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UAE — A prime destination for global investments

The country’s success in attracting investment is evident in its $16 billion of greenfield foreign direct investments, maintaining its global leadership position in FDI relative to GDP

Published: Mon 20 Jan 2025, 2:08 PM

  • By
  • Muzaffar Rizvi

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A beautiful view of Dubai Downtown highlighting Burj Khalifa with Dubai Fountain.

A beautiful view of Dubai Downtown highlighting Burj Khalifa with Dubai Fountain.

The UAE economic growth is projected to lead GCC countries in 2025 as the emirate has bolstered its reputation as a prime destination for global investments in promising sectors like technology, technological infrastructure, and renewable energy.

The UAE economy is set to grow from 4% in 2024 to 5.1% in 2025 and 2026, though non-energy sector growth is expected to moderate slightly from 4.5% to 4.3% due to capacity constraints in key sectors notably tourism, real estate, construction, transportation, and manufacturing. Several factors such as investment in digital and technological sectors, renewable energy, and green initiatives, alongside the UAE’s policy of diversifying investment sources and enhancing climate sustainability, have been bolstering the UAE’s economic outlook.

The country’s success in attracting investment is evident in its $16 billion of greenfield foreign direct investments, maintaining its global leadership position in FDI relative to GDP. Tourism continues to drive growth, with Dubai visitor arrivals increasing 6.3% year-on-year basis in the first nine months of 2024.

The UAE is also likely to retain its status as the world’s leading destination for wealthy migrants. These migrating millionaires, comprising approximately 20% entrepreneurs and company founders, can stimulate the local economy by opening new businesses and providing new employment opportunities.

LONG-TERM TRENDS (%)

Sources: The IMF, World Bank and Focuseconomics
20252026202720282029
Real GDP growth5.15.14.74.44.3
Hydrocarbon growth6.76.75.24.03.5
Non-hydrocarbon growth4.54.54.54.54.5
Inflation 2.12.02.02.02.0
Population growth0.80.70.70.70.7

NUMBERS MATTER

$57,308: Projected GDP per Capita for 2025

$225.5 Billion: Estimated central bank reserves in 2025

Strengths

> Substantial oil reserves

> Highly developed service sector

> Political and economic stability

Sectors to Watch

• Energy

• Real estate

• Tourism

• Trade

• Logistics



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