UAE Secures Global Top 10 Ranking for FDI in 2024, Eyes $354 Billion Inflows by 2031

The United Arab Emirates has emerged as a top-tier global destination for foreign direct investment (FDI), securing the 10th spot worldwide in 2024, according to the UNCTAD World Investment Report 2025. The country attracted AED167.6 billion ($45.6 billion) in capital inflows — a 48 per cent increase compared to the previous year.

This surge in investment highlights the UAE’s resilience and strategic focus, especially in light of regional and global economic headwinds. The country accounted for a remarkable 37 per cent of all FDI in the Middle East, reinforcing its central role in regional economic development.

Among the notable achievements:

• The UAE ranked second globally, following the United States, in the number of newly announced foreign investment projects.

• A total of 1,369 new greenfield projects were launched, valued at AED53.3 billion ($14.5 billion).

• Greenfield project growth stood at 2.8 per cent, outperforming the global average of 0.8 per cent.

The leading sectors receiving investment included:

• Software and IT services (11.5%)

• Business services (9.7%)

• Renewable energy (9.3%)

• Oil, gas, and coal (9%)

• Real estate (7.8%)

The energy sector alone attracted AED4.8 billion ($1.3 billion), aligning with the UAE’s goal to triple its renewable energy capacity by 2030.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, emphasized the strength and clarity of the nation's economic vision, stating that development remains the cornerstone of stability, and that the economy is the country’s primary policy focus.

Policy and Strategic Frameworks

The UAE’s National Investment Strategy 2031 targets cumulative FDI inflows of AED2.2 trillion ($599 billion) by the end of the decade. Key sectors identified include advanced manufacturing, renewable energy, financial services, and information technology.

Mohamed Hassan Alsuwaidi, Minister of Investment, attributed this growth to the country’s consistent regulatory reforms, strategic sector focus, and global investor confidence. The Ministry of Investment continues to enhance a framework that is aligned with national priorities and competitive on the global stage.

The UAE’s investment environment is bolstered by:

• Full foreign ownership of mainland companies

• A globally competitive 9 per cent corporate tax

• Streamlined licensing and arbitration frameworks, including the Dubai International Arbitration Centre

• A broad global network of 120 bilateral investment treaties and 21 economic partnership agreements

Talent and Innovation Appeal

In addition to financial capital, the UAE is gaining ground as a magnet for global talent, ranking 5th worldwide in the Global Talent Competitiveness Index 2024. The country also placed 3rd for attracting AI talent, reflecting its growing role in emerging technologies. Recent developments include a $1.5 billion AI partnership between Microsoft and Abu Dhabi’s G42, underscoring the shift toward digital and knowledge-based sectors.

Real Estate Sector Outlook

The sustained growth in FDI—particularly in technology, energy, and real estate—is expected to exert upward pressure on Dubai’s and the UAE’s property markets. As global firms establish regional hubs and greenfield projects scale, the demand for commercial space and executive housing is likely to increase. Investment in mixed-use developments, innovation zones, and infrastructure-linked residential hubs could also intensify, especially in free zones and central districts favored by international corporations.