In an interview to a local daily the minister said that the Ministry of Economy will invest more than Dh300 million for this purpose to develop business projects pertaining to alternative energy, environment and education to enhance the economy and reduce dependence on trade, oil and basic industries.

The innovation centre will enable young entrepreneurs to innovate, develop their business idea, research, come out with the product and commercialise it.

‘Our objective is to enhance the portfolio of the small and medium enterprises within the UAE, taking into consideration the research aspect that is missing at present’, he told Khaleej Times and added that ‘The problem is students start studying and developing business ideas at university but they do not have the finance to support them’.

‘What we are doing now is closing the circle... so at the end of the day, we can invest and build the businesses that will contribute to the UAE economy,’ he said.

The minister said an innovation centre would eventually be developed in each emirate. The centre will identify key projects in alternative energy, environment, education and IT with the cooperation of the enterprise foundations set up in Dubai, Abu Dhabi, Ras Al Khaimah and Mazdar City.

‘These are certain parts of the economy that we would like to build and enhance especially alternative energy and, accordingly, the foundations have identified certain projects that we will support,’ said Mansouri.

The minister was of the view that traditional components of the economy have to be complemented by innovation for growth.

‘We have unfortunately not concentrated on research and the creation of new products. It has not been a part of our system,though the creativity and innovation ability is there, it needs to be organised,’ he said and added that ‘We are relying on financial institutions and some of the international companies in Skysong have shown interest in the projects.