UAE Secures 10th Global Position for FDI Inflows with 48% Increase

Coin WorldFriday, Jun 20, 2025 6:17 am ET
1min read

The United Arab Emirates (UAE) has achieved a significant milestone in its economic development by securing the 10th position globally for foreign direct investment (FDI) inflows in 2024. The country attracted a record-breaking $45.6 billion in FDI, marking a 48% increase from the previous year. This achievement underscores the UAE's growing appeal as a

investment destination, driven by its strategic vision and robust economic policies.

The UAE's FDI inflows not only set a new record but also led the Middle East and North Africa (MENA) region, accounting for 37% of the total FDI inflows in the region. This dominance is further highlighted by the UAE's ranking as the second-largest destination for new greenfield projects globally, with 1,369 initiatives announced in 2024. The country's greenfield project growth surged by 2.8%, reaching $14.5 billion in announced capital, despite a global slowdown in greenfield project growth to 0.8%.

The UAE's success in attracting FDI can be attributed to its strategic choices and leadership vision. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, described the achievement as an international vote of confidence in the UAE's economy. The country's resilience and vision, under the leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, have been pivotal in driving this growth.

Key sectors contributing to the FDI surge include software and IT services, business services, renewable energy, oil, gas, and coal, and real estate. The energy sector alone attracted $1.3 billion in greenfield investment, aligning with the UAE's national goals to triple renewable energy capacity by 2030. The UAE's National Investment Strategy 2031 aims to attract $1.3 trillion in FDI over the next six years, with a focus on advanced manufacturing, the digital economy, green energy, financial services, and IT, driven by sustainability and innovation.

The Ministry of Investment has played a crucial role in creating a flexible regulatory environment, streamlining licensing processes, and enhancing investor protections. The UAE's investor-friendly policies include 100% foreign ownership in mainland companies, a 9% corporate tax rate, robust legal frameworks, and a strong focus on talent attraction. The country has also inked 21 Comprehensive Economic Partnership Agreements and 120 bilateral investment treaties, strengthening its global ties.

Major initiatives, such as the $1.5 billion joint venture between

and Abu Dhabi-based G42 to advance AI, highlight the UAE's drive toward digital transformation. These efforts position the UAE not just as an FDI hub but as a center for technological leadership and innovation. The UAE's strategic vision and robust economic policies have positioned it as a leading destination for FDI, driving growth and innovation in key sectors.