UAE local investment hailed as national bedrock by envoy Badr Jafar
Badr Jafar urges UAE local investment as the nation’s bedrock, citing $45.6bn FDI in 2025 and noting family firms and sovereign funds now sustain growth.
The UAE’s Special Envoy to the Minister of Foreign Affairs for Business and Philanthropy and CEO of Hilal Projects, Badr Jafar, told delegates at the “Make it in the UAE 2026” exhibition that UAE local investment represents a deep-seated national conviction. He contrasted this with foreign direct investment, describing FDI as an external vote of confidence while saying domestic capital is rooted in national certainty. His remarks placed UAE local investment at the centre of the country’s strategy for long-term resilience and economic depth.
Local investment versus foreign confidence
Badr Jafar framed the difference between foreign and domestic capital directly in his keynote remarks, saying foreign investment is inherently variable but local investment is steadfast. He argued that while the UAE must continue to attract global capital, policy and private sector efforts should prioritise strengthening domestic investment channels. This balance, he said, underpins the country’s ability to withstand external shocks and ensures sustained job creation for Emiratis.
Recent investment performance and FDI figures
In his address, Jafar pointed to the UAE’s investment performance last year and cited foreign direct investment of $45.6 billion as evidence of continued international confidence. He presented the figure to highlight the scale of inbound capital flows while urging policymakers to view that FDI as complementary to a stronger domestic investment base. The envoy framed the $45.6 billion as a milestone that should inform, but not replace, efforts to deepen UAE local investment.
Family businesses’ role in GDP and employment
Jafar underscored the central role of family-owned enterprises in the national economy, noting they account for more than 60 percent of GDP and roughly 80 percent of the national workforce, according to his remarks. He called on family firms to amplify their contribution by expanding scale and reach, especially into sectors that support national strategic priorities. The envoy encouraged these companies to leverage their long-term orientation and community ties to drive domestic investment that delivers broad social and economic returns.
Government as the enabling arm
The keynote reiterated that government should act as an enabling and guiding arm rather than a dominant market actor. Jafar said public policy must create the regulatory and institutional frameworks that make UAE local investment attractive, predictable and scalable. He recommended targeted reforms and incentives that reduce barriers to domestic capital deployment and enhance public–private partnership models across strategic industries.
Sovereign funds and financial depth
Highlighting the stabilising role of sovereign wealth funds, Jafar described them as a source of depth and sustainability for the national economy. He said these funds, together with family-owned capital and domestic investors, form a complementary ecosystem that can underpin long-term projects and mitigate cyclical volatility. His remarks urged coordinated deployment of sovereign and private capital to finance industrial expansion, technology adoption and job-creating ventures within the UAE.
Industry reaction at “Make it in the UAE 2026”
Delegates and exhibitors at the “Make it in the UAE 2026” expo responded by signalling greater interest in joint initiatives that pair international partners with domestic investors. Private sector representatives told organisers they welcome policy clarity and incentives that would encourage local reinvestment of profits and broaden participation in strategic sectors. Several firms suggested new financing tools and capacity-building programmes to help family businesses scale while preserving their national focus.
The envoy’s remarks come as the UAE seeks to balance continued openness to global capital with a strategic emphasis on strengthening its domestic investor base. His call for a cooperative ecosystem—where government sets direction, family businesses expand impact, and sovereign funds provide long-term capital—was framed as a practical roadmap to sustain growth. As policymakers and the private sector digest those proposals, attention will turn to concrete measures that translate the vision for UAE local investment into expanded projects, jobs and industrial capability.
