Dubai has been named the world’s top location for greenfield foreign direct investment (FDI) projects for the fourth consecutive year, according to Financial Times Ltd.’s ‘fDi Markets’ data.
Dubai received AED 52.3 billion ($14.24 billion) in anticipated FDI capital in 2024, a 33.2 percent rise from AED39.26 billion ($10.69 billion) in 2023, and the biggest FDI value recorded in a single year for the emirate since 2020.
Record-breaking feat
Dubai received a record-breaking 1,117 greenfield FDI projects in 2024, the most in its history. According to DET’s Dubai FDI Monitor, Dubai reached a historic milestone in FDI attraction with 1,826 announced FDI projects, up 11% from 1,650 in 2023. This is the largest overall number of announced FDI projects ever recorded by the emirate. FDI is expected to provide 58,680 jobs in 2024, up 31% from 44,745 in 2023.
“Dubai’s ability to steadily consolidate its status as a leading global destination for foreign direct investment reflects its commitment to delivering exceptional value to investors worldwide. The city’s ranking as the world’s No. 1 destination for attracting greenfield FDI for the fourth consecutive year is a testament to its ability not only to set new global benchmarks for sustained, rapid growth but also to continuously evolve its investment proposition in response to changes sweeping the international market,” said His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai.
Dubai’s forward-thinking strategies have transformed the emirate into a global FDI hub, with the city’s appealing business environment, favorable rules, infrastructure, and strategic position making it a top choice for investors. According to the Financial Times Ltd’s ‘fDi Markets’ data, the city was ranked fourth globally for attracting Greenfield FDI capital in 2024, up from fifth in 2023, as well as first in the Middle East and Africa (MEA) region, indicating a significant increase in its investment appeal.
Types of investments
Regarding investment types for Dubai’s FDI projects, the new form of investment (NFI) recorded an impressive 23% increase. This reflects increased investors’ confidence in an innovative approach to capital allocation, but reinvestment increased by 98%. Venture capital has increased FDI by 39%, boosted Dubai’s position as a thriving hub for startups and high-growth companies, and mergers and acquisitions have increased by 8%, indicating strong interest in strategic partnerships and market integration.
Top sources
According to the Dubai FDI Monitor, the top five source nations for FDI capital account for 63% of total expected flows into Dubai in 2024. India was the leading source country for total estimated FDI capital into Dubai, accounting for 21.5%, followed by the United States (13.7%), France (11%), the United Kingdom (10%), and Switzerland (6.9%). In terms of overall announced FDI projects in Dubai, the top five source nations amounted for about 55%, with the United Kingdom (17%), followed by India (15%), the United States (14%), France (4.5%), and Italy (4%).
Key sectors
In 2024, the top five sectors contributed for 53% of all expected FDI capital flows into Dubai, while the top five sectors by FDI projects represented for 68% of all announced FDI projects. According to FDI capital, the biggest sectors were hotels and tourism (14%), real estate (14%), software and IT services (9.2%), building materials (9%), and financial services (6.8%). The leading sectors for FDI projects were business services (19.2 percent), food and drinks (16.5 percent), software and information technology services (14.3 percent), textiles (9.6 percent), and consumer items (8.3 percent).
His Excellency Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), said: “The influx of new capital underscores the confidence that investors, multinational corporations, and global talent place in our resilient ecosystem, bolstered by the collaborative spirit of public-private partnerships and the transformative goals of the Dubai Economic Agenda, D33. Looking ahead, Dubai remains committed to setting new benchmarks in global competitiveness through forward-thinking regulations, cost-effective energy solutions, and strategic global partnerships, as we continue building an ecosystem that empowers businesses to thrive. Our focus on innovation, startup incubation, and digital-first infrastructure ensures that Dubai will continue to be the destination of choice for those seeking growth, opportunity, and success in the global economy. Together, we are shaping a city that stands as the world’s best place to visit, live, work and invest in.”
