Beyond incentives: Talent is the new currency of global FDI

For decades, the global competition for Foreign Direct Investment (FDI) was a straightforward race to the bottom; with nations around the world enticing investment through lucrative incentives including tax breaks, attractive land and real estate opportunities, and relaxed regulations. While these still play a role in a global context, especially within developing nations, a major shift is underway; and the most valuable asset a country can now offer is no longer financial, but human capital; and arguably, the future of FDI is talent.

A 2025 survey by the Society for Human Resource Management (SHRM) finds that 71% of global business leaders now rank access to skilled talent as the single most important factor in investment decisions, surpassing even costs, regulations, and location. Investors increasingly ask not just, “What will it cost?” but, “Who will run it, and do they have the skills?” This reality is even more pressing as global FDI flows slow: while world FDI fell by 11% in 2024 according to UNCTAD, countries prioritising digital literacy and innovative ecosystems outperformed the rest.

Nowhere is this more evident than in the Middle East, and the UAE stands as the region’s prime example of this pivot from oil to intellect and talent investment; with our nation’s ambitious “Projects of the 50” and “Operation 300bn” industrial strategy fundamentally envisioned through cultivating a knowledge-based and skills-backed economy.

In the 2025 Kearney Foreign Direct Investment (FDI) Confidence Index, the UAE has reinforced its position as one of the world’s most attractive destinations for global investors, ranking 9th globally and 2nd among emerging markets, just behind China. Investor sentiment continues to strengthen, with the UAE’s net optimism score rising to 42%, the highest among all emerging markets. This confidence is driven by economic strength, ease of doing business, innovation, trusted governance, and world-class infrastructure. Beyond perception, the UAE also leads in actual investment flows, achieving the highest Greenfield FDI performance worldwide, attracting over 14 times more projects than expected relative to its GDP size.

Within Sharjah specifically, the results are clear: in the first half of 2025, the emirate recorded a 361% increase in capital investments compared to the same period in 2024, attracting $1.5 billion and becoming the fastest-growing emirate in the country. Sharjah is also now ranked as the 5th fastest-growing city globally for FDI inflows in terms of new projects, capital expenditure, and job creation, according to data from Financial Times’ fDi Markets.

Supporting this trajectory, Sharjah’s talent-driven investment strategy is yielding strong results. Central to this surge is our world-class knowledge ecosystem. The emirate has invested heavily in education, with institutions like the University of Sharjah and American University of Sharjah producing a steady pipeline of STEM, business, and innovation graduates. The Sharjah Research, Technology & Innovation Park (SRTIP), home to the Sharjah Entrepreneurship Centre and numerous innovative companies, fosters academia–industry collaboration and boosts appeal to high-tech investors.

This fusion of talent, sustainability, and investment is defining our era and will culminate in the convergence of thought leadership this October as we host our 8th annual Sharjah Investment Forum (SIF 2025), held jointly with the 29th World Investment Conference (WIC). Under the theme ‘Transforming Our World: Investing for a Resilient and Sustainable Future’, and organised in partnership with the World Association of Investment Promotion Agencies (WAIPA) and the UAE Ministry of Investment, this event marks a first for the region.

This also serves as a testament to Sharjah’s role as a trusted platform for global economic dialogue, and it is here that economic leaders, investors, and decision-makers will gather to translate these very principles; where investing in people results in practical strategies for cross-border growth. The core message is clear and the most sustainable strategy is to invest in your own people; and a skill-equipped and innovative talent pool is a competitive advantage that can last for generations.

Mohamed Juma Al Musharrkh is CEO of Invest in Sharjah