UNCTAD ranks UAE 10th globally for FDI inflows in 2024, with record AED 167.6 billion secured
The United Arab Emirates has emerged as one of the world’s top ten destinations for foreign direct investment (FDI), securing a record AED 167.6 billion (USD 45.6 billion) in inflows in 2024, according to the newly released World Investment Report 2025 by the United Nations Conference on Trade and Development (UNCTAD).
This historic achievement marks a 48% year-on-year growth and positions the UAE tenth globally in FDI inflows—a first for the country and a clear reflection of its growing stature as a global business and investment hub amid mounting global economic uncertainties.
Issued by the Ministry of Investment, the UAE Foreign Direct Investment Report 2025 credited this success to proactive government policies, strategic sectoral focus, and an investor-friendly ecosystem that continues to outperform regional and international peers. The UAE accounted for 37% of all FDI inflows into the Middle East, with more than a third of every dollar invested in the region landing in the Emirates.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai, lauded the achievement as a “global vote of confidence” in the UAE’s economic model. He attributed this success to the strategic vision of the UAE’s President, His Highness Sheikh Mohamed bin Zayed Al Nahyan.
“In an international vote of confidence in the UAE’s economy, the latest report by UNCTAD revealed that the UAE attracted AED 167 billion in foreign direct investment over the past year,” Sheikh Mohammed said. “Our next goal is to attract AED 1.3 trillion in foreign direct investment over the next six years, God willing.”
He underlined the UAE’s core policy message: “Development is the key to stability, and the economy is the most important policy.”
Greenfield Investments Show Resilience
Despite a global downturn in greenfield project growth, which stagnated at just 0.8%, the UAE recorded an impressive 2.8% increase. In total, 1,369 greenfield FDI projects were announced in the country last year, worth AED 53.3 billion (USD 14.5 billion), placing the UAE second globally—just behind the United States.
Leading sectors attracting these greenfield investments included software and IT services (11.5%), business services (9.7%), renewable energy (9.3%), oil and gas (9%), and real estate (7.8%). The energy sector alone drew in AED 4.8 billion (USD 1.3 billion), aligning with the UAE’s ambition to triple renewable energy capacity by 2030.
Investment Minister Mohamed Hassan Alsuwaidi described the UAE’s record-breaking FDI performance as a product of visionary leadership, strong policymaking, and consistent execution. “The UAE’s investment ecosystem has become a global model, thanks to its stability, transparency, trade openness, and ease of doing business,” he noted.
He emphasised that the Ministry of Investment remains focused on developing regulatory frameworks that align with national priorities and provide long-term incentives for investors. The National Investment Strategy 2031, launched to double annual FDI inflows and achieve AED 2.2 trillion in cumulative FDI by 2031, is central to this vision.
Investor Confidence at All-Time High
The UAE’s investor-friendly reforms—such as full foreign ownership in mainland companies, a competitive 9% corporate tax, and streamlined licensing procedures—have significantly boosted investor confidence. Legal protections have also been reinforced through institutions like the Dubai International Arbitration Centre, creating an environment of transparency and trust.
This has positioned the UAE not only as a capital magnet but also as a talent magnet. The country ranks fifth globally in attracting highly skilled talent (INSEAD’s Global Talent Competitiveness Index 2024) and third in attracting AI talent (Stanford AI Index 2024), enhancing its profile as a future-ready economy.
The UAE’s growing web of international partnerships further strengthens its investment appeal. With 21 Comprehensive Economic Partnership Agreements (CEPAs) and 120 bilateral investment treaties, the Emirates has built an extensive global framework to support cross-border capital movement.
Among standout deals is the USD 1.5 billion joint venture between Microsoft and Abu Dhabi’s G42, which aims to advance AI capabilities and digital innovation, anchoring the UAE’s transition to a knowledge-based economy.
