UAE Vice-President and Dubai ruler Sheikh Mohammed bin Rashid al Maktoum said those eligible would include investors, specialised talents, doctors, engineers and artists.
They and their families would be able to hold dual nationality and it is unlikely that any low-income workers will meet the strict criteria.
Sheikh Mohammed said the aim was to attract those who could "contribute to our development journey".
There is no application procedure; instead individuals would be nominated for citizenship by UAE royals or officials, he said. The UAE cabinet would then decide whether or not to approve them.
The new system would allow specialised experts and foreign investors to establish deeper roots in the country, according to Abu Dhabi-based newspaper The National.
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