placing among the top 40 nations globally in the GII and leading the Arab world. The establishment of the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the Khalifa University research programmes, and the NYU Abu Dhabi and Sorbonne Abu Dhabi research centres have strengthened the institutional research base. The UAE Innovation Month, held annually, promotes innovation culture across government and private sector. Free zone frameworks in ADGM, DIFC, and technology-focused zones have reduced barriers to establishing innovative businesses. The Mohammed bin Rashid Innovation Fund provides co-guarantee facilities for innovative companies seeking bank financing.
Lead and Supporting Institutions
The Ministry of Cabinet Affairs provides strategic oversight, with the Emirates Innovation Council coordinating across federal entities. Each federal ministry and government entity is required to appoint a Chief Innovation Officer and allocate a percentage of budget to innovation initiatives. The Mohammed bin Rashid Centre for Government Innovation promotes public sector innovation. Supporting institutions include Khalifa University, MBZUAI, the Technology Innovation Institute (TII) in Abu Dhabi, and Hub71, Abu Dhabi’s global technology ecosystem. Dubai’s AREA 2071 and Dubai Future Foundation further support the innovation agenda at the emirate level.
Relationship to We the UAE 2031 Pillars
Innovation is positioned as a cross-cutting enabler across all We the UAE 2031 pillars. The economy pillar depends on innovation to drive productivity growth, economic diversification, and the creation of new industries. The society pillar benefits from innovation in healthcare, education, and public services. The sustainability pillar requires technological innovation to achieve energy transition and resource efficiency targets. The global engagement pillar is strengthened by the UAE’s reputation as an innovation-friendly jurisdiction that attracts global talent and investment.
Funding and Resource Allocation
The federal government mandates that each ministry allocate a portion of its budget to innovation projects. The Mohammed bin Rashid Innovation Fund provides AED 2 billion in co-guarantee facilities. The Abu Dhabi government funds the Technology Innovation Institute and Hub71 through Mubadala and the Advanced Technology Research Council. The Emirates Development Bank provides innovation-linked financing to SMEs. Total national R&D expenditure is estimated at approximately 1.3 percent of GDP, with the target of reaching 1.5 percent implying annual R&D spending approaching AED 30 billion across public and private sectors.