UAE Ranks 10th Globally in FDI with $45.6B Inflows in 2024

Photo: WAM

The United Arab Emirates (UAE) has achieved a major milestone by becoming the 10th top country in the world for attracting foreign direct investment (FDI) in 2024. According to the UNCTAD World Investment Report 2025, the UAE received AED 167.6 billion, which is around USD 45.6 billion, in FDI last year. This marks an impressive 48% growth compared to the previous year and highlights the UAE’s rising status as a global hub for investors, even amid global economic uncertainty.

The UAE Ministry of Investment, in its latest report, emphasised the country’s strong performance and growing ability to attract investment in key sectors. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, praised the achievement. He said the ranking is proof of international trust in the UAE's economy and the success of its leadership’s long-term vision. He pointed out that the UAE now attracts 37% of all FDI inflows into the region, meaning that out of every $100 invested in the region, $37 comes into the UAE.

In addition to this, the UAE ranked second globally after the United States in the number of newly announced foreign investment projects, with 1,369 new projects in 2024. The country’s next goal is to attract AED 1.3 trillion in foreign investments over the next six years. Even though there has been a global slowdown in greenfield FDI (new projects) growth, the UAE recorded a 2.8% increase, while the worldwide average was just 0.8%. Total capital for greenfield projects in the UAE reached AED 53.3 billion or USD 14.5 billion.

Working closely with local and international partners, the Ministry of Investment has aggressively sought to create a welcoming and competitive environment for global investors. Over the last decade, FDI inflows into the UAE have increased from AED 31.6 billion in 2015 to AED 167.6 billion in 2024, with the total FDI stock being at USD 270.6 billion. This growth has a compound annual rate of 10.5%.

Mohamed Hassan Alsuwaidi, Minister of Investment, said this achievement reflects the success of the UAE’s long-term planning and the trust of global investors. He added that the UAE offers a stable, transparent, and business-friendly environment, which is helping attract large amounts of capital from around the world. Under the National Investment Strategy 2031, the country aims to double annual FDI inflows and reach a total of AED 2.2 trillion in investments by 2031. The focus will be on strategic sectors like advanced manufacturing, renewable energy, financial services, and technology.

In 2024, the most appealing industries for foreign investment were software and information technology (11.5%), business services (9.7%), renewable energy (9.3%), oil and gas (9%), and real estate (7.8%). The energy sector alone generated AED 4.8 billion (USD 1.3 billion), contributing to the UAE's ambition to treble its renewable energy capacity by 2030.

This achievement has been largely attributed to the UAE's encouraging policies. These include a low corporate tax rate of 9%, simple business creation procedures, robust legal protections for investors, and 100% foreign ownership for mainland enterprises. Investor trust has been further reinforced by legal organisations such as the Dubai International Arbitration Centre.

The country is also attracting top talent from around the world. It ranked fifth globally for skilled professionals and third for AI talent, based on the latest global indexes from INSEAD and Stanford University. With 21 Comprehensive Economic Partnership Agreements and 120 bilateral investment treaties, the UAE continues to expand its international investment network.

The USD 1.5 billion joint AI venture between Microsoft and Abu Dhabi-based G42 is one of the most notable instances of its forward-thinking outlook. This demonstrates how the UAE is actively influencing innovation and technology in the future in addition to investing in the here and now.

With a clear strategy, strong leadership, and a favourable business climate, the UAE is confidently moving toward its goal of becoming a world-leading investment destination.