Dubai has been ranked the world’s top destination for greenfield Foreign Direct Investment (FDI) projects for the fourth successive year, according to the Financial Times ‘fDi Markets’ data.

Greenfield FDI is a form of FDI where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

In 2024, Dubai attracted AED52.3bn ($14.24bn) in estimated FDI capital, a 33.2% increase from AED39.26bn ($10.69bn) in 2023, marking the highest FDI value recorded to date in a single year for the emirate since 2020.

Dubai attracted a record-breaking 1,117 greenfield FDI projects in 2024, the highest number in its history.

A total 58,680 estimated jobs were generated through FDI in 2024, a 31% increase, from 44,745 jobs in 2023.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, said: “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 number-one 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.

“This success is the result of a strategic vision that keeps pace with economic and technological transformations, aligned with the ambitious objectives of the Dubai Economic Agenda D33 to double the size of the emirate’s economy by 2033 and establish it as one of the world’s top three urban economies.”

Sheikh Hamdan added: “We remain committed to fostering a culture of innovation, enhancing economic competitiveness, and building an exceptional ecosystem that empowers businesses and investors to achieve growth and prosperity.”

Dubai’s forward-looking strategies have transformed the emirate into a global hub for FDI, with the city’s attractive business environment, favourable regulations, infrastructure, and strategic location making it a preferred destination for investors.

In 2024, the city was ranked fourth globally for attracting greenfield FDI capital, up from fifth position in 2023, while also claiming the top spot in the Middle East and Africa (MEA) region, according to the Financial Times data.

The city also advanced from fourth to third globally in terms of jobs created through inward FDI in 2024, securing the top position in MEA.

The data also showed that Dubai experienced a surge in talent attraction across key sectors, including business services, software IT services, real estate, logistics, financial services and consumer products.

For the third consecutive year, Dubai was also ranked first globally in the attraction of Headquarter (HQ) FDI projects, with 50 projects in 2024.

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), said: “The influx of new capital also 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.”

He added: “Our focus on innovation, start-up 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.”

The Financial Times data also showed that venture capital-backed FDI increased by 39%, reinforcing Dubai’s position as a thriving hub for start-ups and high growth ventures. And mergers and acquisitions (M&As) rose by 8%, demonstrating strong corporate interest in strategic partnerships and market consolidation.

Dubai FDI Monitor, published by DET, revealed that the top five source countries for FDI capital accounted for 63% of the total estimated flows into the Emirate in 2024.

India was the top source country with the highest 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%).

Based on FDI capital, the leading sectors were hotels and tourism (14%); real estate (14%); software and IT services (9.2%); building materials (9%); and financial services (6.8%).

The deep integration of artificial intelligence (AI) into the manufacturing sector in China and across the globe has become a key driving force for high-quality development, according to a leading government figure.

Zhang Fan, a deputy to the National People’s Congress, highlighted the rapid evolution of AI technologies — including large language models, generative AI and embodied AI — saying that they are reshaping global industrial competition and integrating into various industries. Zhang is also director of the science and technology innovation department of China Electrical Equipment Group.

He said: “With the rise of domestic companies like DeepSeek and Unitree Robotics, AI is being pushed toward an era of democratization, breaking the monopoly of Western tech giants and fuelling rapid advancements in AI-powered devices such as smart glasses and robots,” he said in an interview with the China Daily website.

According to this year’s Government Work Report, under the AI Plus initiative China will work to effectively combine digital technologies with the country’s manufacturing and market strengths. The country will support the extensive application of large-scale AI models and vigorously develop new-generation intelligent terminals and smart manufacturing equipment, the report said.

While China has introduced policy frameworks such as the next-generation AI development plan, Zhang argued that manufacturing, spanning 41 sub-industries, requires more precise and sector-specific policy implementation.

Using the electrical equipment manufacturing sector as an example, Zhang pointed out gaps in industry-level AI roadmaps, insufficient guidance for high-value applications and a lack of collaborative mechanisms for tackling common technological challenges.

“The sector needs a clear, tiered national strategy — short-term breakthroughs in foundational applications, medium-term advances in core scenarios and long-term development of a tech system.”

Zhang added that a major concern is inefficiency in industry-specific AI models, saying that industrial AI training is constrained by poor data availability and limited sharing.

Added to that, Zhang also underscored a severe shortage of interdisciplinary talent proficient in both AI and industrial processes. “There is a disconnect between academia and industry, and traditional manufacturing companies lack structured AI talent training mechanisms.”

To address the issues, Zhang said it is necessary for the nation to accelerate AI development planning for key industries. “Given its strategic importance to energy security and China’s dual-carbon goals, the electrical equipment manufacturing sector should have a dedicated AI development roadmap,” he said.

Meanwhile, he said AI innovation hubs should be formed to consolidate resources and develop industry-specific AI models that enhance efficiency and competitiveness.

Innovators benefit from tax breaks

In order to help encourage technological innovation and high-end manufacturing, China has cut 2.63 trillion yuan ($361 billion) in taxes and fees on those operating in the sectors.

Latest data from the State Taxation Administration, the country’s top tax authority, showed that tax breaks for companies’ research and development spending and technology transfers totalled 806.9 billion yuan in 2024.

Tax incentives for high-tech enterprises and emerging industries — including a 1%5 corporate income tax rate and exemptions on new energy vehicle purchases — added up to 466.2 billion yuan in 2024.

To tackle bottlenecks in core technologies and attract talent in key sectors, China offered an additional 132.8 billion yuan in value-added tax deductions.

Li Xuhong, deputy head of the Beijing National Accounting Institute, said: “Such measures will help taxpayers fully save on operating costs through R&D expense deductions. Relief will further stimulate their vitality and drive innovation capability, all of which will be strong drivers of the development of the country’s private sector.”

The Chinese tax authority’s efforts to stimulate innovation are bearing fruit. VAT invoice data showed that last year, sales revenue in high-tech industries grew 9.6 percentage points faster than the national average. Revenue from technology commercialization services jumped 27.1% year-on-year.

The digital economy also saw steady gains, with core industries expanding 7.1% year-on-year and enterprise procurement of digital technologies rising 7.4%, reflecting deepening integration of digital tools in industrial production.

On the other hand, manufacturing, a cornerstone of the economy, grew steadily with sales revenue increasing 2.2 percentage points faster than the national average.

Advanced sectors saw particularly strong growth, with sales in computer manufacturing up 14.4% year-on-year, telecommunication and radar equipment up 19%, and intelligent equipment manufacturing up 10.1%.

India needs to ramp up its bilateral relations for trade and investment, India’s Finance Minister Nirmala Sitharaman has said, adding that the government “is making all efforts to make India an engine of global growth” in a fast-changing world.

She said: “Bilateralism is now taking the top of the agenda… It is for us to ramp up our bilateral relations with many countries, not just for trade, not just for investment, but also for strategic relations.”

Sitharaman said that global trade was undergoing a complete reset, claiming that “the terms and references with which all of us played trade, with some kind of an anchor in the World Trade Organization, are no longer available”.

She added: “So if the WTO is getting weakened or multilateral institutions are not being effective… bilateral arrangements are going to be the order of the day in terms of trade.” She also said that, sensing the movement toward a new world, India has initiated bilateral trade talks with many nations including the UK and is planning a bilateral trade agreement with the United States.

“I think these are very interesting yet challenging times… India has to make a meaningful contribution to the global reset, as much as continuously make all the efforts to make India move up the ladder, both in terms of per capita income, and also in terms of a business destination, where talent can move, investors can move for the global good,” Sitharaman said.

The Finance Minister’s words were echoed by Prime Minster Narendra Modi, who said the US and India have set a target of doubling their bilateral trade to $500 billion by 2030, adding that both parties, adding: “Our teams will work on concluding, very soon, a mutually beneficial trade agreement.”

Modi made the comment after a meeting with President Donald Trump in Washington. Modi said the US and India would work together on artificial intelligence and semiconductors, and focus on establishing strong supply chains for strategic minerals.

A Trump administration official told reporters earlier that US and Indian officials were also moving forward with talks on a bilateral trade deal and they hoped to have a deal in place this year.

Trump told the news conference India had announced a reduction of tariffs on US goods and said he and Modi would begin talks on disparities on trade with the goal of signing an agreement.

Trump said he had discussed India’s high tariffs during his first term, but was unable to extract any concessions. He said that under the new reciprocal tariffs system he announced recently, the US would simply charge the same tariff rates that India charged.

Talks ongoing with the EU over trade pact

India is also in discussion with the 27-nation grouping — the European Union, for a free trade pact.

The European Union (EU) is seeking lower tariffs on whiskey, wine, cars, and other key products as part of negotiations for a Free Trade Agreement (FTA) with India. The demand was a central topic during the visit of the EU’s College of Commissioners, led by European Commission President Ursula von der Leyen, to India at the end of February.

According to EU officials, trade and technology were high on the agenda as both sides seek to finalize a commercially meaningful agreement. “India’s market remains relatively closed, particularly for key products of interest to the EU and our industries,” an EU official stated. “We expect stronger commitments from India, not just on tariffs but also on non-tariff barriers and procurement rules.”

EU officials have expressed optimism about reaching a deal but acknowledge that bridging the gap in trade expectations remains a challenge. “We have the largest network of trade agreements in the world, covering 76 countries. India has relatively few such agreements. Finding a middle ground where our high standards and ambitions are reflected in a way that also benefits India will be key,” an EU representative said.

More than 65% of organisations in the Middle East, including the UAE, plan to increase investment in AI in the coming year despite the talent and technology challenges they face, according to a new report.

Published by Deloitte, in collaboration with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the report revealed the immense opportunities presented by artificial intelligence (AI) in the Middle East.

Called ‘The Perfect Storm: A perspective on unlocking AI’s value in Middle East’, the report also shines a spotlight on the challenges organisations face when investing in AI technology and ensuring they fully understand and utilise its potential.

It draws on insights from more than 150 business and technology leaders across the UAE, Saudi Arabia and Qatar, supplemented by interviews with key industry figures. It explores the dynamics of AI adoption while identifying the challenges that hinder progress and the strategies organizations are using to manage risks and maximise value.

While organisations across the Middle East are rapidly increasing AI investments, many lack the foundations needed to realise its full value, the report said.

The research shows more than 80% of organisations feel pressured to adopt AI, yet almost half say they lack the talent and technology capabilities for successful scaling. Despite these challenges, 69% of organisations plan to increase investment in AI technologies in the coming year, according to the report.

Mutasem Dajani, Deloitte Middle East CEO, said: “The GCC region [Cooperation Council for the Arab States of the Gulf] is making substantial investments in AI, driven by strong government commitments. With increasing funding for AI infrastructure and a growing emphasis on developing local talent, the region is positioning itself as a global leader in AI innovation. This transformation is accelerating the shift toward knowledge-based economies, compelling organisations to fundamentally rethink their operations.”

Survey respondents claimed high levels of preparedness for technology infrastructure (71%), talent (68%) and strategy (69%). Risk and governance were slightly lower in terms of feeling highly or very highly prepared (63%). However, when considering only Generative AI (GenAI), global leaders felt much less prepared to address risk and governance, with 41% of leaders reporting they were only slightly or not at all prepared.

Professor Sami Haddadin, MBZUAI’s Vice President for Research, said: “This research highlights an increased focus on developing local AI specialists and practitioners who understand the potential of AI and how to execute implementation, while addressing concerns such as privacy and ethics. The report reveals a critical disconnect – a strong appetite among Middle Eastern organisations to deploy AI outpacing their readiness in terms of talent, strategic planning, and infrastructure.”

In terms of the perceived key benefits of GenAI, 91% of respondents expect increased productivity to be the most transformational benefit. The report found that one in three organisations in the Middle East are spending more than 60% of their AI budget on GenAI, compared with data showing that 72% of global organisations are spending less than 40%. However, not all organisations view AI in a positive light, with 41% seeing AI as a significant threat to their current operating model.

A significant hurdle faced by organisations developing and deploying AI tools is selecting the right technologies, as highlighted by 34% of respondents. Given the complexity of the available AI solutions, it can be difficult for business leaders to know which applications align best with organisational objectives, while another major challenge – difficulty identifying use cases – is closely linked, as organisations grapple with how GenAI can benefit their business.

The report also found:

• UAE leads in adopting IT, digital, and operations-focused AI.
• Most organisations report being in the early stages or proof-of-concept phase of AI adoption, with leading use cases including content generation and summarization.
• Almost 70% of organisations plan to increase headcount for AI roles, emphasising a need for talent growth including upskilling existing staff and attracting AI graduates.
• Organisations see AI’s primary benefits as increased productivity (91%) and efficiency but struggle to measure ROI effectively.
• Data security (65%), regulation compliance (67%) and the talent gap (44%) are among the top concerns for AI implementation.
• Some 34% of respondents faced a significant hurdle selecting the right technologies to develop and deploy AI tools.
• The main reasons for AI model selection are support/access to expertise, accuracy and speed.

China’s state-owned enterprises (SOEs) will actively support emerging industries and accelerate the modernisation of traditional ones to drive economic growth in 2025, the country’s top State-owned assets regulator has said.

Yuan Ye, vice-chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), said the government will encourage central SOEs to drive progress in core as well as emerging technologies, and actively take on major science and technology projects.

Strategic emerging industries in China include sectors such as energy-saving and environmental protection, next-generation information technology, biotechnology, high-end equipment manufacturing, new energy, advanced materials and electric vehicles, the SASAC said.

Yuan said that “central SOEs will be urged to focus on fundamental research with clear goals and work toward mastering and developing more innovative technologies”.

In 2024, the total assets of central SOEs exceeded 90 trillion yuan ($12.28 trillion), a year-on-year increase of 5.9%, while their total profits reached 2.6 trillion yuan, data from the SASAC showed.

Meanwhile, central SOEs invested 2.7 trillion yuan in strategic emerging industries, up 21.8% on a yearly basis.

Lin Qingmiao, head of the SASAC’s bureau of enterprise reform, said the government’s key focus will be on the restructuring and integration of central SOEs, in order to further promote the optimization of the State-owned economy’s structural adjustment going forward.

“We will speed up the allocation of State capital to critical industries related to national security and the lifeline of national economy, public services, emergency response capabilities, public welfare and strategic emerging industries,” said Lin.

“Faced with growing external challenges and uncertainties, it is crucial that SOEs bolster market-oriented applied basic research, improve technological foresight, diversify strategies and gain mastery over more ‘core technologies’,” said Zhou Lisha, a researcher at the Institute for State-owned Enterprises, which is part of Tsinghua University in Beijing.

“Once breakthroughs are achieved in basic research and original innovation, companies are able to reshape industries and market competition, leading to a fundamental transformation in productivity,” said Zhou.

Strengthening innovation capabilities is key for SOEs to effectively compete with established competitors globally, Zhou added.

 New government policies to boost private economy

China’s latest push to bolster the growth of its private-sector economy is expected to shore up business confidence, stabilise market expectations and revitalise the growth of the world’s second-largest economy amid challenges and external uncertainties, say experts and company executives.

They noted that the country has sent a clear signal that it is determined to boost the high-quality development of the private economy through rolling out targeted measures to deal with the difficulties and issues faced by private enterprises.

Their comments came as President Xi Jinping attended a recent symposium on private enterprises in Beijing and delivered a speech, after listening to entrepreneurs.

Zhou Maohua, an analyst at China Everbright Bank, said: “The private sector is a vital force in advancing Chinese modernisation, and it plays an increasingly significant role in stabilising economic growth, expanding employment and bolstering technological innovation.”

Zhou said that a series of supportive measures, which have been introduced to tackle prominent problems facing private enterprises and to improve the business environment, are crucial for boosting confidence and stabilising the expectations of private enterprises.

He noted that the country’s efforts to promote the development of the private sector will be conducive to creating a more stable, transparent and predictable business environment, motivating private enterprises to beef up investment in research and development, and achieving technological breakthrough.

Liu Dian, a researcher at Fudan University’s China Institute, said Xi’s meeting with private entrepreneurs sent a strong signal to the outside world that China attaches great significance to the private economy and is committed to bolstering its high-quality development.