For nearly five decades, the world has viewed the UAE primarily as a source of capital. Today, however, the UAE is no longer just a source of capital — it has become a prime destination for global investment. This shift represents a fundamental change in how we, as a nation, engage with the world, and the evidence is compelling.
Let me start with the numbers. The UAE ranked second globally in foreign direct investment (FDI) in 2023, attracting an impressive $30.6 billion (Dh112.4 billion), according to the World Investment Report 2024, published by the UN Trade and Development (UNCTAD). This achievement underscores the confidence the international community has in our economy, our institutions, and our vision.
This isn’t just an isolated figure — it’s part of a larger trend that shows our growing role as a global investment hub. Our financial centres, such as Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), are thriving, attracting major hedge funds, asset managers, and investment firms. The UAE now boasts over $238 billion in assets under management, with leading global funds establishing significant operations here.
The UAE now boasts over $238 billion in assets under management, with leading global funds establishing significant operations here.
And it’s not just businesses that are choosing the UAE as their destination; high-net-worth individuals (HNWIs) are also flocking here. Henley & Partners projects that 6,500 millionaires will make the UAE their home in 2024 alone. This migration of wealth and talent further cements our status as a global financial centre.
So, why is this monumental shift happening? Why here, and why now?
Global situation
First, we must acknowledge the changing global landscape. Many jurisdictions worldwide are tightening regulations, imposing higher taxes, and enacting policies that make it harder for investors to operate. At the same time, the world is increasingly seeking stable, business-friendly environments where wealth can grow. In this context, the UAE has emerged as a beacon of opportunity. We have built a reputation for respecting wealth and investment, offering a stable political environment, transparent regulations, and a legal framework that protects the interests of investors.
We have not achieved this success by being permissive, however. We have worked tirelessly to ensure the integrity of our financial systems. I am proud to share that the Financial Action Task Force has recognised our efforts by removing us from their grey list. This is a testament to the UAE’s commitment to transparency, good governance, and financial integrity. We are vigilant in our efforts to combat financial crime, and we have zero tolerance for activities that could undermine trust in our institutions. For instance, in August 2023, the UAE suspended the licences of 32 gold refiners for breaching anti-money laundering regulations. This sends a clear message: we welcome legitimate investment and business, but we have no tolerance for misconduct.
The UAE’s financial ecosystem has also evolved into one of the most robust in the world. The role of ADGM and DIFC in this transformation cannot be overstated. These centres offer a common law framework that international businesses need, coupled with a deep talent pool of professionals across law, banking, investment management, and more. Together, they form a thriving ecosystem that supports complex financial operations and enables global businesses to flourish.
In addition, the UAE’s Golden Visa programme has played a pivotal role in transforming our nation into a global capital hub. This programme has allowed skilled professionals and entrepreneurs to put down roots in the UAE, creating an environment where talent flows freely between companies and industries. It has unleashed the animal spirits of ambitious individuals who are creating new businesses, leading innovations, and driving our economy forward.
Moreover, Resolution 85 of 2022, which established favourable tax residency criteria in the UAE, has provided further incentives for international businesses and HNWIs to relocate here. The Golden Visa combined with Resolution 85 creates a powerful magnet for talent and capital, reinforcing the UAE’s position as a global destination for investment.
Legal and regulatory reforms
Our success is not just the result of favourable policies — it is also due to continuous legal and regulatory reforms. We have modernised our legal frameworks to ensure they meet the needs of an evolving global economy. For example, we’ve reformed Company Law, particularly in regard to family businesses, offering better governance and greater flexibility for companies to thrive. These reforms provide the legal certainty that investors and entrepreneurs need to operate with confidence in the UAE.
In addition to legal reforms, we have strategically linked free zones to ports and airports, positioning the UAE as a vital part of the global supply chain. Our geographic location, combined with world-class infrastructure and shipping and airline connections, makes the UAE a central hub for trade and investment between the East and the West. This connectivity further strengthens our appeal as a destination for global capital.
The road ahead
Despite our remarkable progress, our ambition remains high. As the late Shaikh Zayed, Founding Father of the UAE, once said, “We are like those who have climbed a mountain and reached the top. When we looked down, we still wanted to go higher.” Our vision for the UAE is one of continuous growth, where we build on our strengths and constantly adapt to meet the changing demands of the global economy.
To that end, I have led a think-tank focused on exploring how we can further enhance the UAE’s role as a global capital hub. We’ve studied financial centres across the world, including London, New York and Singapore, but we are not looking to replicate their models — we are creating our own. Our goal is to build a legal and regulatory environment that encourages innovation, supports entrepreneurship, and attracts capital from every corner of the globe.
Key areas of focus include extending the role of common law in our economy, expanding access to funding for small and medium-sized enterprises, and reforming financial market regulations to align more closely with global best practices. We are also working to enhance private banking services to cater to the growing number of wealthy individuals choosing the UAE as their home.
A vision for the future
As we continue to build on our successes, we remain committed to furthering our position as a global investment hub, where wealth and talent come together to create new opportunities and drive economic growth.
With a clear vision for the future, we are confident that the UAE will continue to attract investment, foster innovation, and remain a beacon of opportunity in the global economy.
