UAE unveils national policy to accelerate economic clusters and innovation

The UAE Cabinet, led by His Highness Sheikh Mohammed bin Rashid Al Maktoum, who is Vice President, Prime Minister, and Ruler of Dubai, has officially approved a groundbreaking National Policy for Economic Clusters. This key policy — and honestly, it’s quite a big deal — aims to boost the country’s economic competitiveness by creating specialized industry clusters. These clusters will bring together related sectors that share similar traits and leverage the strengths of each emirate, such as natural resources, location advantages, mature sectors, and business-friendly environments. The idea is to develop ecosystems that encourage innovation, improve market access, and ramp up productivity across the UAE.

It’s expected that this initiative could add around AED 30 billion annually to the national GDP and boost foreign trade by approximately AED 15 billion in the coming seven years. The clusters cover vital sectors including finance, tourism and hospitality, space research, telecommunications and data analytics, plus food industries. By concentrating related businesses in specific areas, the aim is to foster a more sustainable, knowledge-based economy—supporting the UAE’s broader goals for growth, global competitiveness, and economic diversification. And honestly, this kind of targeted approach seems like a pretty handy way to set the stage for future progress.

During the first Cabinet meeting of the new government season — held at Qasr Al Watan in Abu Dhabi — Sheikh Mohammed underscored the importance of this clusters strategy. He pointed out that it would not only underpin economic prosperity but also align with the UAE’s strategic national development plans. The policy includes initiatives to simplify regulations, improve infrastructure, develop skills, and promote sustainability, with systems in place for ongoing monitoring and knowledge sharing to keep the approach flexible and responsive.

On top of that, the Cabinet approved the agenda for the UAE Government Annual Meetings — scheduled for November 4 to 6, 2025, in Abu Dhabi. These sessions will gather over 500 senior government officials and are expected to focus sharply on key priorities like education, health, family and identity, economic competitiveness, and integrating artificial intelligence into government services. Sheikh Mohammed described these meetings as critical for strengthening national cohesion and driving government excellence along with innovation. It’s important, I think, because they’re really setting the groundwork for a smarter, more unified approach to governance.

Another notable decision was the approval to establish the UAE Council for Integrative Medicine, led by Sheikha Salama bint Tahnoon Al Nahyan. This council aims to formalize a multidisciplinary approach that mixes modern medicine with traditional practices—helping to treat mind, body, and spirit in a more holistic way. They plan to develop evidence-based protocols, increase public awareness, and build capacity in this emerging field. It’s a clever move, really, because integrating different medical traditions could ultimately improve healthcare options available to residents and visitors alike.

The Cabinet also took a close look at the progress of the UAE Genome Council, which has made significant strides in health initiatives. For instance, genetic screening for prospective marriage partners, and over 750,000 people have enrolled in the National Genome Programme. These efforts aim to enhance precision medicine and address genetically-linked diseases—showing how the country is increasingly embracing scientific advances to protect future generations’ health.

Environmental sustainability remained a core focus as well. The Council approved an updated National Plan to cut emissions from the aviation sector, aligning with international environmental commitments. They reviewed ongoing efforts under the National Air Quality Agenda 2031, which connects federal and local authorities to tackle pollution and safeguard ecosystems. It’s pretty clear that the UAE is serious about balancing urban development with environmental responsibility.

In addition, the Cabinet endorsed updates to information security policies, set standards for electric vehicle charging stations, and restructured some key advisory bodies like the Anwar Gargash Academy and the UAE Digital Economy Council. They also agreed to sign off on 85 international agreements and MoUs across various sectors—enhancing their global partnerships and diplomatic ties. That collaborative spirit is really evident in these moves.

All in all, this comprehensive lineup of initiatives demonstrates how the UAE is leading the way—blending innovation in the economy and healthcare, pushing for environmental sustainability, and strengthening governance. As Sheikh Mohammed pointed out, these efforts align precisely with the vision of the nation’s leadership, promising a future built on resilience, diversification, and progress that benefits everyone living and working in the UAE.

Source: Noah Wire Services