UAE's new economic model during his meeting with Chairman & CEO of Morgan Stanley

Government

UAE's new economic model during his meeting with Chairman & CEO of Morgan Stanley

Minister of Economy reiterates commitment to strengthening cooperation and fostering productive partnerships with global financial institutions and firms

H.E. Abdullah bin Touq Al Marri, UAE Minister of Economy, recently visited the headquarters of Morgan Stanley in New York City. He was welcomed by Mr. James P. Gorman, Chairman and CEO of Morgan Stanley. Their meeting focused on exploring collaboration opportunities to enhance investments, financial services, and promote sustainable economic development.

During his visit, H.E. Bin Touq also participated in a roundtable meeting with prominent investors, discussing the potential of the financial markets in the UAE and the USA. Additionally, he attended the Abu Dhabi Securities Exchange Conference alongside Morgan Stanley, with H.E. Ghannam Butti Al Mazrouei, Chairman of the Abu Dhabi Securities Exchange, in attendance.

H.E. Bin Touq emphasized the UAE’s commitment to fostering partnerships with global financial institutions and major investment funds. These efforts aim to enhance the UAE’s business landscape, modernize economic legislation, and reinforce its status as a leading global hub for business and investment. He highlighted the significant role that Morgan Stanley and international banks play in these endeavors, particularly in supporting investments in rapidly growing sectors and facilitating a transition towards innovative economic models.

Discussing the UAE’s new economic model, H.E. Bin Touq noted its foundation in knowledge and innovation, which ensures resilience against global challenges and accelerates economic diversification. With non-oil sectors contributing 74% to the UAE's GDP, the model has boosted foreign investments in sectors like fintech, entrepreneurship, clean energy, sustainable manufacturing, smart transportation, and the circular economy.

He highlighted the UAE's ongoing sustainable development, supported by competitive economic policies and global partnerships. The non-oil GDP increased by 5.9% in the first nine months of 2023, with inward FDI reaching $22.737 billion, a nearly 10% growth from 2022, marking the second-highest global increase in new foreign investment projects.

Both sides exchanged views on flexible economic policies and their role in creating opportunities for the private sector. They discussed global economic developments, the need for private investments in sustainable sectors, and the latest strategies for economic diversification.

In his roundtable meeting, H.E. Bin Touq elaborated on recent developments in the UAE’s business environment, encouraging investors and entrepreneurs to take advantage of new economic laws, such as allowing full foreign ownership of companies. These changes have increased the number of companies in the UAE to over 788,000 by the end of 2023, with the UAE being recognized as the best place globally to start and operate new businesses according to the Global Entrepreneurship Monitor 2023/2024 report.

H.E. Bin Touq also discussed the growing economic and investment cooperation between the UAE and the USA, which has seen significant growth. UAE’s FDI in the USA totaled $3.7 billion between 2018 and 2023, while American FDI flows to the UAE reached nearly $9.5 billion in the same period. Over 115 UAE companies operate in the US across various sectors, with more than 1,160 American companies active in the UAE.

Highlighting the UAE’s tourism sector, H.E. Bin Touq mentioned plans to attract AED 100 billion in new tourism investments over the next decade, aligning with the UAE’s National Tourism Strategy 2031.

H.E. Ghannam Butti Al Mazrouei, Chairman of Abu Dhabi Securities Exchange, praised H.E. Bin Touq's participation in the ADX conference, encouraging American investors to capitalize on the UAE’s favorable investment environment. The Abu Dhabi Securities Exchange, with a market value nearing USD 1 trillion and a portfolio of over 120 listed companies, represents key growth sectors and remains the most active ETF market in the MENA region. In 2023, ADX saw a trading volume surge to USD 1.4 billion, a 160% YoY growth, and generated over USD 5.6 billion from IPOs, representing 56.3% of the region's total proceeds.

Morgan Stanley, active in the Middle East since the 1970s, established its regional headquarters in the Dubai International Financial Centre in 2006, providing a comprehensive range of investment banking products and services from this strategic location.