UAE Attracts Record Dh177.3 Billion FDI in 2025, Climbs to Ninth Globally in Investment Destinations

The UAE attracted a record Dh177.3 billion in foreign direct investment inflows in 2025, lifting the country to ninth place globally among destinations for inbound FDI and bringing total FDI stock to Dh1.17 trillion by year-end. The inflows marked a 6% increase from 2024 and represented the fourth consecutive year of record FDI, driven largely by greenfield projects, expansion in manufacturing and communications, and a maturing startup funding environment.

"According to the latest World Investment Report, the UAE continues to solidify its status as a global destination for investment and opportunities," said His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. "In 2025, we attracted a record Dh177.3 billion in FDI inflows, recording a 6% growth, while FDI stock grew to Dh1.17 trillion.”

Context and composition of inflows

Greenfield investment remained the dominant form of FDI entering the country, accounting for close to 45% of total inflows. The UAE recorded 1,562 greenfield projects in 2025 with combined capital expenditure of Dh125.2 billion, equivalent to 1.8% of global greenfield capex. These projects generated more than 65,000 jobs across sectors including transportation and warehousing, business services, software and IT, automotive manufacturing, financial services and communications.

Sectoral breakdown showed manufacturing leading greenfield FDI with a 30% share, while communications accounted for 29%, spurred by demand for digital infrastructure and high-profile projects such as Stargate UAE — OpenAI’s first international deployment — a 1 GW AI compute cluster being developed in Abu Dhabi with G42. Real estate represented 7% of greenfield activity, supported by wealth migration and the UAE’s role as a hub for global talent.

Mergers and acquisitions represented 8% of inflows, and reinvested earnings accounted for 11.2%, indicating a broader investment base that combines new projects, expansion activity and existing operations. Between 2021 and 2025 FDI inflows expanded at a compound annual growth rate of 24%, underlining rapid accumulation of inward capital.

Regional role, startup funding and public measures

• Advanced economies remained top sources of FDI, reflecting investor confidence in the UAE’s regulatory environment, infrastructure and global connectivity.
• Startup funding continued to mature: average deal size rose to $9.2 million (Dh33.8 million), nearly double the previous level, signalling a shift from early-stage formation to expansion rounds.
• The Middle East led global greenfield capex growth at 72.4%, with the UAE contributing 38% of regional greenfield capital expenditure.
• Domestic direct investment in the UAE was estimated at $100–119 billion (Dh367–437 billion), equal to roughly 2.0–2.5 times annual FDI inflows.

"What makes 2025 a distinctive year is not only the scale of inbound capital, but its composition. Investment continued to diversify across sectors, deepening in quality and broadening in geographic origin,” said Mohamed Hassan Alsuwaidi, UAE Minister of Investment.

Looking ahead, the UAE’s National Investment Strategy 2031 sets targets to raise annual FDI inflows to Dh240 billion and increase total FDI stock to Dh2.2 trillion by 2031. The UAE Cabinet approved the National Investment Fund in November 2025 with initial capital of Dh36.7 billion to support attraction efforts and long-term economic growth, underscoring policy measures aimed at sustaining and further expanding inbound investment.