Sheikh Mohammed: Our Reality is Strong and Our Future is Promising, with a Clear Focus on Our Goals
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has asserted that the UAE, under the leadership of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, is a land of opportunities and an ideal destination for businesses and innovative ideas.
This statement was made as the UAE ranked tenth globally as the largest recipient of foreign direct investment (FDI), achieving an unprecedented level of inbound FDI valued at AED 167.6 billion (USD 45.6 billion) in 2024, according to the 2025 World Investment Report by the United Nations Conference on Trade and Development (UNCTAD).
Archive Image
His Highness:
UNCTAD Report is a Vote of Confidence in the UAE’s Economy
Our Message: Development is Key to Stability, and Economy is Our Top Policy
We Have One Team Committed to Leadership’s Directives and a Nation Rallying Behind It
The UAE Ranks Second Globally in New Foreign Direct Investment Projects after the United States
Our New Goal is to Attract AED 1.3 Trillion in Foreign Direct Investment Over the Next 6 Years
His Highness Sheikh Mohammed bin Rashid Al Maktoum highlighted that the UAE’s position among the top ten global destinations for FDI in 2024 reflects its nature as a land of opportunities and the premier choice for businesses and innovative ideas.
He further stated, “This ranking is a testament to the international trust in the UAE’s economy. According to the UNCTAD report, foreign direct investment inflows to the UAE reached AED 167 billion (USD 45 billion), a remarkable growth of 48% compared to the previous year.”
A Promising Future
He added that the UAE accounted for 37% of the total foreign investments flowing into the region. (For every USD 100 in FDI into the region, USD 37 comes to the UAE).
Additionally, the UAE came second globally in the number of new FDI projects after the United States. His Highness reiterated, “Our new target is to attract FDI inflows amounting to AED 1.3 trillion over the next six years, God willing.”
Sheikh Mohammed bin Rashid emphasized, “Our reality is solid, our future is promising, and our focus on our objectives is clear. Our message is that development is key to stability, and the economy is our primary policy.”
Trust in the Nation’s Economy
In a statement on the “X” platform, he remarked, “The ranking, as detailed in the UNCTAD report, shows the trust placed in the UAE’s economy, with FDI inflows last year amounting to AED 167 billion (USD 45 billion), growing by 48% from the previous year.”
Moreover, he mentioned, “The UAE captures 37% of total foreign investment inflows to the region, and it ranks second globally for new FDI projects after the United States.”
He continued, “Our aim is to attract FDI inflows totaling AED 1.3 trillion in the coming six years, led by a clear development agenda laid out by Mohammed bin Zayed. We have a dedicated team committed to the leadership’s directives, and our people stand united behind their leadership, which is the secret of our success. Our message from the UAE is clear: Development is the key to stability, and the economy is our top priority.”
Leading the Global Scene
The 2025 FDI report from the UAE Ministry of Investment highlighted the nation’s exceptional performance in attracting capital across various strategic sectors, bolstering its status as a prominent global investment hub, despite unstable global conditions.
While global FDI project growth has slowed to 0.8%, the UAE achieved a notable growth of 2.8%, reinforcing its role as a major destination for investments, with total announced FDI reaching AED 53.3 billion (USD 14.5 billion) in 2024.
Key Sectors
The UAE is ranked second globally in attracting foundational FDI projects, with 1,369 new projects announced in 2024.
The Ministry of Investment is at the forefront of these efforts, enabling investments in key sectors while ensuring a competitive environment for global capital and acting as a reliable partner for global investors.
The ministry continues to work closely with federal and local government entities, investment promotion agencies, private sector companies, and international partners to develop innovative policies that enhance the value of investments and open new long-term economic growth avenues.
FDI inflows increased from AED 31.6 billion (USD 8.6 billion) in 2015 to AED 167.6 billion (USD 45.6 billion) in 2024, with cumulative FDI reaching AED 994.9 billion (USD 270.6 billion), reflecting a compounded annual growth rate of 10.5% from 2015 to 2024.
Investment Flows
His Excellency Mohammed Hassan Al Suwaidi, Minister of Investment, remarked, “This unprecedented level of FDI inflows to the UAE is a reflection of the strategic choices made by our wise leadership and their long-term vision to establish the UAE as a leading global investment destination.”
The Ministry of Investment is dedicated to developing a comprehensive regulatory and legislative framework that aligns with our national priorities, meets investor needs, and offers a competitive business environment that attracts global capital.
He added, “The investment ecosystem in the UAE has become a global model thanks to its stability, transparency, and open trade practices, as well as the ease of doing business.”
Through the National Investment Strategy 2031, we continue to set ambitious goals to strengthen the UAE’s position as a leading global destination for FDI, providing a clear pathway for sustainable growth, multiplying investment opportunities, and diversifying priority sectors, thereby opening new horizons for global companies seeking innovation and market expansion in the future.
Record Figures
For his part, His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, indicated that the record FDI flows into the UAE, as documented in the UNCTAD report, showcase the remarkable advancements within the UAE’s economy, driven by our leadership’s visionary approach towards greater openness with the world through establishing strategic developmental partnerships with key players on the global economic map.
The annual increase in incoming foreign investments by 48% to AED 167 billion in 2024 underscores the confidence major global economies and key international players have in the UAE as a trusted investment and trade partner, possessing one of the best business environments in the world. This is also reflected in the UAE alone accounting for over one-third of FDI inflows to the entire region, as well as its position in new FDI projects where it maintained second place following the United States.
Moreover, he stated that the continued achievement of significant increases in FDI inflows reflects the harmonious implementation of strategic plans by the UAE, enhancing its openness to global trade and investment through a program of comprehensive economic partnership agreements, building knowledge and innovation-based sectors of the future, attracting and retaining top companies and talents worldwide, and continuously improving the business environment in the country to be more conducive to growth and expansion, thus solidifying its status year after year as a global business hub and a preferred international destination for innovative ideas and seeking capital opportunities in the UAE.
Strong Performance
The robust performance of key economic sectors has significantly contributed to the upward trend in announced foundational FDI projects within the country, with software and IT services leading in project value (11.5%), followed by business services (9.7%), renewable energy (9.3%), coal, oil, and gas (9%), and real estate (7.8%).
The energy sector attracted foundational FDI valued at AED 4.8 billion (USD 1.3 billion), supporting the national goal of tripling renewable energy production capacity by 2030.
A Destination for Capital
The supportive investment environment policies and strong strategic partnerships have solidified the UAE’s position as a primary destination for foreign capital in the region, with the UAE accounting for approximately 37% of inbound FDI in the region in 2024.
The nation continues to attract the best global talents driven by a range of policies supporting its investment agenda, including allowing foreigners full ownership of companies in the mainland, establishing a competitive corporate tax rate of 9%, streamlining licensing procedures, and enhancing legal protection.
These policies have fostered a conducive business environment for investment, while robust legal frameworks, such as international arbitration centers like the Dubai International Arbitration Centre, have reinforced investor confidence and protected their interests.
The UAE ranks fifth globally in attracting high-skilled talents (according to the Global Talent Ranking 2024 by the International Institute for Management Development), and third in attracting artificial intelligence talents (according to the AI Index 2024 from Stanford University), further establishing its position as a key destination for professionals, entrepreneurs, and innovators.
Global partnerships have also been a major driver of investment attraction to the UAE, with 21 comprehensive economic partnership agreements and 120 bilateral investment treaties clearly bolstering the investment landscape.
This momentum is supported by the UAE’s significant investments in digital transformation, exemplified by the AED 5.5 billion (USD 1.5 billion) joint venture between Microsoft and Abu Dhabi’s G42 to develop the country’s AI capabilities and set new standards for innovation.
Strategic Plan
The National Investment Strategy 2031 aims to double annual FDI inflows by 2031, reaching AED 1.3 trillion in cumulative foreign direct investment from 2025 to 2031 and increasing the FDI stock to AED 2.2 trillion.
The strategy focuses on several priority sectors, including advanced industries, renewable energy, financial services, and information technology, with an emphasis on sustainability and innovation.
The initiatives under this strategy aim to firmly position the UAE as a global leader in economic diversification and technological advancement.
The United Nations Conference on Trade and Development (UNCTAD) has reported a global decline in FDI value by 11%, marking a downturn for the second consecutive year.
In its annual world FDI report 2025 released recently in Geneva, UNCTAD noted a global increase in FDI of 4% in 2024, reaching USD 1.5 trillion. However, this increment is attributed, among other factors, to fluctuations in financial flows across many European economies, which often serve as channels for investment.
The findings highlight the urgent need to reshape investment and financing systems to support inclusive and sustainable growth.
This year’s report, ahead of the fourth international conference on financing for development, focuses on the growing gap between capital flows and development needs, indicating a sharp decrease in investment in developed economies, particularly in Europe, while financial flows in developing nations appeared relatively stable.
Rebecca Greenspan, Secretary-General of UNCTAD, noted that dispersion and volatility distort investment flows, indicating that the investment landscape in 2024 was affected by geopolitical tensions, trade fragmentation, and intensified competition in industrial policies.
She explained that these dynamics, alongside rising financial risks and uncertainties, are redrawing global investment maps and undermining long-term investor confidence.
The report highlighted a 22% drop in FDI directed towards developed economies, including a 58% decline in Europe, while North America bucked this trend with a 23% increase, led by the United States.
The report stated that regional trends varied, with Africa seeing a 75% rise in FDI, driven by a significant project in Egypt.
In addition, the report mentioned that Asia remained the top recipient of FDI; despite a slight decline of 3%, Southeast Asia recorded a 10% increase, reaching USD 225 billion, the second-highest recorded level, while Latin America and the Caribbean experienced a 12% decrease in total flows despite rising project announcements in key markets like Argentina, Brazil, and Mexico. Geneva – WAM