62% Share of UAE in Foreign Investment within GCC Countries
55.6% Share of UAE from Western Asia
37% Share of UAE in the MENA Region
Experts: UAE Holds a Leading Position in the Global Investment Landscape
The United Arab Emirates (UAE) achieved its highest ever direct foreign investment inflows in 2024, amounting to 167.6 billion dirhams (approximately 45.6 billion dollars), reflecting an impressive growth rate of 430% compared to 2015, when investments totaled 31.6 billion dirhams (around 8.5 billion dollars). This marks a compound annual growth rate of 10.5% over the past decade, as reported in the Global Investment Report by the United Nations Conference on Trade and Development (UNCTAD).
According to a review by local media, direct foreign investment in the UAE over the ten years since 2015 has reached nearly 196.3 billion dollars (720.5 billion dirhams).
The analysis also highlighted that the total foreign investment in the Gulf Cooperation Council (GCC) countries amounted to 73.6 billion dollars, with the UAE accounting for 62% of this total.
In Western Asia, total foreign investment reached approximately 82.08 billion dollars, with the UAE’s share exceeding 55.6%. Furthermore, the nation represents about 37% of total direct foreign investment inflows in the Middle East and North Africa (MENA) region, positioning the UAE as the tenth largest recipient of direct foreign investment globally, according to the UNCTAD report.
As per data from the Ministry of Investment, the UAE registered the issuance of 200,000 new economic licenses in 2024 across various sectors, contributing to the operation of more than 1.1 million businesses within the UAE market.
Additionally, the Kearney Index for 2025 ranked the UAE as the second most attractive emerging market for foreign direct investment, solidifying its status as a preferred investment destination globally.
Investment Climate
Several economic experts expressed to local media that the UAE has achieved unprecedented record figures, establishing a prominent position on the global investment map. They noted that the nation has developed its infrastructure and legal framework to create a flexible and appealing investment environment for entrepreneurs and businesses across all sectors. This has helped maintain the UAE’s global standing, significantly increasing the value of foreign direct investments, underpinned by a strong economy and effective governance.
The experts emphasized that the record levels of foreign direct investment flowing into the UAE reflect the qualitative leaps in the national economy.
They pointed out that the UAE has strengthened its status as a magnet for foreign investments and a global trade hub by providing an ideal business environment for investors and entrepreneurs and forming partnerships with key countries in the international economic landscape.
Investment Appeal
Financial analyst Wadah Al-Taha shared insights, stating that the UAE has consistently led the region in attracting foreign direct investments, according to the UNCTAD report for 2024. He noted the surge in FDI to the UAE, surpassing 45 billion dollars, marking a clear regional leadership.
He further added that there have been advancements in the Middle East and North Africa, even as global foreign direct investments have decreased by around 11%, nearing 1.49 trillion dollars.
The expert highlighted significant declines elsewhere, with Europe experiencing a drop of about 58%, alongside reductions in investment across Asia.
He noted that the developments in the UAE are indeed remarkable, showcasing the nation’s strong investment appeal that stems from robust infrastructure, a flexible regulatory framework, a responsive approach to global changes, a stable currency linked to the dollar, social stability, skilled workforces, and geographical advantages, all contributing to its attractiveness. He also observed a trend of increased migration of wealthy individuals to the UAE during the COVID-19 pandemic, which has continued since then, enhancing the nation’s appeal.
He concluded that the UAE has the capability to manage and sustain its attractiveness as an investment destination.
Competitive Advantages
Economic expert Jamal Al-Jarwan noted that the UAE significantly boosts its appeal to foreign investors through various competitive advantages. He highlighted growth drivers such as allowing 100% foreign ownership, streamlining business registration and ownership procedures, and diversifying the target sectors for investments, which include software services, IT, renewable energy, and real estate.
Additionally, he indicated that the UAE has set a national strategy for 2031 aimed at doubling annual foreign direct investment inflows, targeting a total of 2.2 trillion dirhams in foreign investments by 2031 and enhancing international trade partnerships.
He pointed out several factors that bolster foreign investor confidence, including a stable and transparent investment environment and a robust legal framework, exemplified by the Dubai International Arbitration Centre. Furthermore, the UAE is ranked fifth globally in attracting advanced skills and third in artificial intelligence talent.
In summary, the UAE is an attractive destination thanks to its comprehensive environment supporting foreign investment, a long-term vision for a sustainable and diversified economy, and a prominent position in attracting global investors and new projects.
Reflecting on the future, Al-Jarwan expressed confidence that the UAE is well on its way to exceeding its 2031 investment targets, emphasizing the need to persist with incentives, enhance transparency, and expand sectors with added value.
Development Policies
Economic expert Ahmed Al-Darmaki remarked that over the past decade, the UAE has successfully enriched and developed its investment climate, promoting the attraction of foreign direct investment in alignment with the state’s developmental policies, aiming to solidify the UAE’s position as a primary hub for foreign investment at both regional and global levels.
He explained that the UAE has established itself as an appealing destination for investments by developing the investment environment and launching new sectors for investment, including fintech, advanced agricultural technology, healthcare, e-commerce, and manufacturing.
He noted efforts to broaden and diversify the production base while transferring and attracting advanced technology and knowledge in priority sectors, thereby achieving balanced and sustainable development and creating job opportunities in various fields.
Moreover, he stated that the UAE has effectively created an appealing environment for foreign direct investment by unifying and simplifying procedures for licensing foreign investment projects, as well as monitoring and evaluating the performance of foreign investments in the country—all of which have contributed to a qualitative leap in attracting capital, leading to better returns and added value to the national economy.
The Right Time
Economist Mohammed Al-Jabri stated that over the past decade, the UAE has emerged as a global hub for foreign direct investment, establishing itself as a regional model for economic openness through updated legislation and enhanced investor confidence, driven by visionary leadership and strategic reforms.
He added that reports from international organizations reflect unprecedented achievements in foreign direct investment projects realized by the UAE, highlighting the country’s standing and affirming its status as a global business center and an attractive destination for investments from around the world.
He mentioned that the UAE is home to over 40 free zones, allowing foreign investors full ownership of companies (100%). These zones provide substantial flexibility for investors to choose suitable locations for establishing their businesses throughout various Emirates, along with numerous advantages, including tax exemptions, making the country an attractive environment for foreign investments.
He concluded that the UAE makes timely and appropriate decisions, citing the merging of tourism responsibilities within the Ministry of Economy as a pivotal step towards unifying the national vision.
Al-Jabri affirmed the UAE’s confident outlook towards the future by empowering the private sector, fostering innovation, and expanding international partnerships, thereby reinforcing its position as a global economic and tourism center that aligns with the aspirations of future generations.