Dubai, UAE — December 2025 — The UAE is steadily sculpting its economic future, transitioning from a foundation built on knowledge and innovation to a dynamic and resilient “new economy” model.
Driven by a clear national vision, this transformation leverages advanced technology, flexible legislation, and a deep commitment to sustainability to diversify growth and cement the nation’s global competitiveness.
At the heart of this shift is a comprehensive framework of government policies and world-class infrastructure, designed to attract top talent and high-quality investments, as reported by the Emirates News Agency.
The ‘We the UAE 2031’ vision explicitly targets establishing the country as a global hub for this new economic paradigm within the next decade.
This ambition is already taking tangible form, with the number of companies and commercial licenses operating in new economy sectors, spanning artificial intelligence, fintech, renewable energy, and digital arts, reaching 56,000 by mid-2025.
Minister of Economy and Tourism, Abdullah bin Touq Al Marri, underscored this strategic pivot. He said the UAE is entering a new phase, transitioning from a knowledge- and innovation-based economy to a new economy model.
He explained that this direction represents today’s roadmap towards the economy of the future and is one of four key determinants set by the UAE Government under the ‘We the UAE 2031’ vision, aiming to position the country as a global centre for the new economy within the next decade.
A cornerstone of this new economy is the circular economy, where waste is minimized, and resources are continually repurposed. The UAE has approved and implemented 22 circular economy policies nationwide. These range from extending producer responsibility and developing sophisticated waste separation systems to creating a national materials database and preventing plastic leakage.
Furthermore, the UAE Circular Economy Council is developing a second policy package focused on green infrastructure, circular water management, and empowering SMEs within this sustainable framework.
Complementing this, the development of specialized economic clusters acts as a powerful driver for GDP growth. Work is currently underway, as Al Marri explained, to develop an integrated food economic cluster.
This initiative merges agricultural production, food industries, and modern agri-tech into a single, collaborative ecosystem, aiming to boost the sector’s economic contribution and empower private companies. The vitality of this field is evidenced by over 40,486 registered national and international trademarks by mid-2025.
From regulating the lifecycle of tyres and promoting sustainable aviation fuel to unifying electric vehicle charging systems, the UAE’s approach is multifaceted.
It is a holistic national project, underpinned by collaboration between public and private sectors, all focused on building a diversified, innovative, and sustainable economy ready to meet the demands of the coming century.
