UAE records $48.3B in foreign investment, ranks among world’s top 10 destinations

ABU DHABI, UAE (MNTV) — The United Arab Emirates attracted a record AED177.3 billion ($48.3 billion) in foreign direct investment in 2025, ranking ninth globally for inbound FDI, according to the latest UN Conference on Trade and Development (UNCTAD) World Investment Report. 

According to the report, the UAE maintained second place worldwide for greenfield projects for the third consecutive year, with 1,562 announced projects.

The report showed that FDI inflows into the UAE increased by 6% compared with 2024, marking the fourth consecutive year of record investment. 

The country also retained its position as the world’s second-largest destination for greenfield investment projects for the third straight year, with 1,562 announced projects.

UAE Vice President, Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum said the latest figures reflected growing international confidence in the country’s economic strategy and long-term investment environment.

He said the UAE aims to increase its total FDI stock to AED2.2 trillion by 2031 while attracting annual foreign investment inflows of AED240 billion ($65 billion).

According to the UAE Foreign Direct Investment Report 2026, issued by the Ministry of Investment, the country’s strong performance came despite a more selective global investment climate, underscoring sustained investor confidence in the UAE’s National Investment Strategy 2031.

Minister of Investment Mohamed Hassan Alsuwaidi said foreign investment into the UAE grew at a compound annual growth rate of 24% between 2021 and 2025, with investment becoming increasingly diversified across sectors and originating from a broader range of countries.

He said the government would continue strengthening investment policies, improving the business environment, reducing barriers to entry and expanding international partnerships to maintain the country’s competitiveness.

The report found that greenfield projects remained the largest source of foreign investment, accounting for nearly 45% of total FDI inflows during 2025.

A total of 1,562 greenfield projects were announced during the year, representing capital expenditure of approximately $34.1 billion (AED125.2 billion) and creating more than 65,000 jobs.

Manufacturing attracted the largest share of greenfield investment at 30%, followed by communications at 29% and real estate at 7%.

The communications sector received a major boost from Stargate UAE, described as OpenAI’s first international deployment, featuring a one-gigawatt artificial intelligence computing cluster being developed in Abu Dhabi in partnership with UAE-based technology company G42.

Meanwhile, continued demand for property from international investors and skilled professionals contributed to strong growth in the real estate sector.

The National Investment Strategy 2031 seeks to raise annual FDI inflows to $65 billion while increasing the country’s total foreign investment stock to approximately $600 billion (AED2.2 trillion).

To support those objectives, the UAE Cabinet approved the National Investment Fund in November 2025 with initial capital of $10 billion (AED36.7 billion) to strengthen the country’s investment ecosystem.

The UNCTAD report estimated that global foreign direct investment reached approximately $1.6 trillion in 2025 following three consecutive years of decline. 

It also found that the Middle East recorded the world’s fastest growth in greenfield investment expenditure, increasing by 72.4%, with the UAE accounting for 38% of the region’s total greenfield capital expenditure.