The UAE will remain reliant on the hydrocarbons sector, which will be the main engine of growth during the forecast period. That said, the government will continue to pursue its diversification programme through large-scale investment in infrastructure, industry and services. The Abu Dhabi Urban Planning Council awarded tenders worth US$5.7bn to real estate developers at Cityscape, an annual property show, to build 7,500 homes for Emirati families. Other Abu Dhabi government-related entities (GREs) have also announced spending for large-scale real estate projects. The Dubai government, in contrast, will concentrate on paying off its debts and will reduce government spending in 2011-15. Dubai will refocus its efforts on promoting important sectors such as trade and tourism. The Dubai government recently amended the laws governing the Dubai International Financial Centre to improve transparency and improve co-ordination between its main bodies.

The UAE will also aim to recapture foreign investment that took flight when Dubai's debt problems surfaced last year. New laws to stimulate both domestic and foreign investment in the private sector have been at the draft stage for some time and are facing domestic opposition. The foreign business community and the UAE's counterparties in free-trade negotiations have argued that the limit of 49% on foreign ownership of companies in most sectors outside of free zones should be lifted, and some move in this direction is expected. Dubai's stock exchanges have also introduced new rules for initial public offerings aimed at improving liquidity and encouraging more businesses to go public.

Labour policy will continue to focus on increasing the employment of Emiratis in the private sector. The government recently amended the sponsorship system to allow all workers, skilled and unskilled, to leave their employers if contractual arrangements or other employment standards are not met. At the same time, the government also announced that UAE nationals should make up a minimum of 20% of a company's workforce, irrespective of sector. The economy will remain dependent on immigrant labour in the long term.