Dubai Ranked World’s Top Destination for Foreign Direct Investments

Greenfield Foreign Direct Investment is a form of investment in which a business establishes a new business operation, working office space, factory, or facility in a foreign country. It is basically when a parent company establishes a subsidiary in a foreign country to build new business operations, facilities, and job opportunities.

Dubai has ranked  #1 globally for Greenfield Foreign Direct Investment (FDI) projects for the fourth consecutive year. The city recorded 1,117 Greenfield FDI projects in 2024, 47 projects more than in 2023 (1,070). Dubai has solidified its position as a prominent player in the international investment flows by accounting for 6.2% of total Greenfield FDI projects. 

From the above graphical representation, it is evident that Dubai stands tall at 1,117 Greenfield FDI projects, which is way more than the other global cities, such as Singapore (442), London (384), New York City (200), Bangalore (197), etc.

Dubai achieved its leading position as the top destination for Foreign Direct Investment across different clusters:

• Industrial Cluster
• Transportation & Warehousing Cluster 
• Tourism FDI 
• E-commerce 
• Cybersecurity 
• Consumer Goods Cluster 
• Food & Beverages Cluster 

This highlights the city’s commitment to its investors and strong economic diversification.  

Dubai continues to offer unmatched opportunities in the global economic arena, positioning itself as an essential destination for emerging businesses to invest and engage their intellectual minds towards discovering this market as a foreign direct investment (FDI) hub. 

The city’s thriving position as a global leader in these clusters reflects its well-developed infrastructure, robust investments, commitment to food security, innovations, and rapid digital transformation, strengthening it as a powerhouse of job creation and opportunities.

In 2024, Dubai recorded its highest number of FDI projects since 2015, setting a new standard with 1,826 total announced FDI projects, marking an 11% increase from 2023

Foreign Investment Types

• Comparison of the Robust growth across the various Foreign Investment Types:
• Greenfeld FDI (wholly owned) projects - 0.2% increase, 
• New Forms of Investments (NFIs) surged by 23%
• Reinvestments nearly doubled
• VC-backed FDI - 39% growth 
• Mergers & Acquisitions (M&As) - 8% increase in record
• 1 Greenfield Joint Venture project

Dubai’s share of global FDI projects in Advanced Information Technologies increased from 7.3% (135 projects) in 2023 to 8% (146 projects) in 2024, signalling a hike and further maintaining its global position as the top destination for AIT-related FDI projects. 

Moreover, another interesting parameter to be noted is that of all the EDI projects announced in 2024, 54% were High-Medium technology, signifying the city’s dedication to technology innovation and digital transformation. The AIT FDI data statistics tell us about the rapidly growing investor confidence and Dubai’s ability to attract high-value, technology-driven investments to ensure stability, economic sustainability, and enhanced global competitiveness.

Dubai rose to the 4th position globally from the 5th position, and claimed the top position in the Middle East Africa region from 2nd to 1st in attracting Greenfield FDI capital. In 2024, Dubai recorded a value of AED 52.3 billion (USD 14.24 billion) in FDI capital, representing a 33% increase from AED 39.26 billion (USD 10.69 billion) recorded in 2023.

The year 2024 marked a significant rise and shift in Dubai’s FDI trajectory as the city recorded the highest FDI value ever recorded in its history since 2020, showcasing the emirate’s potential growth and hunger to become a prominent investment hub and a top destination for foreign Direct Investments (FDI). Furthermore, the Global foreign direct investment (FDI) flows reached an estimated value of $1.4 trillion in 2024, reporting an evident increase of 11%.

As a top destination for Foreign Direct Investment, Dubai recorded an estimated value of 58,680 new jobs created through FDI, reporting a 31% surge in 2024, from 44,745 in 2023. Dubai was reported as the 3rd city globally positioned for creating new jobs through FDI attraction in 2024, from the 4th position in 2023. 

Core sectors in which Dubai recorded new job creation

• Electronic components
• Financial Services 
• Food & Beverages
• Tourism 
• Transportation & Warehousing 
• Headquarter-related FDI projects  

This has helped Dubai to reinforce its position as a thriving global investment hub and economic fundamentals, making the city a strong and attractive destination for long-term growth and development.

Ranking of the Top 5 FDI capital sourcing countries

1. India - 21.5% 
2. United States - 13.7% 
3. France - 11% 
4. United Kingdom - 10% 
5. Switzerland - 6.9%, 
6. constituting 63% of the total estimated FDI inflows.

India, for the first time, emerged as the top country sourcing FDI Capital of 21.5% in Dubai, particularly in the real estate sector. The United States and Switzerland concentrated their FDI mainly on software & IT services and hotels & tourism. 

Ranking of the Top 5 FDI projects sourcing countries

1. United Kingdom - 17%
2. India - 15% 
3. United States - 14% 
4. France - 4.5% 
5. Italy - 4%,

constiuting 55% of the total announced FDI projects.

The top source country for FDI projects is the United Kingdom, with focus on the hotels & tourism and business services sectors, leading to an increase in the number of FDI projects by 23% in 2024 compared to 2023, while FDI projects from India increased by 10.4%, United States by 1.2% and Italy by 25%.

These sectors accounted for 53% of the total estimated FDI capital into Dubai in 2024:

1. Hotels & Tourism - 14% 
2. Real Estate - 14% 
3. Software & IT Services - 9.2%
4. Building Materials - 9%  
5. Financial Services - 6.8%

These sectors accounted for 68% of the total announced FDI projects in Dubai in 2024:

1. Business services - 19.2% 
2. Food and Beverages - 16.5% 
3. Software & IT services - 14.3% 
4. Textiles - 9.6%  
5. Consumer Products - 8.3%

The top 5 business functions accounted for 77% of the total estimated FDI capital in Dubai in 2024:

1. Construction - 35.4% 
2. Retail - 12% 
3. Manufacturing - 11.1%
4. Business Services - 10%  
5. Logistics, Distribution & Transportation - 8.8% 

The top 5 business functions accounted for 94% of the total announced FDI projects in Dubai in 2024:

1. Retail - 35.4%
2. Business Services - 32.7% 
3. Sales, Marketing & Support - 21.4% 
4. Headquarters - 2.7%  
5. Construction - 2%

With all the data statistics and insights presented above, we can clearly understand and witness Dubai’s growth and emergence as a top destination for Foreign Direct Investment. The city has become a popular hotspot for many foreign investors, who are even willing to establish their subsidiary businesses. 

Moreover, the reasons for this rapid growth and development are Dubai’s strategic planning and intellect to launch robust projects such as the Dubai Economic Agenda D33. This initiative is expected to double Dubai’s GDP and drive a huge amount of FDI growth. D33 targets an FDI of AED 650 billion ($177 billion) over the next 10 years with investments in human capital, advanced technology, and infrastructure.  

The Future Outlook of FDI 2025

Dubai’s future outlook for 2025 looks relatively positive and productive with moderate growth driven by economic stability, technology advancements, and geopolitical shifts. This city is expected to continue attracting investment, especially in the high-tech and innovative sectors.  

The statistics contribute to the conclusion that by the end of 2025, Dubai will remain an attractive and top destination for Foreign Direct Investment, with strong investor interest in long-term investments.