Image: WAM/ For illustrative purposes
The UAE ranked 10th globally in 2024 for foreign direct investment (FDI) inflows, bringing in a record Dhs167.6bn ($45.6bn), a 48 per cent increase from the previous year, according to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2025.
The country accounted for 37 per cent of all FDI inflows into the region, reinforcing its position as the leading investment destination in the Middle East and North Africa. “Out of every $100 invested in the region, $37 comes to the UAE,” said Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai.
The UAE also ranked second globally, after the US, in the number of newly announced greenfield FDI projects, with 1,369 projects launched in 2024.
Despite a global slowdown in greenfield project growth to 0.8 per cent, the UAE posted a 2.8 per cent increase, with announced greenfield project capital reaching Dhs53.3bn ($14.5bn).
Key sectors fuelling UAE FDI inflows
Key sectors driving this growth include software and IT services (11.5 per cent of total greenfield project value), business services (9.7 per cent), renewable energy (9.3 per cent), coal, oil, and gas (9 per cent), and real estate (7.8 per cent).
The energy sector alone attracted Dhs4.8bn ($1.3bn) in greenfield FDI, aligned with national goals to triple renewable energy production capacity by 2030.
Since 2015, annual FDI inflows into the UAE have grown from Dhs31.6bn ($8.6bn) to Dhs167.6bn, representing a compound annual growth rate of 10.5 per cent.
The cumulative FDI stock reached $270.6bn by the end of 2024.
Mohamed Hassan Alsuwaidi, Minister of Investment, attributed the record inflows to strategic reforms and long-term policy direction. “The UAE’s investment ecosystem has become a global model, thanks to its stability, transparency, trade openness, and ease of doing business,” he said. The Ministry continues to support investor confidence through enhanced legislation, full foreign ownership in mainland companies, a 9 per cent corporate tax rate, and streamlined licensing.
The country also ranks fifth globally for attracting highly skilled talent and third in AI talent, according to recent studies by INSEAD and Stanford University. This talent pool supports ongoing digital transformation, including a $1.5bn AI-focused joint venture between Microsoft and Abu Dhabi-based G42.
The UAE’s National Investment Strategy 2031 aims to double annual FDI inflows by the end of the decade, targeting Dhs2.2tn in cumulative FDI by 2031. Strategic focus areas include advanced manufacturing, clean energy, financial services, and IT.
“Our foundation is strong, our future is promising, and our focus on our goals is crystal clear,” said Sheikh Mohammed. “Our message is simple: development is the key to stability, and the economy is the most important policy.”
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