The United Arab Emirates has officially approved the establishment of a National Investment Fund (NIF), with an initial capital of AED 36.7 billion (approximately USD 10 billion), the UAE government announced on November 20, 2025. The launch was personally announced by UAE Vice President and Prime Minister, and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, during a cabinet meeting held at the 2025 Dubai Airshow. Funded directly from the federal budget, the NIF will be periodically reviewed and may receive additional capital allocations based on development needs.

The NIF is designed to play a central role in the UAE's economic transformation, with a clear mission to significantly boost foreign direct investment (FDI) through innovative, incentive-driven financial programs. Quantitative targets are ambitious: by 2031, the fund aims to raise annual FDI inflows from the current AED 115 billion to AED 240 billion, while doubling cumulative FDI stock from AED 800 billion to AED 2.2 trillion, achieving both scale and quality growth.

To achieve these objectives, the NIF will focus on five strategic sectors: industrial, logistics, financial services, renewable energy, and information technology. The fund will identify companies capable of generating “substantial economic impact” and provide tailored development support packages. Through close coordination with federal and emirate-level economic, investment, and tourism authorities, the NIF will directly fund strategically significant projects, ensuring efficient allocation of resources.

Operationally, the NIF will work in tandem with the “Invest UAE” national brand strategy. The combined approach includes high-profile investment summits, global roadshows, targeted digital marketing campaigns, and initiatives to enhance the UAE's global investment profile. This initiative aligns with the UAE's 2031 economic diversification strategy, reinforcing its position as a leading global business hub, supporting the industrial strategy (targeting AED 300 billion contribution to GDP from industry by 2031), and accelerating the transition from an oil-dependent economy amidst global energy and technological shifts.

The establishment of the NIF also sends a strong signal to international investors. Sheikh Mohammed emphasized via social media: “The UAE welcomes you and will provide the best environment for investment, fully supporting your future growth and success.” This high-level endorsement underlines the UAE's commitment to building an open, transparent, and investor-friendly ecosystem. More importantly, it marks a shift from passive attraction of capital to proactive strategic investment, moving from policy-driven incentives to ecosystem-driven growth, providing institutional guarantees and predictable returns for global capital engaging in the UAE's economic transformation.