Dubai has maintained its position as a leading global destination for Greenfield Foreign Direct Investment (FDI) projects, marking its fourth consecutive year at the top, according to data from Financial Times Ltd.’s ‘fDi Markets’. The city’s ability to attract significant FDI reflects its ongoing development as a key economic hub.
In 2024, Dubai saw a notable increase in FDI, with estimated capital reaching AED52.3 billion. This represents a 33.2% rise from the previous year, the highest annual figure since 2020. This growth is further evidenced by a record 1,117 Greenfield FDI projects in 2024, the highest number in the city’s history. The total number of announced FDI projects also reached a new high, with 1,826 projects, an 11% increase from 2023. This resulted in an estimated 58,680 new jobs, a 31% increase from the previous year.
Dubai’s ability to attract investment is attributed to a range of factors, including its strategic location, infrastructure, and business environment. The city has also seen growth in specific sectors, including financial services, artificial intelligence, real estate, and cybersecurity.
The city ranked fourth globally in attracting Greenfield FDI capital in 2024, up from fifth in 2023. It also moved from fourth to third globally in terms of jobs created through inward FDI. Dubai continues to be a leading destination for Advanced Information Technologies (AIT) related FDI projects, holding an 8% global market share.
Key source countries for FDI into Dubai include India, the United States, France, and the United Kingdom. These countries represent a significant portion of the total FDI capital and announced projects.
The city has also maintained its position as the top global destination for Headquarter (HQ) FDI projects for the third consecutive year. This indicates that multinational corporations continue to view Dubai as a strategic location for their operations.
Dubai’s FDI performance is linked to the city’s economic development strategies, including the Dubai Economic Agenda D33. This agenda aims to further enhance Dubai’s position as a global city for business and leisure.
The city has also seen growth in various investment types, including New Forms of Investments (NFIs), reinvestments, venture capital-backed FDI, and mergers and acquisitions (M&As). This reflects a diverse range of investment activities within the emirate.
The top sectors for FDI capital in 2024 were hotels and tourism, real estate, software and IT services, building materials, and financial services. The top sectors for FDI projects were business services, food and beverages, software and IT services, textiles, and consumer products.
Looking ahead, the global FDI outlook for 2025 suggests moderate growth. Dubai’s FDI outlook remains positive, with expectations of continued investment, particularly in high-tech and innovation-driven sectors. The city’s regulatory environment and investment incentives are expected to continue attracting private equity and sovereign investors.
