Image: WAM/ For illustrative purposes
The United Arab Emirates (UAE) achieved the 10th position worldwide in 2024 for foreign direct investment (FDI) inflows, with a remarkable total of Dhs167.6 billion ($45.6 billion), marking a 48% increase from the previous year, as reported in the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2025.
Comprising 37% of the region’s total FDI inflows, the UAE solidifies 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.
Furthermore, the UAE secured the second spot globally for the number of newly announced greenfield FDI projects, with 1,369 projects initiated in 2024, trailing only behind the United States.
While the global growth rate for greenfield projects saw a decline to 0.8%, the UAE experienced a 2.8% increase, with the total capital announced for greenfield projects reaching Dhs53.3 billion ($14.5 billion).
Core sectors driving FDI growth in the UAE
Several key sectors are propelling this growth, including:
- Software and IT services (11.5% of overall greenfield project value)
- Business services (9.7%)
- Renewable energy (9.3%)
- Coal, oil, and gas (9%)
- Real estate (7.8%)
The energy sector attracted Dhs4.8 billion ($1.3 billion) in greenfield FDI, aligning with national objectives to triple renewable energy output by 2030.
Since 2015, annual FDI inflows into 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 cumulative FDI stock reached $270.6 billion.
According to Mohamed Hassan Alsuwaidi, Minister of Investment, these record inflows are attributed to strategic reforms and a supportive policy framework. “The UAE’s investment landscape has emerged as a model globally, characterized by stability, transparency, trade openness, and a favorable business environment,” he noted. The Ministry is dedicated to bolstering investor confidence through improved legislation, an allowance for full foreign ownership in mainland enterprises, a 9% corporate tax rate, and simplified licensing procedures.
Additionally, recent research by INSEAD and Stanford University indicates that the UAE ranks fifth globally in attracting highly skilled professionals and third in AI talent. This skilled workforce plays a crucial role in the ongoing digital transformation efforts, which include a $1.5 billion AI-focused joint venture between Microsoft and Abu Dhabi-based G42.
The UAE’s National Investment Strategy 2031 aspires to double annual FDI inflows by the decade’s end, aiming for Dhs2.2 trillion in cumulative FDI by 2031. Focus areas include advanced manufacturing, clean energy, financial services, and information technology.
Sheikh Mohammed emphasized, “Our foundations are robust, our future is bright, and our focus remains unwavering.” He added, “The message is clear: development is essential for stability, and a thriving economy is our primary agenda.”