Image: WAM/ For illustrative purposes
The United Arab Emirates secured the 10th position globally for foreign direct investment (FDI) inflows in 2024, attracting a remarkable Dhs167.6 billion ($45.6 billion), which marks a 48% rise compared to the previous year, as reported by the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2025.
The UAE represented 37% of all FDI flows to the region, solidifying its status as the premier investment hub in the Middle East and North Africa. “For every $100 invested in the region, $37 is directed to the UAE,” stated Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai.
In terms of newly initiated greenfield FDI projects, the UAE ranked second worldwide after the United States, with 1,369 projects introduced in 2024.
Even though there was a global deceleration in greenfield project growth to 0.8%, the UAE experienced a 2.8% growth, with announced capital for these projects reaching Dhs53.3 billion ($14.5 billion).
Major sectors driving FDI growth in the UAE
The main sectors contributing to this boom include software and IT services (11.5% of total greenfield investment value), business services (9.7%), renewable energy (9.3%), coal, oil, and gas (9%), and real estate (7.8%).
The energy sector alone drew Dhs4.8 billion ($1.3 billion) in greenfield FDI, aligned with national objectives to triple renewable energy production capabilities by 2030.
From 2015 onward, annual FDI inflows into the UAE have escalated from Dhs31.6 billion ($8.6 billion) to Dhs167.6 billion, reflecting a compound annual growth rate of 10.5%.
The total FDI stock was reported at $270.6 billion by the close of 2024.
Mohamed Hassan Alsuwaidi, Minister of Investment, credited the exceptional FDI inflows to intentional reforms and long-range policy initiatives. “The UAE’s investment landscape has evolved into a global benchmark, driven by its stability, transparency, trade openness, and business-friendly environment,” he remarked. The Ministry persistently fosters investor confidence by enhancing regulations, enabling full foreign ownership of mainland enterprises, maintaining a 9% corporate tax rate, and simplifying licensing processes.
Additionally, the UAE ranks fifth globally in attracting skilled talent and third in artificial intelligence talent, according to recent assessments by INSEAD and Stanford University. This talent reservoir is pivotal for advancing digital innovation, exemplified by a $1.5 billion AI-centric joint venture involving Microsoft and Abu Dhabi-based G42.
The UAE’s National Investment Strategy 2031 aims to double annual FDI inflows by the decade’s end, aspiring for a cumulative Dhs2.2 trillion in FDI by 2031. Key focus areas include advanced manufacturing, clean energy, financial services, and IT.
“Our foundation is strong, our future is promising, and our commitment to our goals is crystal clear,” remarked Sheikh Mohammed. “Our message is straightforward: development is essential for stability, and the economy is our foremost priority.”