Posted inEconomy

UAE Leads MENA and GCC in FY25 Global FDI Rankings

Abu Dhabi maintains its top ten position in global FDI rankings (UNCTAD), leading the MENA and GCC as the region’s top FDI recipient and provider in FY25.

Abu Dhabi Corniche
Abu Dhabi Corniche

Foreign direct investment (FDI) into the United Arab Emirates rose approximately 6% in 2025, reaching $48.24B, making it the ninth largest recipient globally according to findings from the United Nations Conference on Trade and Development (UNCTAD).

The UAE maintained its position ahead of Saudi Arabia at 13th to become the leading FDI destination in the Middle East, highlighting its significant role in the MENA and GCC investment climate.

UAE Sustains Greenfield Position

The UAE maintained its position from FY24, ranking second globally in terms of greenfield project count for the third consecutive year, as reported by the UAE Government Media Office.

This performance is attributed to a surge in greenfield investments, with the country securing funding for 1,562 projects as part of its National Investment Strategy 2031, which aims for $65B in annual FDI inflows.

FDI allocated to greenfield projects constituted about 45% of total inflows, while mergers and acquisitions accounted for 8%. Average funding for start-ups nearly doubled to $9.2M, indicating a robust entrepreneurial ecosystem.

The manufacturing sector attracted 30 per cent of investment inflows, while telecoms and digital infrastructure received 29 per cent, underscoring a diversification of the investment portfolio.

Outbound FDI Figures

The UAE displayed a strong presence in outbound FDI, ranking among the top ten globally with over $63B in investments for 2025. However, this was a decline from the previous year’s $77B.

UNCTAD suggested that geopolitical tensions and macroeconomic uncertainties could pose challenges for future investment prospects, particularly in capital-intensive sectors like infrastructure and energy.

FY25 FDI Recovery

Worldwide, aggregate FDI rose 6 per cent to $1.6T in FY25, marking a recovery after two years of decline.

However, the growth in developing economies was modest, reinforcing the uneven nature of the global investment climate.

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