Minister of Economy Abdulla bin Touq Al Marri reveals what Cyprus can learn from the UAE's economic experience

The United Arab Emirates Minister of Economy, Abdulla bin Touq Al Marri, has outlined the country’s strategy for thriving in a multipolar world, from diversifying its oil-based economy to becoming a challenger in the AI race.

He also explores the growing Cyprus-UAE nexus, following the island’s recent hosting of Investopia, the UAE’s flagship platform for convening global capital and dialogue.

In an era of mounting global uncertainty, from shifting tariff regimes to fragmentation in global trade, how is the UAE positioning itself to remain an agile and resilient hub for international commerce and investment?

The UAE continues to thrive in an increasingly multipolar world by embracing a policy of open trade, economic diversification and deep global partnerships. We recognise that sustainable growth lies in building bridges – not walls – across markets and regions.

To that end, the UAE has concluded 19 Comprehensive Economic Partnership Agreements (CEPAs) with strategic economies, collectively representing a market of over 2.5 billion people. These agreements are a key part of our strategy to reduce reliance on any single bloc and to strengthen our position as a global trade and investment hub.

Complementing this, the UAE’s world-class logistics infrastructure – ranked among the top 10 globally – ensures resilience and continuity even in the face of supply chain disruptions. Together, these pillars enable the UAE to remain agile, connected and competitive on the global stage.

With non-oil sectors now accounting for 75% of the UAE’s GDP, the country stands as a model for economic diversification. Which decisions proved pivotal in achieving this transformation? And what lessons might be relevant for smaller economies like Cyprus?

The UAE’s economic diversification goes beyond metrics – it’s rooted in meaningful transformation. This commitment is evident in the amendments made to the legal and regulatory landscape to make it more competitive, transparent and inclusive.

These include the introduction of 100% foreign ownership in key sectors, the revamp of the residency system with Golden Visa and other visas, strengthened anti-money laundering and IP protection frameworks, the expansion of free zones, robust investments in AI, fintech and logistics and the introduction of digital economy laws that foster innovation while safeguarding privacy and ethics.

In tandem, tailored measures were launched to support SMEs, startups and family businesses, underscoring the pivotal role of entrepreneurship and innovation in fuelling economic growth. The Comprehensive Economic Partnership Agreements that I have mentioned are driving our growth in critical sectors such as logistics, clean energy, advanced technology and sustainable food systems.

In addition, our investments in sectors such as renewable energy, circular economy, biotechnology, R&D and advanced manufacturing have been robust. A wide array of initiatives was launched to attract FDI to new economic sectors and support businesses and startups operating in these fields.

The ratification of CEPAs alone helped the UAE’s non-oil trade soar to over AED1.4 trillion (approx. €236 billion) in H1 2024, an increase of 66% compared to the same period in 2019. Non-oil GDP grew by 6.2% on average between 2021 and 2024, with transportation and ICT leading the growth in 2024.

For smaller economies such as Cyprus, the UAE’s experience underscores the importance of implementing early regulatory reforms and designing targeted, sector-specific incentives to attract Foreign Direct Investment.

These strategic measures can help create a more competitive business environment, stimulate innovation and accelerate the development of high-potential industries, ultimately positioning the economy for sustainable growth in an increasingly interconnected global market.

Cyprus and the UAE are both transitioning towards knowledge-driven economies. Beyond infrastructure and investment, how is the UAE fostering the kind of intellectual and entrepreneurial capital that sustains such a shift? And where do you see potential for bilateral collaboration?

The UAE is rapidly advancing its position as a global hub for emerging technologies, through bold institutional and academic initiatives. The recent launch of the Artificial Intelligence and Advanced Technology Council, along with the development of major AI campuses in Abu Dhabi, reflects our nation’s commitment to shaping the future of innovation.

At the same time, our academic institutions, such as the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) and the Anwar Gargash Diplomatic Academy, are playing a pivotal role in preparing the next generation of leaders, thinkers and technologists.

Looking ahead, there is significant potential for bilateral collaboration between the UAE and Cyprus through the establishment of joint research hubs, academic exchange programmes and technology transfer platforms. These initiatives can deepen cross-border innovation ecosystems and accelerate shared progress in critical areas like AI, quantum computing, sustainability and digital diplomacy.

The UAE has made bold bets on artificial intelligence, from Falcon to the recent semiconductor partnership with the US. What’s the long-term ambition here: to be a regional leader or a global AI powerhouse?

The UAE is actively building sovereign AI capabilities with the ambition to lead on the global stage. A clear example of this is Falcon LLM – one of the world’s top open-source large language models – which reflects our commitment to developing homegrown AI solutions that are both cutting-edge and accessible. But our ambition goes beyond deploying AI technologies; we are focused on shaping the entire ecosystem that surrounds them. This includes investing in foundational infrastructure, cultivating a highly skilled talent base and contributing to the development of ethical frameworks that ensure responsible and inclusive AI deployment. Through this comprehensive approach, the UAE aims not only to adopt AI but to influence its future direction in a way that benefits the broader global community.

How does the UAE intend to develop generative AI responsibly, not only in terms of regulation but also as regards data ethics, public trust and long-term societal impact?

The UAE is taking a proactive and principled approach to the integration of AI within public governance. Central to this effort is the incorporation of responsible AI principles, particularly around data integrity, transparency and inclusivity, into the design and delivery of government services.

As part of our global leadership in this space, the UAE hosts the Global Governance of AI Roundtable, a high-level platform that brings together international experts and stakeholders to shape the ethical deployment of AI technologies. At home, we are building a regulatory ecosystem that strikes a careful balance between enabling innovation and fostering public trust.

By aligning governance frameworks with emerging technologies, the UAE aims to ensure that AI serves the broader public good while maintaining the highest standards of accountability and human-centric development.

With Europe deepening its strategic engagement with the Gulf, what new opportunities do you see for expanding trade and capital flows between the UAE and countries like Cyprus? What sectors or deals are currently under discussion?

Cyprus and Greece are priority partners within the UAE’s broader Mediterranean strategy, which aims to deepen economic, technological and strategic ties across the region. The selection of Cyprus to host Investopia Global – Mediterranean confirms this fact.

Our partnerships with both countries have gained strong momentum in recent years. UAE-Cyprus trade has grown by 25% since 2019, with more than 420 Cypriot companies now operating in the UAE – a clear sign of growing investor confidence and mutual opportunity.

Similarly, bilateral trade between the UAE and Greece reached $600 million in 2024, reflecting a shared commitment to strengthening trade exchanges. Current areas of cooperation under active discussion include energy, digital infrastructure, sustainable tourism, artificial intelligence and logistics corridors that enhance regional connectivity. These sectors reflect a forward-looking agenda focused on innovation, sustainability and shared prosperity, underpinned by a spirit of long-term partnership and regional collaboration.

The UAE has become a magnet for High Net Worth Individuals and skilled professionals – something that Cyprus also aspires to become. What is your government doing about the long-term social infrastructure – education, culture, quality of life – needed to support this demographic transformation?

The UAE offers a uniquely attractive environment for global talent and investors, with incentives that go far beyond business fundamentals. Golden and Green Visas, zero personal income tax and world-class infrastructure are the foundations for long-term residency and professional growth. But our value proposition extends well beyond these benefits.

Strategic investments in education, museums, wellness hubs and cultural districts are helping to create vibrant, inclusive communities that support a high quality of life for residents and their families, for the long term. Our vision is holistic – one that seamlessly integrates capital, talent and lifestyle – to position the UAE not just as a place to do business but as a place to belong.

This human-centred approach is integral to our strategy for sustainable economic development and global competitiveness. Cyprus has strong potential to replicate a similar integrated strategy by building further on its existing advantages – strategic location, EU membership and quality of life.

How does Investopia complement the UAE’s wider ambition to position itself as a global convener of capital, innovation and policy? What tangible results have you seen so far? And what led to organising the recent event in Cyprus?

Investopia is the UAE’s flagship platform for convening global capital and forward-thinking minds to shape the future of the new economy. Launched in 2021, it serves as a catalyst for dialogue, investment and collaboration across emerging sectors such as AI, green energy, fintech and advanced manufacturing.

Since its inception, Investopia has expanded its global footprint by hosting high-level dialogues in India, Europe, North Africa and, now, in Cyprus, with each edition turning vision into actionable connectivity and new partnerships. Cyprus was chosen as a strategic host, not only for its growing innovation ecosystem but also for its unique position as a bridge between Europe and the Arab world.

Through Investopia, we aim to foster cross-regional collaboration and unlock new investment flows that support inclusive, knowledge-driven economic transformation.

This interview first appeared in The Cyprus Journal of Wealth Management, presented by Eurobank Cyprus. Click here to view it.