UAE launches circular economy and new economy policies to foster innovation, sustainability and economic diversification in future-ready sectors.
ABU DHABI: The United Arab Emirates has strengthened its position as a global innovation and sustainability hub through a series of national policies focused on the circular economy and future-driven economic sectors. These measures are part of the UAE’s broader plan to build a diversified, resilient economy led by innovation and supported by sustainable practices.
Minister of Economy and Tourism, Abdullah bin Touq Al Marri, confirmed the UAE’s transition from an innovation-based economy to a new economy model under the ‘We the UAE 2031’ vision. This strategy aims to establish the UAE as a centre for the new economy within the next decade, emphasising sectors such as artificial intelligence, fintech, digital arts, smart transport, and renewable energy.
As of mid-2025, over 56,000 commercial licences are active in new economy sectors, enabled by updated laws like the Law on Trading by Modern Technological Means, Industrial Property Rights Law, and the Copyright and Commercial Transactions Law.
On the sustainability front, the UAE has implemented 22 circular economy policies focused on waste management, resource efficiency, and green innovation. Initiatives include source-based waste separation, extended producer responsibility, national material databases, and policies to reduce plastic leakage and promote investment in recycling facilities.
The UAE Circular Economy Council is also developing a second wave of policies, covering green infrastructure, water reuse, sustainable product design, and reverse logistics. Other areas include electric vehicle infrastructure, tyre lifecycle regulation, biodiesel use, and support for SMEs in green innovation.
Additionally, work is underway to build a food economic cluster, integrating agriculture, food industries, and agri-tech, which recorded over 40,000 trademarks by mid-2025. These efforts collectively aim to increase the contribution of new and green economy sectors to the UAE’s national GDP.
