UAE sees $45.6bn foreign direct investment in 2024, targets massive $354bn inflow

Arabian Business

6 hours ago

The UAE has been named the world's 10th largest recipient of foreign direct investment (FDI) in 2024, drawing in AED167.6bn ($45.6bn) in inflows, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025.
This marks a 48 per cent increase year-on-year, cementing the country's status as a global magnet for capital, particularly across strategic sectors. The UAE also accounted for 37 per cent of all FDI inflows into the Middle East region in 2024.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai 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 AED167b ($45bn) in foreign direct investment over the past year, marking a 48 per cent growth compared to the previous year.'
UAE foreign direct investment
'The UAE accounted for 37 per cent 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 AED1.3tn ($354bn) in foreign direct investment over the next six years.
'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.'
The UAE also ranked second globally—after the United States—for the number of newly announced greenfield FDI projects, with 1,369 new initiatives valued at AED53.3bn ($14.5bn).
In contrast to a global slowdown in greenfield project growth (0.8 per cent), the UAE achieved 2.8 per cent growth.
The top sectors for greenfield FDI in 2024 included:
Software and IT services: 11.5 per cent
Business services: 9.7 per cent
Renewable energy: 9.3 per cent
Oil, gas, and coal: 9 per cent
Real estate: 7.8 per cent
The energy sector alone attracted AED4.8bn ($1.3bn), supporting the UAE's target to triple renewable capacity by 2030.
The UAE's cumulative FDI stock reached $270.6bn in 2024, driven by a 10.5 per cent compound annual growth rate since 2015, when inflows stood at AED31.6bn ($8.6bn).
Mohamed Hassan Alsuwaidi, Minister of Investment, said: '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.
'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 National Investment Strategy targets AED2.2tn ($599bn) in cumulative FDI by 2031, with a focus on advanced manufacturing, renewable energy, financial services and information technology.
The United Arab Emirates investment climate is bolstered by:
Full foreign ownership in mainland companies
A competitive 9 per cent corporate tax rate
Streamlined licensing processes
Legal frameworks like the Dubai International Arbitration Centre
Its global appeal is reinforced by 21 Comprehensive Economic Partnership Agreements and 120 bilateral investment treaties.
In talent attraction, the United Arab Emirates ranks fifth globally (INSEAD's Global Talent Competitiveness Index 2024) and third in attracting AI talent (Stanford University's AI Index 2024).