UAE Outperforms in Global FDI Landscape Amid Worldwide Decline

Fatima Al Qasimi
5 Min Read

The global decline of direct investments of foreign direct investments (BDI) in 2024, the United Arab Emirates remains striking as one of the must -spring and attractive investments in investigations worldwide, which reduces its position as regional and international hub for diversified capital flows.

According to the UNCTAD World Investment Report 2025, the global BDI fell by 11% on an annual basis to USD 1.53 trillion, driven by stricter financial circumstances, rising protectionism and geopolitical uncertainty. Developed economies wore the victim of this decination, in which Europe’s BDI fell 58%. The DBI, on the other hand, remained stable in developing countries and the VAE emerged as one of the world’s best -performing countries.

Vae comes forward as a global DBI leader

In 2024 the BDI rose to West Asia by 4.7%, with the VAE attracting a record USD 45.6 billion-on 48.7% years on an annual basis. These strong achievements brought the VAE to the 10th position ball in terms of BDI inflow, an increase in the 11th in 2023 and 21st in 2022. The country is also second in second place in the second place announced Greenfield Project Volume, with 1,359 projects with a value of USD 15.6 billion.

This trend underlines the growing trust of investors in the economic reforms of the VAE, the transparency of the regulations and the readiness of infrastructure. Large sectors that control this inflow are technology, logistics, clean energy, advanced production and Financial services.

FDI Poison Saudi Arabia, on the other hand, fell by 31% to USD 15.7 billion, making the Kingdom 20th worldwide. Egypt led in North Africa, powered by the Al-Hikma Mega project, which registered Africa to 75% BDI growth, even after correction for the weight of the project.

Greenfield Projects and Finance -fee

While international project financing agreements Sharpy in most regions distributed, West -Asia defined the pace. The total deal value in the region increased by 5% to USD 78 billion, largely support from infrastructure and energy obligations in the VAE, Saudi Arabia and Iraq.

Worldwide announcements from Greenfield Reden modest (+3%), with the VAE a top bid. This indicates a continuous long-term investor for the emirates, especially in semiconductors, digital economy and EV-related components.

Vae Treasury Holdings reflects global confidant

Investors hunger for the macro for views of the VAE are also clearly in his increased foreign companies. The interests of the VAE of the American treasury rose by 8.1% month by month in April 2025 and 61.6% on an annual basis, up to a USD 112.9 billion. This makes the VAE the 19th largest global holder, which catches up with Germany.

Such companies indicate the trust of strategic capital allocation in both the economic stability of the VAE and the global financial market positioning – a compiment reflected by institutional investors and sovereign asset funds.

Non-oil economy leads the growth of the VAE GDP

The The real GDP of the VAE grew by 4.0% in 2024Reaching AED 1,776 trillion, with non-oil sectors contribution 75.5% of the total output. Non-oil BBP rose by 5.0% on an annual basis to AED 1,342 trillion.

Main growth sectors included:

  • Transport and storage (+9.6%)
  • Construction (+8.4%)
  • Finance and insurance (+7.0%)
  • Hospitality and food services (+5.7%)
  • Real estate (+4.8%)

This implementation was supported by upgrades of urban infrastructure, free trade agreements (tribes), growing foreign trade and the increasing global role of VAE in logistics, tourism and financial services.

The continuous success of initiatives such as “Make In The Emirates”, in combination with uniform GCC travel plans and stable oilbeat, good for the expansion of the Sustaned Non Oil sector.

Outlook: A Global FDI Safe Haven

As the global BDI is increasingly fragmented and exposed to policy shifts and geopolitical uncertainty, the strong, diversified economy and investor -friendly regulations of the VAE position it as a safe, well -performing destination for international capital.

With existing progress in Greenfield Investments, sector diversification and macro -economic reforms, the VAE is ready to transfer to the regional leader and the global FDI magnet the current decade.