The UAE Cabinet recently convened at the illustrious Qasr Al Watan in Abu Dhabi, under the leadership of the Vice President, Prime Minister of the UAE, and Ruler of Dubai. The session brought together a distinguished group of senior leaders, including H.H. Sheikh Mansour bin Zayed Al Nahyan, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, and H.H. Lt. General Sheikh Saif bin Zayed Al Nahyan, to discuss crucial national initiatives and provide updates on various fronts.
The gathering emphasized the UAE’s commitment to continuous improvement as it reviewed progress in key areas such as global competitiveness, housing initiatives, digital transformation efforts, and comprehensive trade partnerships. The Cabinet has positioned the UAE as a leader in several domains, reinforcing its prominence on the international stage.
UAE Joins the World’s Top 5 in Global Competitiveness
A highlight of the meeting was the Cabinet’s review of the UAE’s significant achievement in the 2025 IMD World Competitiveness Report, where the nation ranked fifth globally—an impressive leap from 28th in 2009. This remarkable ascent places the UAE ahead of powerhouse nations such as the United States, Sweden, and Germany. Notably, the UAE ranked first globally in the “absence of bureaucracy” index and second in “government policy adaptability,” showcasing its efficient governance.
The ascent in global competitiveness can largely be attributed to the establishment of a national competitiveness center fourteen years ago. Since its inception, the center has driven consistent efforts from various governmental entities that have culminated in enhanced economic performance, government efficiency, and an inviting business environment.
Progress in Housing, Development, and Infrastructure
The Cabinet has also championed social stability through housing initiatives, approving over AED 1.2 billion in grants for 1,838 Emirati citizens in the first half of the year. This initiative aligns with the UAE’s broader strategy to ensure dignified housing and bolster family stability, reflecting the country’s dedication to its citizens.
Additional discussions revolved around the Emirates Council for Balanced Development, chaired by Sheikh Theyab bin Mohamed bin Zayed Al Nahyan. The council’s well-rounded projects aim to enhance economic and social growth, particularly in rural areas, creating opportunities for families, youth, and small businesses. Notable projects include waterfront enhancements in Qidfa and Al Sila’, public amenities in Masfout, and new cultural attractions in Al Rams, demonstrating a strong commitment to grassroots development.
Free Trade, Industrial Growth, and SME Impact
In terms of trade and industrial expansion, the Cabinet reviewed the 2024 annual report from the Higher Commission for Free Trade Negotiations. The report highlighted the conclusion of 27 Comprehensive Economic Partnership Agreements (CEPAs), with eight currently in execution, significantly boosting the UAE’s foreign trade volume which has exceeded AED 5.2 trillion in 2024.
The growth of non-oil exports also tells a positive story, soaring to AED 440 billion in 2023—a remarkable 83 percent increase compared to 2019. Performance in re-exports and foreign direct investment (FDI) inflows has further solidified the UAE’s status in global trade.
In a bid to enhance local manufacturing, the 2025 edition of “Make it in the Emirates” attracted over 122,000 participants and facilitated AED 168 billion in procurement agreements, localizing nearly 5,000 products. The initiative also announced AED 11 billion in new industrial projects and AED 40 billion in financing specifically aimed at bolstering UAE-based SMEs and manufacturers. Furthermore, a new accolade was introduced this year to celebrate individuals and organizations excelling in traditional Emirati crafts, linking cultural heritage with modern innovation.
Digital Adoption, Maritime Strategy, and Environmental Measures
The meeting underscored the UAE’s relentless pursuit of digital transformation. Currently, the UAE’s digital identity platform boasts over 11 million registered users, with more than 600 million secure logins to date. Over 130 entities from both government and private sectors are integrated into this robust digital ecosystem, facilitating a staggering 2.6 billion transactions.
In the maritime domain, the Cabinet approved the establishment of the National Maritime Navigation Center under the Ministry of Energy and Infrastructure. This center will handle various aspects of maritime traffic, safety, environmental protection, and scientific research, enhancing coordination across the maritime sector—a strategic move for a country with extensive coastlines and an expansive maritime economy.
On the environmental front, the restructured UAE Council for Climate Action will oversee the nation’s Net Zero 2050 strategy. Key initiatives include identifying nine biodiversity hotspots, expanding protected areas, and embarking on a mission to plant 100 million mangroves by 2030—demonstrating a strong commitment to sustainability and environmental stewardship.
National and Global Engagement
In an effort to further enhance the UAE’s international standing, the Cabinet approved negotiations for 36 bilateral agreements encompassing economic, investment, tourism, and legal sectors with nations like Montenegro, Uganda, and Kenya. Additionally, four new embassies will open in Africa, along with a new consulate in Miami, USA, to deepen diplomatic ties.
The UAE has also become an active participant in international forums, including the International Competition Network and the OECD Forum on Tax Administration. On the legislative front, the Cabinet is set to draft a new federal law aimed at preserving cultural heritage and enhancing alignment on the global stage regarding intangible heritage protection.
A Steady Approach to Growth
Throughout the meeting, the emphasis was on strategic, steady planning across diverse sectors, from trade agreements to infrastructure improvements, SME financing, and digital advancements. The Cabinet’s initiatives reflect a comprehensive investment in long-term, inclusive growth, showcasing an ecosystem that increasingly supports small and mid-sized businesses, bolstering the overall national development agenda.
