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Al Etihad
a day ago
- Business
- Al Etihad
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 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 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 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 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 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 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 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 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 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 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 partnerships are another key driver of investment attraction, with 21 Comprehensive Economic Partnership Agreements and 120 bilateral investment treaties supporting the investment 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 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.
Khaleej Times
29-01-2025
- Business
- Khaleej Times
UAE banking sector assets surge to Dh4.46 trillion
The UAE banking sector, the largest in the Middle East, recorded a big surge in assets in 2024, reaching Dh4.457 trillion at the end of November 2024, compared to Dh4.075 trillion in 2023, the Central Bank of the UAE (CBUAE) said on Wednesday. The net non-performing loan ratio decreased to 2.1 per cent in 2024 from 2.4 per cent in 2023, highlighting improved asset quality in the banking sector. The insurance sector also grew significantly in 2024, with gross written premiums reaching approximately Dh64.5 billion, compared to Dh53.3 billion in 2023. The CBUAE achieved record financial results in 2024 across all indicators. Total assets are estimated to reach approximately Dh896 billion, driven by increased net inflows into the national economy, compared to Dh721 billion in 2023. The apex bank noted that the UAE's national economy continued its exceptional performance in 2024, driven by positive growth across all economic sectors and the vital role of the CBUAE. Real GDP growth is estimated at 4.0 per cent, with nominal GDP projected to reach approximately Dh2 trillion in 2024, compared to Dh1.9 trillion in 2023. In 2024, the central bank implemented initiatives to support national housing programmes by providing flexibility in applying certain mortgage requirements. Support provided through national housing funds reached Dh6.1 billion in 2024. To develop the local capital market and effectively implement the dirham's monetary framework, outstanding Certificates of Deposit (CDs) reached Dh209 billion in 2024, compared to Dh169 billion in 2023, reflecting high market liquidity. The CBUAE is among the first central banks globally to issue Islamic CDs, with outstanding balances reaching Dh 42 billion in 2024, compared to Dh45 billion in 2023. Under the Treasury Bonds Programme, launched in 2022 in collaboration with the Ministry of Finance as issuer and the CBUAE as issuing and paying agent, Dh 8.3 billion in dirham-denominated Treasury bonds and Sukuk were issued in 2024, compared to Dh16.7 billion in 2023, the CBUAE said. The several legislative and regulatory frameworks issued by the CBUAE to enhance regulation and supervision of licensed financial institutions and improve the performance of the financial, banking, and insurance sectors, include Federal Decree-Law No. 13 of 2023, establishing and regulating the Financial Stability Council, chaired by the CBUAE's Chairman. The council aims to enhance and protect financial stability, facilitate cooperation among regulatory authorities, identify risks, recommend mitigation strategies for systemic risks, promote financial control, and ensure the financial system's effective contribution to sustainable economic development. Over 139 new regulations, standards, and guidelines were issued, and 307 regulations and notices were repealed between 2018 and 2024, reflecting the CBUAE's commitment to Zero Government bureaucracy programme and to modernising financial regulations and streamlining financial services for individuals, licensed financial institutions, and businesses. Key regulations issued in 2024 include the world's first Open Finance framework, promoting secure and efficient open finance services, the apex bank said. The CBUAE also issued the Middle East's first stablecoins regulation and the GCC's first specialised banks with low-risk regulation. A new enabling regulatory framework for licensed financial institutions and insurance companies, aligned with international standards, supports the development of the financial sector and the national economy. Enhancements were also made to AML/CFT regulations.
