UAE Elevates Economic Diplomacy Worldwide

The United Arab Emirates (UAE) has elevated its economic diplomacy by launching the annual Economic Diplomacy Report, aiming to monitor the connections between foreign policy decisions and economic growth. The 2024–2025 edition is already appearing for the second time and reflects the country's ambition to align its foreign policy more closely with global economic challenges and opportunities.

Economic Diplomacy's New Benchmark: Economic Diplomacy Index

One of the key innovations is the introduction of the Economic Diplomacy Index, which annually analyzes and evaluates the impact of the UAE's foreign economic activities. The goal of the index is to present the rationale and effectiveness of the country’s international economic policy through objective indicators. The report pays special attention to free trade agreements (CEPA), foreign direct investments, sovereign wealth fund strategies, and the intertwining of humanitarian aid and economic objectives.

Shift in Foreign Policy Focus: Economy at the Core

According to the diplomatic academy that prepared the report, the UAE recognized years ago that foreign policy strategies must transcend traditional geopolitical and humanitarian considerations. Promoting economic cooperation and international investments is crucial for the country’s long-term competitiveness. In this spirit, diplomacy is not just a political tool but also a driver of economic growth.

Openness When Others Restrict

The report highlights that while the number of trade restrictions is rapidly increasing worldwide — from 250 in 2010 to over 3,000 in 2022 — the UAE is moving in the opposite direction. Instead of closing its borders, the country is entering new CEPA agreements, diversifying its economy beyond oil, and encouraging the influx of talent and investments. The goal is not just survival but the exploitation of opportunities in this transforming world.

A New Generation of Diplomats: Economic Focus

The rise of economic diplomacy has also transformed the role of the diplomat. UAE diplomats are now not just political envoys, but economic emissaries whose task is to support the flow of investments into the country and promote the Emirates' economic presence abroad. The academy has adjusted its training programs accordingly: supplementing theoretical education with practical training to prepare future diplomats for adopting an economic mindset.

Investments, Aid, and Sovereign Wealth Funds: A Coordinated Strategy

The report details how humanitarian aid and economic investment become a unified toolkit in the UAE’s foreign policy. With sovereign wealth funds — which are significant players globally — strategic goals include supporting new industries, expanding partnerships, and ensuring long-term financial stability.

Inclusive Foreign Policy Creates Competitive Edge

The report highlights that the UAE’s foreign policy consciously avoids confrontation. The goal is to build balanced, mutually beneficial relationships with every region of the world. This approach provides flexibility amid geopolitical tensions and maximizes trade and diplomatic opportunities.

Change as Opportunity, Not Threat

The report looks at global changes with optimism. Rather than being dominated by fear of global economic reordering, the UAE views challenges as opportunities. In this spirit, diplomatic and economic decision-makers are encouraged: do not fear the unknown, but seek new opportunities in changes.

Summary

The UAE's new economic diplomacy report conveys a clear message: foreign policy and the economy are closely intertwined. Through openness, diversification, and an active investment strategy, the country not only adapts to global changes but also shapes them. The Economic Diplomacy Index is not just an annual statement but a strategic compass for future economic diplomacy.

(The article is based on the UAE Economic Diplomacy Report 2024-2025.)