UAE establishes investment ministry, forms EV and green policies

DUBAI — The United Arab Emirates on Monday established a new Ministry of Investment and several sustainable policies for electric vehicles (EV) and autonomous vehicles, in addition to approving a long-awaited hydrogen energy strategy for the country ahead of hosting the COP28 UN climate summit in Dubai at the end of the year.

Sheikh Mohammed bin Rashid Al Maktoum, the UAE Prime Minister and Ruler of Dubai, chaired a high-level cabinet meeting in Abu Dhabi on Monday and appointed the country’s new Ministry of Investment with Mohamed Hassan Al Suwaidi at its helm. 

“Our aim is to develop the investment vision of the UAE and promote the investment environment and the competitiveness of this sector in the country,” said the country’s Prime Minister, according to a press statement from the Government of Dubai. 

The UAE economy is forecast to grow by 4.2% this year, according to the Arab Economic Outlook Report published by the Arab Monetary Fund last month. Despite the economic effects of the Russian invasion of Ukraine and the COVID-19 pandemic, higher oil prices, the development of non-oil sectors, and economic reform are contributing factors to the country’s growth, the report added. This is encouraging for UAE, which is one of the world’s ten largest oil producers and holds the seventh-largest proven natural gas reserves as of last year, according to the United States International Trade Administration. 

After Monday’s cabinet meeting, the Emirates, which relies on oil exports for about 30% of its gross domestic product, is setting lofty goals ahead of the COP28 UN climate conference set to take place in Dubai this November. 

 “As a result of the accelerated economic growth, we approved the updated UAE National Energy Strategy, which aims to triple the contribution of renewable energy over the next 7 years, and invest AED150 to AED 200 billion ($40.84 to $54.46 billion) during the same period to meet the country’s growing demand for energy,” said Sheikh Mohammed, according to the Dubai Government statement. 

In tandem with this energy strategy, the cabinet meeting of ministers approved the country’s new National Hydrogen Strategy that was initially set to launch in April. 

“The strategy aims to promote the UAE’s position as a producer and exporter of low-emission hydrogen over the next eight years through the development of supply chains, the establishment of hydrogen oases and a national research and development center,” added the UAE Prime Minister. 

The Emirates will adopt its first preliminary approval for autonomous vehicles in the UAE for Chinese global driving technologies company WeRide, which will begin testing all types of self-driving vehicles, he added. The oil-rich country is also planning to expand its EV market after agreeing on new guidelines to follow at the meeting. 

“We approved the National Electric Vehicles Policy which aims to build a national network of electric vehicle chargers, organizing the market of electric vehicles, promoting associated industries to ensure lower emissions, lower energy consumption and maintain the quality of roads,” Sheikh Mohammed added. 

These cabinet policies and approvals are updates to the UAE’s National Energy Strategy 2050, which aims to decrease the country’s reliance on traditional oil and gas and shift to renewable and clean energy in the near future.