The UAE ranks ninth globally in foreign direct investment, with a balance of 1.17 trillion dirhams during 2025

Dubai, 8 July / WAM / The UAE attracted 48.3 billion US dollars (177.3 billion dirhams) in foreign direct investment flows in 2025, recording record levels of inflows for the fourth year in a row, with an increase of 6% on an annual basis… and ranked ninth in the world among foreign direct investment destinations, according to the World Investment Report issued by the United Nations Conference on Trade and Development (UNCTAD).

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, “may God protect him,” said: “In the latest World Investment Report… the UAE continues to consolidate its position as a global destination for investment and opportunities… In 2025, the country achieved record foreign direct investment flows amounting to 177.3 billion dirhams, a growth of 6%, while the balance of foreign direct investment rose to 1.17 trillion dirhams.”

His Highness added, “The UAE has advanced to ninth place globally among foreign direct investment destinations, and for the third year in a row it has maintained second place globally in the number of founding foreign direct investment projects, with a total of 1,562 projects.”

His Highness said: “Our goal, within the National Investment Strategy, is to reach the balance of foreign direct investment to 2.2 trillion dirhams by 2031, and to attract 240 billion dirhams in foreign direct investment flows annually… These numbers are not just economic indicators, but rather the result of a national vision, the work of one team, and global confidence in a country that has made ambition a reality, and opportunities for achievements… and what is coming to the Emirates, God willing, is more beautiful and greater.”

According to the Foreign Direct Investment in the United Arab Emirates 2026 report, issued by the Ministry of Investment, the country has maintained a high level of performance in light of a more selective global environment, in which global capital has become more careful in its choices. The report indicated that the stability of performance reflects the confidence of global investors in the long-term vision of the UAE, its policy choices, and the frameworks upon which its investment environment is based, as these results were based on the objectives of the National Investment Strategy 2031.

In this regard, His Excellency Mohammed Hassan Al Suwaidi, Minister of Investment, said: “Investments in the UAE continued to gain growing momentum in 2025… Over the past years, the country has recorded record levels of inward foreign direct investment flows, with a compound annual growth rate of 24% between 2021 and 2025, which reflects the tireless efforts made by the country in this field… The exceptional results in 2025 are not limited only to the volume of incoming capital, but also to its composition, The diversity of investments in various sectors has increased, their quality has increased, and their geographical origin has expanded. We affirm our commitment to enhancing confidence in this path by continuing to develop policies and regulations, lowering entry barriers, improving the operating environment, and expanding global partnerships, in line with the National Investment Strategy 2031, which aims to consolidate the country’s position among the most prominent investment destinations at the global level, while increasing foreign direct investment flows to reach 65 billion US dollars annually (240 billion dirhams).”

The report indicated increasing maturity in the investment system in the country, as sources of foreign direct investment have expanded and a prominent presence of advanced economies is among its most prominent sources, reflecting the strength of the regulatory frameworks and institutional flexibility in the country. The UAE has also expanded the scope of its partnerships and bilateral relations, thus enhancing the flexibility and sustainability of its investment position.

The report showed a growing level of maturity in the structure and composition of investment flows. While foundational foreign direct investment projects remain the most prominent type of foreign direct investment coming into the country at a rate of approximately 45%, mergers and acquisitions grew to constitute 8%, in addition to reinvestment projects, which constituted 11.2% of the total.

The startup ecosystem has also matured in parallel, as financing rounds have expanded, bringing the average deal size to $9.2 million, nearly double the previous level, as companies move from the founding stage to the expansion stage.

In terms of seed foreign direct investment, 1,562 projects were announced with total capital expenditures amounting to US$34.1 billion (AED 125.2 billion), equivalent to 1.8% of the global total.

Three sectors topped this activity: the manufacturing sector with a share of 30%, driven by pioneering projects to develop the industrial base of this sector and attract future investments; And the telecommunications sector by 29%, supported by the “Emirates Stargate” project, the first international project of “Open AI”, which is an artificial intelligence computing complex with a capacity of 1 gigawatt, which is being developed in Abu Dhabi in cooperation with the UAE company “G42”, with the continued demand for digital infrastructure. In addition to the real estate sector by 7%, motivated by attracting wealth and the growing position of the UAE as a preferred destination for people of talent around the world to live.

Seed foreign direct investment in 2025 also provided more than 65,000 job opportunities in various sectors, including transportation and warehousing, business services, software and information technology services, automobile manufacturing, financial services, and communications, which directly supports economic diversification efforts in the country.

The UAE maintained its foreign direct investment performance in light of a more selective global investment environment. After three years of decline, global foreign direct investment flows returned to growth in 2025 to reach about 1.6 trillion US dollars (5.9 trillion dirhams), and capital was concentrated during this recovery in a smaller number of economies and sectors, and in fewer commitments in number and greater in value.

Regional performance varied clearly, with the Middle East, North America, and Western Europe leading growth, while other regions declined.

The Middle East region topped the global ranking in terms of growth in capital expenditures for founding foreign direct investment at 72.4%, and the UAE was its main driver, contributing 38% of those expenditures at the regional level.

The report confirmed that this performance is based on solid foundations built over decades of thoughtful strategic policies, based on a long-term vision, forward-looking regulatory frameworks, world-class infrastructure, distinguished global connectivity, and a broad base of talent and competencies.

The report estimated the contribution of domestic direct investment at between 100 and 119 billion US dollars (367 and 437 billion dirhams), or about 2.0 to 2.5 times the annual inflows of foreign direct investment.

It is worth noting that the National Investment Strategy 2031 provides a roadmap for the UAE’s future ambitions in the field of foreign direct investment, setting annual targets for inflows until 2031.

The strategy sets clear goals, which are to raise annual inward foreign direct investment flows to US$65 billion (240 billion dirhams), and to reach the balance of foreign direct investment to US$600 billion (2.2 trillion dirhams). To support this trend, the Council of Ministers approved in November 2025 the establishment of the National Investment Fund with an initial capital of US$10 billion (36.7 billion dirhams), to contribute to enhancing investment attraction.

The Ministry of Investment continues to lead this trend by supporting investment in priority sectors, providing a flexible competitive environment for global capital, in addition to strengthening bilateral investment relations, and acting as a reliable partner for international and local investors alike.

The Ministry works in close cooperation with federal and local government agencies, investment promotion bodies, the private sector, and international partners to develop policies that keep pace with future requirements, enhance the investment value provided by the country, and create new opportunities for sustainable economic growth.

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