Abu dhabi: The United Arab Emirates has achieved a significant milestone by ranking 9th globally as a destination for inbound foreign direct investment (FDI), with a total stock amounting to AED 1.171 trillion. In 2025, the UAE attracted AED 177.3 billion in FDI inflows, marking the fourth consecutive year of record inflows and a 6% increase year-on-year.
According to Emirates News Agency, the United Nations Conference on Trade and Development (UNCTAD) World Investment Report highlights the UAE's remarkable performance in attracting foreign investments. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, emphasized the UAE's solidified status as a global hub for investment and opportunities. He noted the record AED 177.3 billion in FDI inflows in 2025 and the growth in FDI stock to AED 1.17 trillion.
Sheikh Mohammed further mentioned the UAE's consistent global ranking, maintaining the second position for greenfield projects with a total of 1,562 projects for the third consecutive year. He outlined the nation's ambitious goals to increase FDI stock to AED 2.2 trillion by 2031 and attract AED 240 billion annually in FDI inflows, underscoring the national vision and dedication of the UAE's leadership.
The UAE Foreign Direct Investment Report 2026, issued by the Ministry of Investment, records the sustained performance of the UAE in a selective global environment. The report reflects the confidence global investors have in the UAE's long-term vision and policy choices, aligning with the National Investment Strategy 2031.
Mohamed Hassan Alsuwaidi, UAE Minister of Investment, highlighted the UAE's momentum in attracting FDI, with a compound annual growth rate of 24% between 2021 and 2025. He noted the diversification of investments across sectors and geographic origins in 2025, emphasizing the nation's commitment to advancing policies and expanding global partnerships.
The report indicates a maturing investment ecosystem in the UAE, with advanced economies prominently among its top FDI origins. Greenfield projects remain dominant, accounting for close to 45% of FDI, with mergers and acquisitions at 8% and reinvestment at 11.2%. The startup ecosystem also matured, with larger funding rounds and an average deal size of AED 33.8 million.
Key sectors leading the FDI inflows include manufacturing, communications, and real estate. Notable projects include Stargate UAE, OpenAI's first international deployment in Abu Dhabi. The greenfield FDI in 2025 generated over 65,000 jobs across various sectors, further advancing the UAE's economic diversification.
The UAE's performance comes amid a more selective global FDI environment, with global FDI returning to growth in 2025. The UAE contributed significantly to the Middle East's greenfield capex growth, driving regional performance.
Looking ahead, the National Investment Strategy 2031 outlines the UAE's FDI ambitions, with targets for annual inflows and total stock. The UAE Cabinet's approval of the National Investment Fund, with an initial capital of AED 36.7 billion, reinforces the commitment to attracting investments.
The Ministry of Investment, in collaboration with government entities and international partners, continues to support investment in priority sectors, enhance the UAE's investment value proposition, and unlock avenues for long-term economic growth.