The UAE Cabinet has approved the National Investment Fund with an initial capital of AED 36.7 bn, in a bid to support and attract foreign direct investment and raise annual overseas inflows, Vice President and Prime Minister Mohammed bin Rashid Al Maktoum announced during a cabinet meeting at Dubai Airshow, according to a post on X and Dubai Media Office. The initial capital commitment could be increased further, he added.

The target: The fund aims to increase FDI inflows to AED 240 bn annually by 2031, up from AED 115 bn currently. The strategy is also looking to bring the total value of foreign investment in the UAE to AED 2.2 tn by the same year — from AED 800 bn currently.

How the fund will work: The government will offer development packages to firms that are likely to contribute significantly to the Emirates’ economy. The fund will coordinate with other government bodies and departments, and operate primarily through a direct financing strategy.

ALSO FROM THE MEETING- The Cabinet approved a mutual investment protection agreement with Sri Lanka, two mutual visa exemption agreements with Trinidad and Tobago and Antigua and Barbuda, and also ratified an agreement for electrical interconnectivity between GCC countries.

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