Abu dhabi: Mohamed Hassan Alsuwaidi, UAE Minister of Investment, affirmed that the United Arab Emirates continues to strengthen its position as a leading global investment destination, supported by an advanced economic and legislative framework and a clear strategic vision aimed at enhancing the country's competitiveness and attracting high-quality investments.
According to Emirates News Agency, Alsuwaidi, in statements on the occasion of the Ministry of Investment's launch of the UAE Foreign Direct Investment Report 2026, highlighted the country's record performance during 2025, with inward foreign direct investment (FDI) inflows reaching a historic US$48.3 billion for the fourth consecutive year. He added that the UAE advanced to ninth place globally among the world's leading FDI destinations.
During the interview, Alsuwaidi outlined the key features of the UAE's investment landscape and its strategic priorities for the coming period. He discussed the UAE's targets for attracting foreign direct investment, stating that the National Investment Strategy 2031 sets clear objectives, including increasing annual inward FDI inflows to AED 240 billion (approximately US$65 billion) and raising the country's FDI stock to AED 2.2 trillion (approximately US$600 billion) by 2031. He noted that the UAE is making steady progress toward achieving these targets, with inward FDI inflows reaching a new record of US$48.3 billion in 2025, surpassing the interim target of US$37 billion.
The automotive manufacturing sector ranked first among sectors attracting greenfield foreign direct investment in terms of capital expenditure, accounting for more than 30% of total capital spending. It was followed by the communications sector, driven by investments in data centres and artificial intelligence infrastructure, with 29% of capital expenditure. The real estate sector recorded capital expenditure of US$1.9 billion, representing 71% year-on-year growth, while the transportation and storage sector ranked fourth, reflecting the UAE's position as a global logistics and trade hub.
Alsuwaidi emphasized the importance of domestic direct investment, which ranges between US$100 billion and US$119 billion, equivalent to approximately 2.5 times the annual inward FDI inflows. He stressed that the UAE will continue developing policies and regulations, reducing barriers to market entry, and improving the operating environment to further strengthen its position among the world's leading investment and business destinations.
On attracting investment in artificial intelligence and advanced technology, Alsuwaidi noted that the UAE was an early adopter of AI technologies in government operations. He added that estimates indicate artificial intelligence will contribute approximately 14% of the UAE's GDP by 2030, representing the largest proportional contribution and the fastest growth rate in the Middle East. The Ministry is working to build integrated ecosystems that include computing infrastructure, scientific research, and talent development.
The Minister highlighted the growth of the communications sector, which accounted for approximately 29% of greenfield FDI capital expenditure in 2025. This growth has been supported by the establishment of cloud regions in the UAE by the world's largest cloud computing providers and a data centre base with a total capacity exceeding 250 megawatts.
Alsuwaidi also noted that the UAE has consolidated its position as a leading global investor through the efforts of its sovereign investment institutions. Outward foreign direct investment from the UAE reached US$63.4 billion in 2025, while the country's outward FDI stock stood at US$402.7 billion by the end of the year. UAE companies continue to strengthen their international presence, with outbound mergers and acquisitions reaching a record US$18.2 billion across 117 transactions in 2025.
He concluded by affirming that the structure of foreign direct investment is increasingly aligned with the national economy's key growth sectors, underscoring the attractiveness of the UAE's investment environment and the strong confidence of international investors.