Dubai retains top spot for attracting greenfield FDI projects

The emirate attracted 1,117 greenfield FDI projects worth more than $14.24 billion last year

Dubai's economy grew by 3.1 per cent in the first nine months of last year. Antonie Robertson / The National

Dubai was ranked as the world’s top destination for greenfield foreign direct investment (FDI) projects for the fourth consecutive year, last year, as the emirate continues to attract investment despite global economic headwinds.

Dubai attracted 1,117 greenfield FDI projects worth more than Dh52.3 billion ($14.24 billion), in 2024, a 33.2 per cent increase from 2023, the Dubai Media Office said on Sunday, citing the Financial Times fDi Markets data.

In terms of the greenfield FDI value, this was the highest ever recorded by the emirate in a single year since 2020, and in project numbers, it was the highest ever in its history.

Dubai also announced 1,826 FDI projects last year, up 11 per cent year-on-year, with 58,680 jobs created, a 31 per cent increase compared to the previous year.

“Even amid economic headwinds elsewhere, Dubai continues to rise as a global magnet for investment, enterprise and talent, offering stability, world-class infrastructure, and a dynamic business environment,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence.

The latest data comes as Dubai aims to double the size of its economy to Dh32 trillion over the next decade and establish the emirate among the top three global cities as part of its D33 strategy. The plan aims to support 30 private companies in their push to become so-called unicorns – start-ups worth more than $1 billion.

The D33 agenda also aims to make Dubai a global digital economy leader, the fastest-growing and most attractive global business centre, a hub for sustainability and economic diversification, as well as an incubator for talented Emiratis by 2033.

In the first nine months of last year, Dubai's economy grew by 3.1 per cent, reaching Dh339.4 billion, with growth largely driven by strides in several sectors including the wholesale and retail trade, transport and storage and the financial and insurance activities.

Last year, the emirate was also ranked fourth globally last year for attracting greenfield FDI capital, up from fifth position in 2023, while also claiming the top spot in the Middle East and Africa region, according to the Financial Times fDi Markets data.

The city also advanced from fourth to third globally in terms of jobs created through inward FDI last year, securing the top position in the Middle East and Africa.

For the third consecutive year, Dubai was also ranked top destination globally in attracting Headquarter FDI projects, with 50 projects last year. Regionally, Dubai was ranked number one in greenfield FDI projects, capital, and jobs in the Middle East and Africa region.

Dubai’s share of global FDI projects in Advanced Information Technologies increased from 7.3 per cent in 2023 to 8 per cent last year, the data shows.

Last year, new forms of investments recorded a 23 per cent increase, while reinvestments surged by 98 per cent, highlighting sustained investor confidence and business expansion within the emirate. Venture capital-backed FDI increased by 39 per cent and mergers and acquisitions (M&As) rose by 8 per cent during the period.

India was the top source country with the highest total estimated FDI capital into Dubai, accounting for 21.5 per cent, followed by the US at 13.7 per cent, France with 11 per cent, the UK at 10 per cent and Switzerland with 6.9 per cent.

In terms of total announced FDI projects for Dubai, the UK emerged as the top source country, followed by India, the US, France and Italy, according to the data.

Based on FDI capital, the leading sectors were hotels and tourism, real estate, software and IT services, building materials and financial services, while for FDI projects, the top sectors were business services, food and beverages, software and IT services, textiles and consumer products.

Dubai’s FDI outlook for 2025 "remains positive" amid shifting economic dynamics, the media office said. “The city is expected to continue attracting significant investment, particularly in high tech and innovation-driven sectors.”

"Looking ahead, Dubai remains committed to setting new benchmarks in global competitiveness .... 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," said Helal Almarri, director feneral of the Dubai Department of Economy and Tourism.