UAE sees huge increase in foreign direct investment in 2024

The UAE has been named the world’s 10th largest recipient of foreign direct investment (FDI) in 2024, drawing in AED167.6bn ($45.6bn) in inflows, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025.

This represents a 48% increase year-on-year; the UAE also accounted for 37% of all FDI inflows into the Middle East region in 2024.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai said: “Out of every $100 invested in the region, $37 comes to the UAE. The country also ranked second globally, after the United States, in the number of newly announced foreign direct investment projects.

“Our next goal is to attract AED1.3tn ($354bn) in foreign direct investment over the next six years.”

He added: “Our foundation is strong, our future is promising, and our focus on our goals is crystal clear. Our message is simple: development is the key to stability, and the economy is the most important policy.”

The UAE also ranked second globally – after the United States– for the number of newly announced greenfield FDI projects, with 1,369 new initiatives valued at AED53.3bn ($14.5bn).

In contrast to a global slowdown in greenfield project growth (0.8%), the UAE achieved 2.8% growth.

The top sectors for greenfield FDI in 2024 included: software and IT services, 11.5%; business services, 9.7%; renewable energy, 9.3%; oil, gas and coal, 9%; and real estate, 7.8%.

Mohamed Hassan Alsuwaidi, Minister of Investment, said: “Recording this unprecedented level of FDI inflows to the UAE is an achievement that reflects the strategic choices made by our wise leadership and its long-term vision to establish the UAE as a leading global investment destination.

“The Ministry of Investment is committed to developing a comprehensive regulatory and legislative framework aligned with our national priorities, meeting investors’ needs, and providing a competitive business environment that attracts global capital.

“The UAE’s investment ecosystem has become a global model, thanks to its stability, transparency, trade openness, and ease of doing business. Through the National Investment Strategy 2031, we continue to set ambitious goals to cement the UAE’s position as a leading global FDI destination.

“We provide a clear pathway to drive sustainable growth, double investment opportunities, diversify priority sectors, and open new horizons for global companies seeking innovation and expansion in future markets.”

Google contributes 1% of UAE’s GDP

US tech giants are contributing billions to the UAE economy, with Google alone contributing about 1 per cent of the Emirates’ gross domestic product according to the global tech company.

Google contributed Dh21.8 billion ($5.93 billion) to the UAE’s economy in 2024, the tech major said in its Economic Impact Report for the Emirates. Google’s platforms, which include Search, Ads, Play, YouTube and Maps, support businesses, content creators, developers and government entities.

However, as their presence expands, a behavioural shift led by artificial intelligence tools is quietly reshaping how people work, search and consume information, the report said.

From cloud infrastructure and AI tools to payment platforms and productivity apps, companies such as Google, Microsoft and Apple are playing an increasingly central role in the UAE’s digital transformation.

Newly released economic impact reports from Google and Microsoft highlight the scale of this investment.

Google’s report shows widespread adoption, with 94% of adults in the UAE using Google Search at least once a month to compare prices, and 97% of public sector workers crediting Google’s AI tools with improving their productivity.

Microsoft’s study, released by the International Data Corporation, estimated that the company and its partners will generate Dh273 billion in new revenue for the UAE by 2028. This is supported by Dh18.7 billion in data centre spending and the creation of more than 152,000 jobs.

This includes more than 41,800 skilled IT roles, further solidifying the UAE’s position as a hub for advanced digital services and innovation.

This surge in tech investment aligns with the UAE’s National Artificial Intelligence Strategy 2031, which aims to position the country among the top AI nations globally and have the technology contribute 20% to non-oil GDP by 2031.