UAE cements its position as global destination for attracting FDI with total inflows of Dh167.6 billion in 2024
19 June 2025 20:35
DUBAI (WAM) The UAE ranked 10th globally as a leading destination for inbound foreign direct investment (FDI) in 2024, achieving an unprecedented Dh 167.6 billion ($45.6 billion in FDI inflows, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025.The UAE Foreign Direct Investment Report 2025, issued by the Ministry of Investment, highlights the country's exceptional performance and unmatched success in attracting capital across strategic sectors, reinforcing its status as a premier global investment destination despite an unstable global landscape.His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai, declared that under the visionary leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, the UAE's tenth global ranking in FDI inflows for 2024 confirms its status as a land of boundless opportunities and the premier destination for innovative businesses and bold ideas.His Highness Sheikh Mohammed bin Rashid Al Maktoum said: 'In an international vote of confidence in the UAE's economy, the latest report by the United Nations Conference on Trade and Development (UNCTAD) revealed that the UAE attracted Dh 167 billion ($45 billion) in foreign direct investment over the past year, marking a 48% growth compared to the previous year.'His Highness added: 'The UAE accounted for 37% of all foreign direct investment inflows into the region. Out of every $100 invested in the region, $37 comes to the UAE. The country also ranked second globally, after the United States, in the number of newly announced foreign direct investment projects. Our next goal is to attract Dh 1.3 trillion in foreign direct investment over the next six years, God willing.'His Highness continued: 'Our foundation is strong, our future is promising, and our focus on our goals is crystal clear. Our message is simple: development is the key to stability, and the economy is the most important policy.'Despite a global slowdown in greenfield FDI project growth to 0.8%, the UAE achieved a remarkable 2.8% growth, solidifying its position as a key destination for investment flows. Total capital for announced greenfield FDI projects in 2024 reached Dh53.3 billion ($ 14.5 billion).The UAE ranked second globally, after the United States, in attracting greenfield FDI projects, with 1,369 new projects announced in 2024.The Ministry of Investment leads these efforts by enabling investment in key sectors, providing a flexible and competitive environment for global capital, and acting as a trusted partner for international investors. The ministry continues close collaboration with federal and local government entities, investment promotion agencies, private sector companies, and international partners to develop innovative policies, enhance the UAE's investment value proposition, and unlock new avenues for long-term economic growth.Annual FDI inflows rose from Dh31.6 billion ($8.6 billion) in 2015 to Dh167.6 billion ($45.6 billion) in 2024, with cumulative FDI stock reaching $270.6 billion, reflecting a 10.5% compound annual growth rate from 2015 to 2024.Mohamed Hassan Alsuwaidi, Minister of Investment, stated: 'Recording this unprecedented level of FDI inflows to the UAE is an achievement that reflects the strategic choices made by our wise leadership and its long-term vision to establish the UAE as a leading global investment destination. The Ministry of Investment is committed to developing a comprehensive regulatory and legislative framework aligned with our national priorities, meeting investors' needs, and providing a competitive business environment that attracts global capital.'He added: 'The UAE's investment ecosystem has become a global model, thanks to its stability, transparency, trade openness, and ease of doing business. Through the National Investment Strategy 2031, we continue to set ambitious goals to cement the UAE's position as a leading global FDI destination. We provide a clear pathway to drive sustainable growth, double investment opportunities, diversify priority sectors, and open new horizons for global companies seeking innovation and expansion in future markets.'The strong performance of key economic sectors boosted the upward trajectory of announced greenfield FDI projects in the UAE. Software and IT services led announced FDI greenfield project values (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 Dh4.8 billion $1.3 billion in greenfield FDI, advancing the UAE's national goal to triple renewable energy production capacity by 2030.The UAE's supportive investment policies and robust strategic partnerships have solidified its position as a primary destination for foreign capital in the region, capturing approximately 37% of the region's FDI inflows in 2024.The UAE continues to attract top global talent, driven by policies supporting its investment strategy, including full foreign ownership in mainland companies, a competitive 9% corporate tax rate, streamlined licensing procedures, and enhanced legal protections.These policies have fostered a favourable investment climate, while strong legal frameworks, such as the Dubai International Arbitration Centre, have bolstered investor confidence and safeguarded their interests.The UAE ranks fifth globally in attracting highly skilled talent (per the 2024 Global Talent Competitiveness Index by INSEAD) and third in attracting AI talent (per Stanford University's 2024 AI Index), reinforcing its status as a leading hub for professionals, entrepreneurs, and innovators.Global partnerships are another key driver of investment attraction, with 21 Comprehensive Economic Partnership Agreements and 120 bilateral investment treaties supporting the investment landscape.This momentum is underpinned by the UAE's significant investments in digital transformation, exemplified by the $ 1.5 billion joint venture between Microsoft and Abu Dhabi-based G42 to advance AI capabilities and set new standards for innovation.The National Investment Strategy 2031 aims to double annual FDI inflows by 2031, targeting Dh 2.2 trillion cumulative FDI by 2031, as per the National Investment Strategy (NIS).
The strategy focuses on priority sectors such as advanced manufacturing, renewable energy, financial services, and IT, emphasising sustainability and innovation. Initiatives under this strategy aim to cement the UAE's global leadership in economic diversification and technological advancement.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
an hour ago
- Al Etihad
UAE President sends written message to Canadian Prime Minister
20 June 2025 10:35 OTTAWA (WAM)President His Highness Sheikh Mohamed bin Zayed Al Nahyan has sent a written message to Mark Carney, Prime Minister of Canada, focusing on bilateral relations between the UAE and Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs, delivered the message during his meeting with the Canadian Prime Minister at the outset of his working visit to the Canadian capital, meeting explored avenues to strengthen cooperation between the UAE and Canada, with both sides discussing ways to deepen bilateral ties and expand prospects for joint collaboration across various sectors to serve mutual interests and enhance the prosperity and well-being of their Highness Sheikh Abdullah and the Canadian Prime Minister also explored opportunities for collaboration across various sectors, including the economic and commercial fields, energy, artificial intelligence and Highness Sheikh Abdullah stressed that the UAE and Canada share deep-rooted ties and a growing partnership founded on productive and constructive collaboration, aligned with the shared aspirations of both nations and their efforts to achieve sustainable also touched on regional and international developments, with an exchange of views on key topics. Sheikh Abdullah stressed the importance of bolstering joint efforts to support global peace and security. The meeting was attended by Reem bint Ebrahim Al Hashimy, Minister of State for International Cooperation; Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology; Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Sultan Al Mansoori, Envoy of the Minister of Foreign Affairs; Saeed Mubarak Al Hajeri, Assistant Foreign Minister for Economic and Trade Affairs; and Abdulrahman Ali Al Neyadi, UAE Ambassador to Canada.
Hi Dubai
2 hours ago
- Hi Dubai
MBRSG Launches UAE Economic Diplomacy Report at Public Administration Forum
The Mohammed Bin Rashid School of Government (MBRSG) has unveiled the UAE Economic Diplomacy Report 2024–2025 at its fifth Public Administration Forum, spotlighting the country's growing global influence through data-driven policy, trade, and international collaboration. Held at the Dubai World Trade Centre, the forum gathered diplomats, economists, and policymakers to explore the UAE's evolving economic diplomacy strategies. This year's edition, themed 'Strategic Horizons,' marked the report's official launch, jointly developed by MBRSG and the Anwar Gargash Diplomatic Academy (AGDA), with input from global and local experts. Dr. Ali bin Sebaa Al Marri, Executive President of MBRSG, described the forum as a platform for shaping a forward-thinking approach to economic diplomacy. 'The report showcases the UAE's growing global presence through indicators on investment, sovereign wealth funds and economic partnerships,' he said. The report details key components of the UAE's economic outreach, including its 24 Comprehensive Economic Partnership Agreements (16 already in effect), rising foreign direct investment, and the role of sovereign wealth funds like ADIA and Mubadala. It also examines the integration of digital economy tools and climate diplomacy into foreign policy frameworks. Notable figures show FDI inflows reaching US$30.7 billion in 2023, AED835 billion in non-oil trade in Q1 2025, and non-oil exports making up 21% of total trade. The UAE's GDP hit AED1.77 trillion in 2024, with 75.5% coming from the non-oil sector. AGDA's Deputy Director-General Dr. Mohammed Ibrahim Al Dhaheri emphasized the broader vision behind these numbers, stating, 'Economic choices today form part of a broader national narrative.' The forum featured discussions on CEPAs, foreign aid, sovereign wealth, and policy integration, concluding with a collaborative dialogue session aimed at strengthening cross-sector partnerships for future-ready economic diplomacy. News Source: Emirates News Agency
Hi Dubai
2 hours ago
- Hi Dubai
Global FDI Rose 4% in 2024 to $1.5 Trillion: UNCTAD
Global foreign direct investment (FDI) dropped 11 percent in 2024, marking the second year of decline and underscoring growing concerns over volatility and fragmentation in international capital flows, according to the United Nations Conference on Trade and Development (UNCTAD). Released Thursday in Geneva, UNCTAD's World Investment Report 2025 noted that despite a 4 percent rise in global FDI to $1.5 trillion last year, the increase was driven largely by transient financial flows through European investment hubs — masking underlying weaknesses in long-term investment trends. The report warned that geopolitical tensions, trade fragmentation, and intensifying industrial policy competition are reshaping the global investment landscape, eroding investor confidence and deepening disparities between developed and developing markets. Developed economies saw FDI fall sharply by 22 percent, with Europe experiencing a dramatic 58 percent plunge. North America stood out with a 23 percent rise, led by inflows into the United States. FDI to developing countries held relatively steady. Asia remained the top recipient despite a slight 3 percent decline, while Southeast Asia posted a 10 percent rise. Africa recorded a 75 percent surge, primarily due to a major project in Egypt, while Latin America and the Caribbean saw a 12 percent drop. In the Middle East, investment remained strong, bolstered by Gulf nations' economic diversification initiatives. Structurally vulnerable economies showed mixed results: FDI rose in least developed countries and small island states but fell in landlocked developing nations. UNCTAD emphasized the need to reform global investment frameworks to support sustainable development, ahead of the upcoming Fourth International Conference on Financing for Development, where world leaders will address growing financing gaps. News Source: Emirates News Agency
