A. SREENIVASA REDDY (ABU DHABI)
The UAE attracted $48.24 billion in foreign direct investment inflows in 2025, up from $45.64 billion in 2024, ranking ninth globally among host economies, according to the World Investment Report 2026 issued by UN Trade and Development (UNCTAD).
The increase represented a year-on-year rise of about 5.7%, reinforcing the UAE’s position as one of the world’s top 10 destinations for cross-border investment.
UNCTAD’s ranking showed the UAE is ahead of Mexico, India, Australia and Saudi Arabia among the top global host economies.
The UAE also remained a major source of overseas investment. Its outward FDI stood at $63.35 billion in 2025, compared with $77.17 billion in 2024, placing the country ninth globally for FDI outflows.
The UAE’s outward FDI exceeded its inward FDI by about $15.11 billion, underlining its dual role as both a leading investment destination and a significant exporter of capital.
The report said developing Asia has become an increasingly important source of global capital, accounting for one third of global FDI outflows in 2025. China, Hong Kong, Singapore and the UAE were among the top 10 outward investors, reflecting the growing role of Asian and Gulf-based investors in global capital flows.
The UAE also stood out in the global investment policy landscape.
UNCTAD said countries concluded at least 44 international investment agreements in 2025, including 24 bilateral investment treaties and 20 broader economic treaties with investment provisions.
Developing economies were parties to 42 of the agreements signed during the year, with the UAE concluding 15 agreements, the highest number by any country, followed by India and Malaysia with three each.
The report also cited the Australia-UAE Comprehensive Economic Partnership Agreement in the context of critical minerals cooperation.
It said a dedicated memorandum of understanding on investment cooperation in the minerals sector was concluded alongside the Australia-UAE agreement, with such frameworks typically aimed at promoting activities in the minerals sector, exchanging information and supporting cooperation on sustainable technologies and research and development.
UNCTAD also highlighted the UAE’s growing presence in strategic overseas projects.
In Europe, the report cited a $43.4 billion digital infrastructure and data centre project in France by MGX of the UAE, making it one of the largest greenfield projects announced in developed economies in 2025.
The report also said sovereign wealth funds had become increasingly important actors in international State-owned investment, investing both directly and through affiliated State-owned multinational enterprises. It cited the acquisition of Aligned Data Centers in the United States by an investor consortium including MGX of the UAE.
In Africa, UNCTAD pointed to the growing role of investors from the Gulf and other Asian economies, particularly in energy, logistics, real estate and infrastructure, often through sovereign wealth funds and State-linked entities.
It said the UAE had been especially visible through recent greenfield megaprojects, citing the $34 billion Infinity Power renewable energy project in Mauritania, the $24 billion Ras El Hikma real estate development project in Egypt and the $6 billion H2 Global Energy hydrogen project in Tunisia.
The UAE’s performance came as FDI inflows into developing Asia increased from $623 billion in 2024 to $644 billion in 2025, confirming the region’s position as the largest recipient among developing regions.
Globally, FDI rose 6% to $1.6 trillion in 2025, ending two years of decline, according to UNCTAD. However, the organisation said the recovery remained fragile and uneven, with inflows to developed economies rising 11%, while developing economies recorded only 2% growth, reaching $901 billion.
UNCTAD said much of the global increase reflected a small number of megaprojects, especially in AI-related digital infrastructure. It said strategic sectors such as AI infrastructure, semiconductors, critical minerals and energy-transition technologies and services accounted for 44% of global greenfield project values in 2025, up from 16% in 2020.
The outlook for 2026 remains clouded by trade policy uncertainty, geopolitical tensions, conflicts, high financing costs and economic fragmentation, the organization said.