UAE breaks FDI record with Dh177 billion inflows and top 10 global rank

Dubai: The UAE attracted a record Dh177.3 billion in foreign direct investment inflows in 2025, lifting the country to ninth place globally among destinations for inbound FDI, according to UNCTAD’s World Investment Report 2026.

The figure marked a 6% increase from 2024 and the fourth consecutive year of record FDI inflows. Total FDI stock reached Dh1.17 trillion by the end of 2025, placing the UAE among the world’s strongest investment destinations.

“According to the latest World Investment Report, the UAE continues to solidify its status as a global destination for investment and opportunities," said His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. "In 2025, we attracted a record Dh177.3 billion in FDI inflows, recording a 6% growth, while FDI stock grew to Dh1.17 trillion.”

UAE moves up global ranking

The UAE improved from tenth place in 2024 to ninth globally for inbound FDI in 2025, while maintaining second place worldwide for greenfield project count for the third consecutive year.

“The UAE ranked ninth globally among destinations for inbound FDI and maintained for the third consecutive year its second place globally by greenfield projects with a total of 1,562 projects.," Sheikh Mohammed added.

Greenfield investments remained the main form of FDI entering the UAE, accounting for close to 45% of total inflows. Mergers and acquisitions represented 8%, while reinvestment accounted for 11.2%, showing a broader investment base across new projects, expansion activity and existing operations.

Greenfield projects create 65,000 jobs

The UAE recorded 1,562 greenfield projects in 2025 with combined capital expenditure of Dh125.2 billion, equivalent to 1.8% of the global total.

Manufacturing led greenfield FDI with a 30% share, supported by major projects aimed at expanding the industrial base. Communications accounted for 29%, driven by demand for digital infrastructure and Stargate UAE, OpenAI’s first international deployment, a 1 GW AI compute cluster being developed in Abu Dhabi with G42. Real estate represented 7%, supported by wealth migration and the UAE’s position as a preferred base for global talent.

These projects generated more than 65,000 jobs across transportation and warehousing, business services, software and IT, automotive manufacturing, financial services and communications.

"Over the past years, the UAE’s consistency in attracting record levels of FDI inflows – expanding at a compound annual growth rate of 24% between 2021 and 2025 - has reflected the strength of the choices we have made as a nation," said Mohamed Hassan Alsuwaidi, UAE Minister of Investment. "What makes 2025 a distinctive year is not only the scale of inbound capital, but its composition. Investment continued to diversify across sectors, deepening in quality and broadening in geographic origin.”

Advanced economies remained prominent among the UAE’s top sources of FDI, reflecting investor confidence in the country’s regulatory environment, infrastructure, global connectivity and long-term policy direction.

Startup funding also matured, with the average deal size reaching $9.2 million, or Dh33.8 million, nearly double the previous level. The report said this reflected a move by companies from early-stage formation to expansion.

Middle East capex led by UAE

Global FDI returned to growth in 2025 after three years of decline, reaching around Dh5.9 trillion. The recovery was concentrated in fewer economies, fewer sectors and fewer but larger commitments.

The Middle East led global greenfield capital expenditure growth at 72.4%, with the UAE contributing 38% of regional greenfield capex.

The report also estimated domestic direct investment in the UAE at $100 billion to $119 billion, or Dh367 billion to Dh437 billion, equal to roughly 2.0 to 2.5 times annual FDI inflows.

2031 targets set higher

The UAE’s National Investment Strategy 2031 aims to raise annual FDI inflows to Dh240 billion and increase total FDI stock to Dh2.2 trillion by 2031.

Alsuwaidi said: “Looking ahead, the National Investment Strategy sets a clear direction through 2031: to consolidate our position among the world's leading investment destinations, and to achieve US$ 65 billion (AED 240 billion) in annual FDI inflows.”

The UAE Cabinet also approved the National Investment Fund in November 2025, with initial capital of Dh36.7 billion to support investment attraction and long-term economic growth.