10-03-2025
Dubai leads UAE in attracting greenfield FDI projects in 2024
Dubai accounted for the lion's share of the greenfield foreign direct investment (FDI) projects in the UAE last year, accounting for 58 per cent of the total, a report showed.
According to Emirates NBD Research, the value of new greenfield projects in the UAE fell 33 per cent year on year in 2024 to $14.5 billion, representing a normalisation after a particularly strong 2023. Dubai remained the largest recipient of greenfield FDI in the UAE, accounting for around 58 per cent of the total value of announced projects, followed by Sharjah with almost 12 per cent in 2024. Abu Dhabi accounted for just under 11 per cent of the total value of announced projects last year but saw a sharp reduction from the levels seen in both 2022 and 2023, years in which there were substantial investments made in renewables, automotive OEMS and the ICT sector.
Industries that saw the largest value of announced greenfield projects in the UAE in 2024 include real estate, software & IT, renewables, coal, oil and gas, business services, and automotive original equipment manufacturers (OEMs). Although the value of Saudi greenfield project announcements declined 28 per cent year on year in 2024 to almost $22 billion, it remains strong, being the third highest annual value on record. The US, China, the UK and the UAE were the top source countries for Saudi greenfield projects in 2024. The value of projects stemming from the US saw a sharp rise in 2024, driven by a $5.3 billion investment by Amazon Web Services in data and innovation centres, the report, written by senior economist Jeanne Walters, said.
The main sources of FDI for projects in the UAE remain India, the US and the UK. Real estate, software & IT, renewables, coal, oil and gas, business services, and automotive OEMS were the industries that saw the largest value of announced greenfield projects in 2024. Notable projects include a $680 million project by Saudi-based ACWA Power for the development of a water plant in Sharjah, two solar power projects worth $633 million each, a $600 million bio-fuel processing plant in Fujairah, and several automotive OEM projects.
The primary sources of FDI into GCC economies in 2024, on a value basis, included the US (25 per cent), China (17 per cent), the UK (9 per cent) and India (9 per cent). The UAE also made a material contribution to greenfield FDI in the rest of the GCC, accounting for 5 per cent of announced projects in 2024. Sectors seeing the highest value of greenfield projects include communications (18 per cent), renewables (14 per cent), metals (8 per cent), electronic components (8 per cent), as well as coal, oil and gas (8 per cent).
Global FDI flows declined in 2024 in both value and volume. UNCTAD estimates that the number and value of announced greenfield FDI projects declined by 8 per cent and 7 per cent year on year respectively. Despite the annual decline, the value of greenfield project announcements remains high by historical standards because of several large-scale projects related to the manufacturing of semiconductors and AI technology. The UAE features as the source country for two of the top 10 projects by value of investment, including a real estate investment into Ras El-Hekma in Egypt by ADQ and an investment by Mubadala in semiconductor manufacturing in the US. While the aggregate value of greenfield projects fell in 2024, there were pronounced differences across geographical regions. Developed economies saw a 15 per cent year on year rise in the value of announced greenfield projects, disproportionately driven by large increases in the value of projects in the US (+93 per cent year on year) and the UK (+32 per cent year on year). In contrast, developing economies in saw a 24 per cent year on year decline in the value of announced greenfield projects.
