UAE investment minister sees new openings for private capital

Bloomberg’s Guy Johnson asks UAE investment minister Mohamed Hassan Alsuwaidi for an assessment of the past 12 months. Alsuwaidi contrasts strong economic performance in 2025 with the regional war that began in February 2026, saying the UAE took steps to support residents, businesses and industry.

Alsuwaidi says the country emerged from the period better than he had expected, while acknowledging lives lost. He points to transport projects, financial-services activity and the arrival of asset managers and banks as signs of continued economic activity.

He also cites ongoing property sales, migration and manufacturing, and says energy infrastructure proved resilient through the disruption. He acknowledges a softer market, which he partly attributes to the war, while saying activity outside AI has also softened globally.

Asked if he was surprised, Alsuwaidi says he expected a larger economic impact when the war began. He says more people than he anticipated stayed, committed resources and continued their projects, which contributed to his positive assessment.

Johnson asks how the UAE can emerge stronger. Alsuwaidi says the government needs to show investors opportunities created by the crisis, including infrastructure projects that build resilience. He identifies AI, logistics and air freight as areas of growth and encourages investors to diversify beyond their existing sectors.

Asked whether sectors previously closed to outside money are opening, Alsuwaidi says energy, industry and infrastructure projects increasingly offer opportunities. He mentions public-private participation, partnerships with governments and privatization of certain government assets.

On whether the process will accelerate, Alsuwaidi says the government was already pursuing faster growth before the crisis, but current circumstances can bring some projects forward. He says the government will prioritize particular areas as needed while continuing to develop the broader economy.

Johnson asks whether the UAE’s six investment priorities have been reordered. Alsuwaidi says AI has moved up from a broader information-and-communications category. His personal interest is robotics and autonomous systems, which he thinks could support resilience and smarter solutions.

Some robotics initiatives remain testbed technologies and will take time, Alsuwaidi says. Energy remains a national priority, while financial services—including attracting family offices and companies—continues to be important. He says investors need legal protection, suitable tax rules, incentives and real estate.

Johnson asks whether all of those ambitions can be funded. Alsuwaidi says he sees opportunities to attract third-party capital in ways the government has not previously used, including by bringing investors into projects rather than funding and operating everything itself.

The main issue, in his view, is the mechanism and the availability of suitable opportunities rather than a lack of willing capital. He expects financing structures to shift, with the pace depending on whether projects fit investors’ needs.

Johnson asks whether spending on resilience and redundancy will divert capital from other uses. Alsuwaidi says existing funding need not stop; the country may need dedicated internal pools for resilience while attracting outside investors to other projects.

Alsuwaidi says some domestic projects should remain government-funded because they are not ready to offer returns that private investors require, and higher charges could affect society. He thinks other projects can offer attractive returns relative to their risks and the country’s credit standing.

Johnson asks whether global competition for capital, including AI investment, will raise financing costs and demand greater discipline. Alsuwaidi says the global cost of capital is increasing: higher bank deposit returns change the benchmark against which investors judge other assets.

Even so, Alsuwaidi says the UAE’s credit rating and competitive pricing should keep appropriately priced capital available. As projects open, he says, they may have to offer investors more appealing terms, potentially increasing project costs.

He argues that a project with a government relationship in Dubai may justify a more moderate return than an investment in a riskier market. He describes sustained high-single-digit or low-double-digit returns with high certainty as attractive, while acknowledging he does not know every investor’s view.

Asked whether the last year changed him as an investor, Alsuwaidi says it has not fundamentally changed his view of sectors or how to invest. He says timing does affect allocation and strategy, and reiterates his preference for diversification.

Johnson asks whether the UAE’s long emphasis on residential development is giving way to a more diversified economy. Alsuwaidi says real estate itself includes more than housing: offices and warehousing have also grown, while incoming residents continue to generate housing demand.

He says shortages remain in some office, warehouse and housing segments. Although the market must adjust and crises can bring corrections, he does not think it is in a bubble and does not see a need for a broad course correction at present.

Speaking to family-office representatives, Alsuwaidi says the UAE aims to protect residents, their families and capital. He urges them to follow safety instructions and says local governments are available to help with problems, connections and other needs.

He emphasizes the range of legal and banking services available and describes the disruption as a short-term setback. Johnson then asks what investors should look for over the coming 12 months.

For Alsuwaidi, success is not simply creating more investment opportunities but maintaining the security promised to people living in the UAE. He expects continued attention to defense and security, while saying this should not be interpreted as a warning of an imminent threat.

He recalls a recent arrival who was struck by seeing people outside late at night. Alsuwaidi says preserving that sense of safety and caring for guests are the outcomes he wants residents to experience.