DUBAI, July 3 Reuters The United Arab Emirates UAE will set up a new federal ministry of investment to develop the Gulf state39;s investment strategy both globally and domestically as it contends with growing economic competition from neighbours.

The Gulf states, largely dependent on hydrocarbons for revenue, all have plans underway to diversify their economies and sources of income.

The UAE is considered among the most advanced, having developed sectors such as financial services and tourism ahead of its neighbours, as well as implementing key social and business reforms to attract foreign investment.

Sheikh Mohammed bin Rashid alMaktoum, UAE prime minister and ruler of Dubai the Gulf state39;s tourism and commercial hub announced the plans on Twitter after a cabinet meeting, adding that Mohammed Hassan Al Suwaidi will become the investment minister.

No further details were given.

The ministry39;s aims would include stimulating the investment environment in the UAE and to make the UAE39;s legislation and procedures more competitive to attract global investment, Sheikh Mohammed said.

The UAE will also set up a Financial Stability Council to monitor risks, and deal with financial crises to further its objectives of becoming a major global financial centre.

Earlier this year, Sheikh Mohammed launched a 10year economic plan known as D33 which aims to double the economy39;s size and make Dubai one of the top four global financial centres in a decade.

Last year,…