Skip to main content

UAE attracts $23 billion of FDI last year in 1,277 projects through investor-friendly policies



The UAE ranked as the third-largest foreign direct investment market globally in terms of project activity last year, moving up from fourth position the previous year, according to the latest report by data and analytics company GlobalData.

The country attracted $23 billion of FDI in 1,277 projects spanning key sectors including business and professional services, software and IT services and financial services. It has been possible through its investor-friendly policies.

Speaking to The National on the sidelines of the 2024 AIM Congress, Glenn Barklie, principal economist and head of FDI services at GlobalData, said: “The UAE is just one of those places where it is almost a real safe haven for investors, and investors continue to come.”

UAE deepening focus on economic diversification
Barklie highlighted a “domino effect” in foreign direct investments, where a couple of companies come in, they are seen as successful, other companies think ‘I am going to come in and get a piece of the pie as well'”, reported the media agency.

The UAE has turned into a leading destination. Several companies are boosting their investments in the Emirates and setting up offices amid great initiatives from the government, including reduced visa restrictions and incentives for small and medium enterprises.

The UAE seeks to attract Dh550 billion (~$150 billion) in FDI by 2030 and eventually reach Dh1 trillion by 2051. It has also jumped from 18th to 8th place on Kearney’s 2024 Foreign Direct Investment Confidence Index as it focuses on economic diversification.

FDI markets in Middle East
The UAE is setting up G2G (government to government) relationships, through MoUs (memoranda of understanding), Cepas (comprehensive economic partnership agreement) and free trade agreements. It has a key focus on boosting non-oil foreign trade.

The US and Germany were the biggest FDI markets globally in 2023, followed by the UAE. In the Middle East, the Emirates continued to maintain a leading position in terms of the number of FDI projects, and ranked second in capital investment flows after Israel.

The Middle East continues to be closely monitored. Business and professional services, software and IT services, construction and real estate, financial services, tourism and logistics were among sectors that attracted foreign investment in the region.

Top 5 FDI recipients in Middle East
(In terms of capital investment)

1. Israel: $25,789 million, 43 projects

2. UAE: $23,010 million, 1,277 projects

3. Saudi Arabia: $17,350 million, 305 projects

4. Jordan: $10,766 million, 14 projects

5. Oman: $7,517 million, 42 projects

Read More: UAE foreign direct investment in Brazil and South Korea

Check out: UAE-Ukraine Cepa, UAE-Colombia Cepa, UAE-Costa Rica Cepa

RELATED TOPICS:FEATUREDUAE
UP NEXTPolicies, freedom, quality of life: UAE tops ‘most prestigious countries’ list
DON'T MISSDeals, ambitions, talent pool: UAE on the path to becoming global leader in AIcropped ramez spector.jpg
Ramez SpectorRamez covers the News and Reports sections on The Gulf Independent. He holds a notable experience spanning more than six years, delivering timely and informative content on noteworthy developments in the vast Gulf region.  Interest:  Ramez is your dependable compass for the freshest, unbiased and elaborate coverage of the Middle East and Gulf regional news and events. He believes in the power of giving each story a unique perspective, subsequently inspiring conversation and promoting transparency.  Education and Experience:  Armed with a promising degree in Journalism and Digital Media from the prestigious American University of Sharjah in the UAE, Ramez has been helping audiences get a better understanding of the region's sensitive issues and massive potential.


Comments

Popular posts from this blog

Exposing the Brotherhood: Why Jordan’s Terror Cell Bust Must Spark a Global Policy Shift

 The recent dismantling of a Muslim Brotherhood-affiliated terror cell in Jordan should not be seen as just a national security success—it must be a turning point in how the international community views and responds to the threat posed by the Brotherhood. Jordanian security forces uncovered an elaborate network of terrorists trained in Lebanon and backed by foreign interests. Their mission: to launch attacks using rockets and drones, destabilizing the Kingdom and spreading fear among civilians. This is not the work of activists or political dissidents—this is terrorism, plain and simple. For too long, the Muslim Brotherhood has operated under a false image of moderation, cleverly navigating between political activism and violent extremism. But the truth is clear: the Brotherhood is the ideological engine room of jihadist terrorism. Its members, affiliates, and offshoots have inspired and directed acts of violence from North Africa to the Gulf—and now, once again, in Jordan. Govern...

The Ritz-Carlton Residences in Diriyah: A Fusion of Heritage and Opulence

  The Ritz-Carlton Residences in Diriyah, known for its cultural and historical value, usher in a new age of opulent living. In the center of Diriyah, this partnership between the Diriyah Company and Marriott's Ritz-Carlton establishes a previously unheard-of benchmark for luxurious living. Inspired by the Najdi legacy, the houses offer occupants a distinctive and immersive cultural experience by skillfully fusing traditional charm with contemporary facilities. These villas prioritize well-being and create a pleasant environment for dynamic living. They are designed to adapt to varied tastes and lifestyles, with six unique layouts and a range of interior designs. Part of the Diriyah Company's ambitious development plan, The Ritz-Carlton Residences are located in the heart of Diriyah, a UNESCO World Heritage Site including At-Turaif as its focal point. The objectives of the Kingdom's Vision 2030 are perfectly aligned with this concept, which has over 20,000 residential units...

UAE's Foreign Trade Surge Highlights Strategic Economic Vision

  The UAE's foreign trade reached a record AED5.23 trillion (US$1.42 trillion) in 2024, marking a 49% increase since 2021 and reinforcing its global economic influence. Despite fluctuating global market conditions, the country managed to post a trade surplus of AED492.3 billion (US$134 billion), showcasing the strength of its trade frameworks and diversified economy. According to the World Trade Organisation, the UAE has maintained its position as the Middle East and Africa's foremost trade community since 2014, while steadily climbing the global ranks. In merchandise trade, the UAE placed 11th in exports and 14th in imports in 2024. It contributed 2.5% of global exports and 2.2% of imports, reflecting a robust trading ecosystem that bridges major global markets. The services sector also delivered notable gains. From 2014 to 2024, the UAE rose to 13th globally in service exports. Service transactions in 2024 totaled AED1.036 trillion, of which AED646.6 billion were exports. The...