The Influence of Policy Changes on Foreign Direct Investment and Sectoral Diversification

Abstract

Finally, this dissertation has shown that the UAE’s strategic application of FDI based on significant infrastructure and regulatory reforms has contributed to economic diversification. Still, the remaining challenges make clear that diversification is a continued process that necessitates intentional actions to rationalize regulation, build local innovation ecosystems, and drive socio-economic equity. The UAE provides a case study of the promise and complexity of transforming an economy historically reliant on resource rents into a modern, interdependent one. The UAE’s ability to sustain not only a commitment to innovation and strategic adaptability, but also inclusive development in the future, will continue to make it a compelling case study for how FDI can evolve into a force for actual and sustained prosperity and resilience in the long-term.