The United Arab Emirates is rapidly cementing its position as a global leader in the new economy, driven by innovation, advanced technologies, and a knowledge-based approach to development. As of mid-2025, the number of companies and business licenses operating within new economy sectors has reached 56,000, signaling a major milestone in the country’s economic transformation journey.

According to Abdullah bin Touq Al Marri, Minister of Economy and Tourism, the UAE is transitioning from a knowledge and innovation-driven economy to a broader model of the “new economy.” This strategic shift is part of the nation’s long-term vision — We the UAE 2031 — which outlines four key pillars, with the goal of establishing the UAE as the global capital of the new economy by the next decade.

Driving Forces Behind the New Economy

The rise of the new economy in the UAE spans several cutting-edge sectors, including artificial intelligence, financial technology (fintech), advanced manufacturing, digital commerce, renewable energy, smart mobility, the circular economy, and green technologies. The Ministry of Economy has played a central role by launching initiatives, fostering partnerships, and driving projects aimed at nurturing these emerging fields.

By developing proactive legislation and policies in collaboration with public and private sector partners, the government has introduced or updated 10 key legal frameworks. These include laws related to e-commerce, intellectual property rights, industrial property protection, and commercial transactions — all aimed at fostering a forward-thinking and adaptive legal environment.

Focus on Strategic Economic Clusters

One notable development is the ongoing work on the national policy for economic clusters, which is a major catalyst for increasing the new economy’s contribution to the national GDP. Among the most promising clusters is the emerging food economy hub, integrating agriculture, food industries, and agri-tech into a unified system of innovation and cooperation.

“The food cluster aims to boost the sector’s contribution to the economy and enhance competitiveness by empowering private sector companies,” Al Marri stated. As of mid-2025, over 40,486 national and international food-related trademarks have been registered in the UAE — a clear indicator of the sector’s dynamic growth.

Leading in Circular Economy Policies

Another cornerstone of the UAE’s economic strategy is the transition to a circular economy. The UAE Circular Economy Council is currently working on a second package of policies to deepen this shift. These include developing a national roadmap for green infrastructure, promoting circular water usage in industry, and supporting reverse logistics and waste-reduction projects.

Special attention is being given to enabling small and medium-sized enterprises (SMEs) operating in the circular economy, in line with the UAE Circular Economy Agenda 2031. The government has already rolled out 22 national policies across sectors — from expanding recycling practices and waste separation to improving data systems and promoting the use of recycled materials in consumer goods.

Building a Resilient, Innovation-Led Future

The UAE’s comprehensive approach to the new economy is a reflection of its clear national vision: to build a diversified, resilient, and innovation-driven economic model. This model prioritizes human capital development, attracts high-quality investments, and is supported by agile legislation and world-class infrastructure.