Dubai has once again been recognized as the world’s leading destination for greenfield foreign direct investment (FDI) projects, achieving this accolade for the fourth consecutive year, according to Financial Times Ltd.’s ‘fDi Markets’ data.
In 2024, the emirate attracted an estimated AED 52.3 billion ($14.24 billion) in FDI capital, marking a 33.2% increase from AED 39.26 billion ($10.69 billion) in 2023. This represents the highest FDI value recorded in a single year for Dubai since 2020.
Record-Breaking Achievements
Dubai witnessed a historic influx of 1,117 greenfield FDI projects in 2024, the highest in its history. Data from the Dubai Department of Economy and Tourism’s (DET) Dubai FDI Monitor indicates a total of 1,826 announced FDI projects, an 11% increase from 1,650 in 2023, setting a new record for the emirate. These investments are expected to generate approximately 58,680 jobs in 2024, a 31% rise from 44,745 in 2023.
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, commented:
“Dubai’s consistent ranking as the world’s top destination for attracting greenfield FDI for the fourth consecutive year underscores its commitment to delivering exceptional value to investors worldwide. The city not only sets new global benchmarks for sustained, rapid growth but also continually evolves its investment proposition in response to global market dynamics.”
Strategic Initiatives and Global Standing
Dubai’s forward-thinking strategies have transformed the emirate into a global FDI hub. The city’s attractive business environment, favorable regulations, state-of-the-art infrastructure, and strategic location make it a preferred choice for investors. According to Financial Times Ltd’s ‘fDi Markets’ data, Dubai advanced to fourth place globally for attracting greenfield FDI capital in 2024, up from fifth in 2023, and secured the top position in the Middle East and Africa (MEA) region, reflecting a significant enhancement in its investment appeal.
Diverse Investment Types
The variety of investment types for Dubai’s FDI projects in 2024 is noteworthy:
- New Forms of Investment (NFI): Saw a 23% increase, reflecting investors’ growing confidence in innovative capital allocation approaches.
- Reinvestment: Experienced a substantial 98% surge, indicating strong commitment from existing investors.
- Venture Capital: FDI backed by venture capital rose by 39%, bolstering Dubai’s position as a thriving hub for startups and high-growth companies.
- Mergers and Acquisitions (M&As): Increased by 8%, signaling robust interest in strategic partnerships and market integration.
Leading Source Countries
The top five source countries for FDI capital accounted for 63% of total estimated inflows into Dubai in 2024:
- India: 21.5%
- United States: 13.7%
- France: 11%
- United Kingdom: 10%
- Switzerland: 6.9%
In terms of the total number of announced FDI projects in Dubai, these five countries contributed approximately 55%, with the United Kingdom leading at 17%, followed by India (15%), the United States (14%), France (4.5%), and Italy (4%).
Prominent Sectors
In 2024, the top five sectors accounted for 53% of all estimated FDI capital flows into Dubai, while the leading five sectors by FDI projects represented 68% of all announced FDI projects:
- By FDI Capital:
- Hotels and Tourism: 14%
- Real Estate: 14%
- Software and IT Services: 9.2%
- Building Materials: 9%
- Financial Services: 6.8%
- By FDI Projects:
- Business Services: 19.2%
- Food and Beverages: 16.5%
- Software and IT Services: 14.3%
- Textiles: 9.6%
- Consumer Products: 8.3%
His Excellency Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), stated:
“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. 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.”
