UAE achieves record FDI inflows of Dh177.3 billion in 2025, up 6%

The UAE attracted a record Dh177.3 billion in inbound foreign direct investment in 2025, the fourth consecutive year of record inflows. It now ranks 9^th globally among FDI destinations, marking a 6 per cent year-on-year increase, according to the United Nations Conference on Trade and Development (UNCTAD)’s World Investment report.  

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, wrote on an X post on Wednesday that the country’s goal is to increase FDI stock to Dh2.2 trillion by 2031 and attract an annual Dh240 billion of FDI inflows. Total FDI stock reached Dh1.17 trillion at the end of 2025.

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“These figures are not merely economic indicators, but the outcome of a national vision, the dedication of a unified team and the global trust placed in a nation that turns ambition into reality and opportunities into achievements. We pray that what lies ahead for the UAE is even greater,” he said.

65,000 jobs through greenfield

While greenfield projects remain the dominant type of FDI entering the UAE, at close to 45 per cent, mergers and acquisitions gained traction to represent 8 per cent, and reinvestment stood at 11.2 per cent.

A greenfield investment is when a parent company launches a business operation abroad by building everything up on its own. Greenfield FDI reflected both volume and capital depth, with 1,562 projects announced for a combined Dh125.2 billion in capex, or 1.8 per cent of the global total.

Greenfield FDI generated more than 65,000 jobs in 2025 across various sectors, including transportation and warehousing, business services, software and IT, automotive manufacturing, financial services and communications.

The three leading greenfield sectors include: manufacturing (30 per cent), communications (29 per cent), anchored by Stargate UAE – OpenAI’s first international deployment, a 1 GW AI compute cluster developed by Abu Dhabi-based G42, real estate (7 per cent), propelled by wealth migration and the UAE's consolidation as a preferred domicile for global talent.

The startup ecosystem also matured in parallel with M&A: funding rounds grew larger, with the average deal size reaching around Dh 33.8 million, nearly double the prior level, as companies moved from getting started to scaling up.

UAE leading the charge

While global FDI returned to growth in 2025 after three years of decline, reaching approximately Dh5.9 trillion, the recovery saw capital consolidate into fewer economies, fewer sectors, and fewer but larger commitments. The Middle East led globally with greenfield capex growth of 72.4 per cent, with the UAE its primary driver, contributing 38 per cent of regional greenfield capex.

“Over the past years, the UAE’s consistency in attracting record levels of FDI inflows – expanding at a compound annual growth rate of 24 per cent between 2021 and 2025 - has reflected the strength of the choices we have made as a nation,” the UAE’s Minister of Investment, Mohamed Hassan Alsuwaidi, said.  

“We are committed to strengthening confidence in this trajectory by continuing to advance our policies and regulations, reducing barriers to entry, improving our operating environment, and expanding our global partnerships. Looking ahead, the National Investment Strategy sets a clear direction through 2031: to consolidate our position among the world's leading investment destinations, and to achieve Dh240 billion in annual FDI inflows,” he added.

Written by

Hind Aldah

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Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.