UAE economic diversification praised in MENA‑OECD report as global model for legislative reform
MENA‑OECD annual report lauds UAE economic diversification, highlighting 35 regulatory reforms, Tourism Strategy 2031, SME growth, rapid licensing and a new food economic cluster.
The first annual MENA‑OECD Business Advisory Board report, titled “Building Diverse and Connected Economies: Private‑sector‑led Strategies,” identifies the UAE as a global model for UAE economic diversification through proactive, partnership‑driven legislation. The report, produced after the Advisory Board meeting held in Dubai during Expo 2020 activities on October 29–30, 2025, credits the country’s mix of regulatory reform, public‑private collaboration and digital platforms for strengthening competitiveness. It emphasises practical policy tools that support growth in tourism, SMEs, agrifood systems and logistics while promoting sustainability and innovation.
MENA‑OECD report spotlights UAE legislative leadership
The report underscores the UAE’s role as an international example for modern economic and tourism regulation driven by partnership and innovation. It highlights the country’s alignment with global best practices and its use of policy labs and stakeholder dialogues to translate ideas into implementable measures. The Advisory Board gathered representatives from governments and the private sector across MENA and OECD countries, producing recommendations focused on competitiveness and diversification.
The report notes that the UAE’s policy approach has prioritised agility and openness to future trends across several policy areas. This includes attention to family businesses, digital trade, commercial law, consumer protection and cooperative models, all designed to support resilient growth.
Regulatory overhaul: more than 35 economic measures in five years
Officials cited in the report say the Ministry of Economy and Tourism, in partnership with relevant authorities, issued or updated more than 35 economic laws, policies and decisions over the past five years. Of those, roughly 10 targeted new‑economy sectors, and about 19 measures were issued in the most recent year alone, reflecting an accelerated reform agenda. The ministry frames this push as part of a strategic objective to make the UAE a leader in anticipatory legislation for emerging sectors by the next decade.
Ministry officials told the Advisory Board that these reforms aim to boost flexibility, reduce administrative burdens and prepare the economy for technological and market shifts. The cumulative effect is presented as raising the country’s appeal to investors and entrepreneurs while supporting long‑term sustainability goals.
Tourism Strategy 2031 reshapes visitor offerings and management
The report highlights the National Tourism Strategy 2031 as a central pillar of the UAE’s diversification drive, noting its focus on higher value and more diverse products. Authorities are expanding niche pathways such as cultural, nature and rural tourism while using digital platforms to manage visitor flows to key sites and experiences. This digital integration is credited with improving service quality for international visitors and strengthening private‑sector partnerships that deliver tourism infrastructure and services.
Stakeholders said these measures are designed to move beyond arrival numbers toward value‑added tourism that supports local communities and extends visitor stays. The strategy also aims to integrate tourism with other sectors, including transport, hospitality and creative industries, to enhance regional competitiveness.
SMEs and digitalisation fuel business dynamism
The Advisory Board’s findings point to a marked improvement in business environment ease, driven by digital government services, simplified registration and streamlined licensing processes. SMEs account for about 95% of firms in the country and provide more than 85% of private‑sector jobs, with a reported contribution of roughly 63% to GDP, figures cited in the report to underline the sector’s centrality. The authorities’ focus on finance, training and advisory services for small businesses is presented as aligned with international best practices for fostering entrepreneurship.
The report also draws attention to the rapid growth in commercial licenses — approaching 1.33 million registered licenses and a tenfold rise over two decades — as evidence of an increasingly attractive and dynamic private sector. Policy recommendations stress continued investments in skills, regulatory predictability and digital tools to support SME scaling and productivity.
Food economic cluster advances supply‑chain resilience and innovation
The newly launched food economic cluster, established two years prior, is highlighted for integrating investment in logistics, agritech and production to improve food security and competitiveness. The cluster reportedly counts nearly 2,000 food‑sector companies and aims to nurture a new generation of producers and farmers using modern practices and technologies. The Advisory Board frames the cluster as a model for linking infrastructure investment with innovation to ensure reliable food supplies and regional trade leadership.
Analysts in the report recommend continued focus on value chains, cold‑chain logistics and research‑based agriculture to sustain gains and attract private capital into higher‑value food production and processing.
Advisory Board proposes a regional Business and Competitiveness Observatory
One of the report’s concrete proposals is the establishment of a Business and Competitiveness Observatory for the region to consolidate data, best practices and private‑sector representation mechanisms. The proposed observatory would facilitate knowledge exchange among business leaders, trade associations and governments in MENA and OECD member states. Board members expect the platform to support evidence‑based policymaking and strengthen institutionalised dialogue between the public and private sectors.
The report suggests the observatory could help translate the Advisory Board’s policy dialogues into measurable reforms, monitor implementation and provide comparative analysis to guide future regulatory work across sectors.
The MENA‑OECD report frames the UAE’s experience as a pragmatic blueprint for countries seeking to shift from volume‑centric growth to productivity and value‑added development. Continued collaboration between the UAE, international organisations and the private sector is presented as essential to sustaining reform momentum and delivering quality jobs, resilient supply chains and diversified economic outcomes.