ABU DHABI, United Arab Emirates (AFP) — The United Arab Emirates announced yesterday the establishment of a special unit at the economy ministry to help lure foreign investors amid an economic slowdown.

The establishment of the foreign direct investment unit was ordered by President Sheikh Khalifa bin Zayed Al-Nahyan in a decree.

The order stipulates that foreign investment firms which secure licences under the decree will be treated like national companies, significantly cutting back red tape.

Last year the UAE attracted more than US$10 billion in foreign direct investment, continuing a trend in recent years of having the largest FDI inflows among all Arab states.

The presidential decree aims to go further still, with the new unit to propose policies to improve the investment environment and attract more FDI.

The measure by the Middle East’s second-largest economy after Saudi Arabia comes amid a slowdown in the oil, tourism and real estate sectors.

In May the UAE announced new incentives to lure foreign investors, granting 100 per cent ownership of companies and a 10-year visa for professionals and investors.

The following month Abu Dhabi, one of the UAE’s seven emirates, announced a 50- billion dirham (US$13.6 billion) stimulus package over the next three years.

Although the UAE has the most diversified economy in the Gulf, it remains highly dependent on oil revenues.

Growth fell to just 0.5 per cent last year, down from 3.0 per cent in 2016 according to the International Monetary Fund, driven by a 2.5 per cent contraction in the oil sector.

Abu Dhabi’s economy contracted by 1.6 per cent last year and was projected to grow by just 0.5 per cent in 2018.

The IMF has forecast growth of 2.9 per cent for the UAE this year, followed by 3.7 per cent for 2019.