The UAE has established itself as a global leader in attracting Foreign Direct Investment (FDI), ranking tenth in the world for incoming FDI flows. With an unprecedented influx of AED 167.6 billion (USD 45.6 billion) in 2024, as reported by the United Nations Conference on Trade and Development (UNCTAD) in its World Investment Report 2025, the nation underscores its role as a premier destination for global investors. This achievement reflects the UAE’s strategic investments across various key sectors, solidifying its position amid a challenging global economic landscape. With these developments, the UAE continues to be a significant player in the global FDI arena, embodying opportunities for businesses and innovative ideas alike.
A Thriving Investment Landscape
According to the UAE’s 2025 report on Foreign Direct Investment, released by the Ministry of Investment, the nation has seen exceptional growth in securing capital across strategic sectors. Despite global economic uncertainties, the UAE enhanced its appeal as a prime investment destination. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, confirmed that the country’s ranking as the tenth largest FDI destination in 2024 demonstrates its status as a land of opportunities. He noted, “In international voting of trust in the UAE economy… the FDI flow for last year reached 167 billion dirhams (45 billion USD), a growth of 48% over the previous year.” Moreover, with 37% of FDI in the region directed towards the UAE, the country stands as the second global leader in new FDI projects, trailing only the United States.
Significant Growth Amid Global Slowdown
While worldwide FDI projects saw a mere 0.8% growth, the UAE achieved a remarkable growth rate of 2.8%, reinforcing its position as a key destination for capital inflows. The announced total for foundational FDI capital reached AED 53.3 billion (USD 14.5 billion) in 2024. As the UAE secures a stronghold in FDI, it is on track to attract AED 1.3 trillion in the next six years, according to Sheikh Mohammed bin Rashid. “Our reality is steadfast, our future is promising, and our focus on our goals is clear. Our message: development is the key to stability, and the economy is our foremost policy,” he added.
Strategic Performance in Key Sectors
The robust performance of the UAE’s key economic sectors has been a critical driver of its relentless focus on FDI attraction. As outlined in the report, software and IT services ranked first in project value at 11.5%, followed closely by business services at 9.7% and renewable energy at 9.3%. The energy sector specifically attracted foundational FDI of AED 4.8 billion (USD 1.3 billion), contributing to the national goal of tripling renewable energy capacity by 2030. Such emphasis on sustainable development underpins the UAE’s strategy in solidifying its position as a global FDI leader.
Future Vision: National Investment Strategy 2031
The National Investment Strategy 2031 aims to double annual FDI inflows to AED 1.3 trillion and reach a cumulative total of AED 2.2 trillion by 2031. This strategy focuses on prioritized sectors like advanced manufacturing, renewable energy, finance, and information technology while emphasizing sustainability and innovation. By fostering a competitive environment for global capital, the UAE reaffirms its commitment to being a leading player in the global FDI landscape.
In conclusion, the UAE’s exemplary performance in attracting Foreign Direct Investment positions it firmly on the global stage, demonstrating resilience in an ever-evolving economic landscape. The nation’s proactive approach, marked by innovative policies and strategic sectoral investments, not only secures its standing as a pivotal investment destination but also paves the way for sustained economic growth in the future.