Funding & Investment <strong>The</strong> UAE Diversifies Investment Options to Boost Its Position as a Global Investment Hub <strong>The</strong> United Arab Emirates has long been known as a global investment hub, with its strategic location, business-friendly policies, and robust infrastructure attracting investors from around the world. Recently, the UAE has been actively diversifying its investment options to further enhance its position as a global hub for investment. This article delves into the recent initiatives and strategies that the UAE is implementing to broaden its investment portfolio and attract more foreign investment. <strong>The</strong> Marketplace platform marks a new chapter in the UAE’s efforts to promote global collaboration among investors, business leaders, and governments. 70 www.thefinanceworld.com <strong>April</strong> <strong>2023</strong>
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has recently launched Investopia, a novel investment platform designed to promote global collaboration among investors, business leaders, and governments. <strong>The</strong> platform aims to identify and launch new investment opportunities, foster economic growth, and incubate future economies, both regionally and worldwide. <strong>The</strong> latest initiative of Investopia was the announcement of its newly innovative investment platform “Marketplace” on 1st March, <strong>2023</strong>, with the aim of enhancing the UAE attractiveness to foreign investments in various economic and commercial sectors, especially the new economy sectors, and with the aim to position the UAE as a leading investment destination on the regional and global level. “Marketplace” Platform was launched during the 2nd edition of the Investopia Conference in Abu Dhabi on March 2nd and 3rd. H. E. Abdullah bin Touq Al Marri, Minister of Economy and Chairman of Investopia, highlighted that the UAE’s competitive and flexible investment policies, directed by the country’s wise leadership, have helped to improve its investment climate and establish its position as a significant player in the global investment arena. According to Al Marri, the “Marketplace” platform aligns with the UAE’s ambitious “We the UAE 2031” vision, which aims to position the country as a preferred global partner and a highly influential economic center. <strong>The</strong> platform will provide business communities with a single portal for accessing new investment opportunities and enablers, boosting the country’s appeal to potential investors. Moreover, this initiative will support the national goal of doubling the gross domestic product to AED 3T by 2031. Investopia has partnered with industry leaders, including the International <strong>Finance</strong> Corporation (IFC), SALT, Crypto.com, and iConnections, to develop its newly launched platform, and plans to work closely with them. <strong>The</strong> platform aims to provide opportunities for public and private companies, institutions, governments, and investors from around the world to invest and explore potential opportunities. It will feature investment options from various cities, including New York, Milan, Rabat, New Delhi, Mumbai, Cairo, Havana, and others, that have hosted Investopia’s Global Talks, as well as the UAE’s strong bilateral economic relationships with these cities. <strong>The</strong> process for registering and participating in the platform will be announced at a later stage. <strong>The</strong> platform functions by allowing companies, institutions, and governments to showcase their investment projects and opportunities, including information on sectors, locations, stages, goals, and required capital. Investors and partners from Investopia communities can then review and select projects that fit their investment strategies and portfolios. Furthermore, Investopia is actively seeking partnerships from all over the world to attract additional investment projects that can have a significant and strategic impact on the global economy. Additionally, the platform is providing investor communities with the opportunity to view project evaluations that align with their investment strategies and portfolios. By creating a comprehensive and readily available source of information, “Marketplace” aims to become the preferred platform for investment projects. <strong>The</strong> “Marketplace” at present consists of a range of investment projects put forth by multiple nations across the globe, with a focus on the energy sector, including hydroelectric power projects, as well as agricultural ventures from Kyrgyzstan. Additionally, there are electricity and energy-related initiatives from Romania and other sectors. Investopia aims to achieve a lofty objective of speeding up the investment attraction process in the country and garnering AED 550B worth of foreign direct investments by 2031, which is set to reach AED 1T by 2051. In 2021, the UAE attracted foreign direct investments valued at $20.7B, representing a 4% increase from the previous year, and making it the top recipient in West Asia, the Middle East, and North Africa. <strong>The</strong> Institute of International <strong>Finance</strong> has predicted that foreign direct investment inflows to the country will continue to grow, with an expected value of $22B in 2022, accounting for 4.3% of the country’s gross domestic product (GDP). This reflects the trust and confidence of investors and business people in the UAE as a global hub for investment and trade. Diversifying investment options in the United Arab Emirates has the potential to double its GDP. For instance, Khaldoon Al Mubarak, Co-Chief of Mubadala Investment, suggested that increasing investments in non-oil sectors could lead to a doubling of the UAE’s GDP and accelerate economic growth. He recommended investing in fields such as life sciences, clean energy, aerospace, and healthcare to ensure sustainable development. Al Mubarak made these comments the Investopia Conference in Abu Dhabi. On a global scale, the primary challenge to development is the absence of collaborative efforts to tackle shared problems, particularly the most critical danger to the planet, which is the climate crisis. Al Mubarak emphasized the need for individuals to recognize that climate change is the most significant threat to humanity, stressing the need to “prepare ourselves and our children for what’s to come,” because “future generations would be living in a world that is very different.” According to Al Mubarak, the UAE government is dedicated to addressing this challenge by promoting collaboration and finding solutions. Al Mubarak added that the government is already in the process of implementing plans to boost economic growth. According to Al Mubarak, the UAE’s GDP increased by 7.6% in 2022, and the non-oil foreign trade saw significant growth, reaching over AED 2T, a 17% increase from 2021. He cited the UAE’s achievements such as the Mission to Mars, the Abraham Accords, and CEPA deals with India, Indonesia, and Israel as examples of how collaboration can help tackle complex challenges. In conclusion, the launch of Investopia’s “Marketplace” platform marks an exciting new chapter in the UAE’s efforts to promote global collaboration among investors, business leaders, and governments. <strong>The</strong> platform’s launch during the Investopia Conference in Abu Dhabi emphasizes the country’s competitive and flexible investment policies that have helped to improve its investment climate and establish its position as a significant player in the global investment arena. By creating a comprehensive and readily available source of information, the “Marketplace” aims to become the preferred platform for investment projects, providing investor communities with the opportunity to view project evaluations that align with their investment strategies and portfolios. This initiative is set to achieve a lofty objective of speeding up the investment attraction process in the country. <strong>April</strong> <strong>2023</strong> www.thefinanceworld.com 71