Image: WAM/ For illustrative purposes
The United Arab Emirates (UAE) has secured the 10th position globally for foreign direct investment (FDI) inflows in 2024, achieving a record of Dhs167.6 billion ($45.6 billion). This marks a significant 48% rise compared to the previous year, as reported by the United Nations Conference on Trade and Development (UNCTAD) in its World Investment Report 2025.
Representing 37% of the FDI inflows into the Middle East and North Africa, the UAE continues to solidify its status as the premier investment hub in the region. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, stated, “For every $100 invested in the region, $37 comes to the UAE.”
In terms of newly launched greenfield FDI projects, the UAE stands out in the second place globally, following the United States, with 1,369 projects initiated in 2024.
Although there was a global deceleration in the growth of greenfield projects, with a mere 0.8% increase, the UAE experienced a growth of 2.8%, with the total capital for greenfield projects reaching Dhs53.3 billion ($14.5 billion).
Primary Industries Driving FDI in the UAE
Significant sectors contributing to this remarkable growth include software and IT services (11.5% of total greenfield project value), business services (9.7%), renewable energy (9.3%), coal, oil, and gas (9%), and real estate (7.8%).
Particularly, the energy sector drew Dhs4.8 billion ($1.3 billion) in greenfield FDI, reinforcing national ambitions to enhance renewable energy capacity threefold by 2030.
Since 2015, FDI inflows to the UAE have surged from Dhs31.6 billion ($8.6 billion) to Dhs167.6 billion, reflecting a compound annual growth rate of 10.5%.
By the end of 2024, the total FDI stock reached $270.6 billion.
Mohamed Hassan Alsuwaidi, the Minister of Investment, credited the remarkable inflows to strategic reforms and a forward-looking policy framework. He noted, “The UAE’s investment ecosystem has set a global standard due to its stability, transparency, openness to trade, and business-friendly environment.” The Ministry remains committed to enhancing investor confidence through improved legislation, full foreign ownership of companies in major markets, a 9% corporate tax rate, and simplified licensing processes.
Additionally, recent assessments by INSEAD and Stanford University place the UAE fifth worldwide for attracting skilled talent and third for AI talent. This talent pool propels the country’s ongoing digital transformation, exemplified by a $1.5 billion AI-focused partnership between Microsoft and G42, a company based in Abu Dhabi.
The UAE’s National Investment Strategy 2031 seeks to double annual FDI inflows by the decade’s end, aiming for a cumulative total of Dhs2.2 trillion by 2031. Key focus areas include advanced manufacturing, clean energy, financial services, and IT.
Sheikh Mohammed remarked, “Our foundation is strong, our future is bright, and our objectives are clearly defined. Our straightforward message is that development is essential for stability, and the economy remains our top priority.”