UAE ranks second globally for Foreign Direct Investment
Pro-investment reforms, the NextGen FDI programme, and a growing network of Cepa trade deals are driving the country’s long-term FDI growth ambitions.
Dubai Desk
The Dubai Desk reports on major developments across the UAE, covering news, culture, business, and social trends shaping the region.
The UAE ranked second globally for preferred FDI destinations in 2024, attracting AED 167 billion and topping the world in FDI performance relative to its economy size.
The UAE has been ranked as the world’s second most preferred destination for foreign direct investment (FDI), trailing only the US and ahead of the UK, India, and Germany, according to a new report from FDI Intelligence cited by state news agency Wam.
The Emirates attracted AED 167 billion (US$45.5 billion) in FDI last year and aims to grow that figure to AED 1.3 trillion by 2031. It also topped the Greenfield FDI Performance Index for 2024, ranking as the world’s best performer relative to the size of its economy — receiving more than 14 times the expected volume of FDI projects. Namibia and Costa Rica followed in second and third place.
“Investor confidence in the Gulf’s business hub remained strong last year,” the report noted, crediting the UAE’s ability to attract large-scale projects despite global economic uncertainty.
The country’s appeal has been boosted by pro-investment reforms, including 100% foreign ownership of companies, eased visa rules, and incentives for SMEs. Initiatives such as the NextGen FDI programme — which streamlines licensing, accelerates visa issuance, and offers banking and leasing incentives to tech firms — have further strengthened its position.
The UAE’s expanding network of Comprehensive Economic Partnership Agreements (Cepa) has also played a key role, reducing tariffs, removing trade barriers, and encouraging bilateral investment in priority sectors.
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