The UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, convened at Qasr Al Watan in Abu Dhabi to chart a new phase of economic diversification through Islamic finance, tourism development, SME support, and digital innovation.
A core focus of the meeting was the approval of the UAE Strategy for Islamic Finance and Halal Industry, designed to expand the country’s leadership in the global Islamic economy and also enhance non-oil sector growth. The strategy sets clear objectives: increase Islamic banking assets to AED2.56 trillion ($697 billion) within six years, and raise listed Sukuk value to AED660 billion ($180 billion) by 2031.
Driving Global Leadership in Islamic Finance and Halal Trade
“Sheikh Mohammed bin Rashid stated, “The strategy supports our vision to lead global Islamic finance and expand halal exports worldwide. It reflects our commitment to building a competitive, sustainable, and innovation-driven economy.”
To implement the strategy, the Cabinet formed a high-level committee led by the Governor of the Central Bank. The plan not only aims to scale Islamic banking but also supports halal manufacturing and global trade facilitation—positioning the UAE as a key hub in the Islamic economic ecosystem.
Beyond banking, the framework includes efforts to boost halal product production and increase international market access for UAE-based exporters, reinforcing the country’s ambition to dominate both financial and consumer segments of the Islamic economy.
Tourism Sector Targets AED450 Billion GDP Contribution
The Cabinet also reviewed record performance from the country’s tourism sector. In 2023, tourism and hospitality contributed AED220 billion ($60 billion) to the UAE’s economy—11.7% of GDP—while generating over 800,000 jobs. In 2024, this figure is projected to reach AED236 billion ($64.3 billion).
With over 30 million hotel guests recorded in 2024, marking a 9.5% year-on-year rise, and hotel revenues climbing to AED37 billion ($10.1 billion), the UAE continues to attract global travellers. Supported by the “World’s Coolest Winter” campaign and the National Tourism Charter, the Cabinet has also set a 2031 target of AED450 billion ($122.5 billion) in tourism GDP contribution.
These initiatives aim to leverage the UAE’s robust infrastructure and international appeal to anchor long-term growth in tourism and hospitality.
SMEs, AI Integration, and National Innovation
The Cabinet also addressed the SME sector’s rapid development. Between 2020 and 2024, business licences issued to small and medium enterprises surged by 160%. The UAE ranked first globally for the fourth consecutive year in the International Business Leadership Observatory’s 2024–2025 report, and placed among the top 20 in global innovation and ecosystem rankings.
“Sheikh Mohammed affirmed, “Our objective is to offer an ecosystem where entrepreneurs can thrive and innovate. SMEs remain a cornerstone of our economic resilience and growth.”
Further, the Ministry of Human Resources and Emiratisation (MOHRE) presented advancements in artificial intelligence, including a labour market simulation model, an AI-based decision-making platform, and digital automation tools to streamline services.
National Readiness for Hajj and Online Safety
The Cabinet also reviewed progress from the UAE Council for Digital Wellbeing, which focused on cybersecurity and online safety. Efforts included blocking over 8 million phone numbers tied to harmful products, combating drug-related content, and disrupting cyber threats such as malware and phishing.
In parallel, preparations for the 2025 Hajj season were evaluated. The UAE Hajj Affairs Department—under the General Authority of Islamic Affairs and Endowments and Zakat—has coordinated closely with local authorities to ensure seamless and secure pilgrimages for UAE citizens.
Building a Diversified, Innovation-Led Economy
These strategic initiatives also reaffirm the UAE’s commitment to developing a diversified, knowledge-based economy driven by sustainability, digital transformation, and global partnerships. From Islamic finance to tourism, SMEs, and AI, the country continues to position itself as a global benchmark for forward-thinking governance and inclusive economic development.
