MAYS IBRAHIM (ABU DHABI)
The UAE was the world's strongest performer for attracting foreign direct investment relative to the size of its economy in 2025, according to the 11th edition of fDi Intelligence's Greenfield FDI Performance Index.
The country attracted 19.21 times more greenfield FDI projects than the size of its economy would suggest,
more than double the scores of second-placed Namibia (7.74), followed by Rwanda (6.99) and Costa Rica (6.5).
The index analysed 98 countries that attracted at least 10 greenfield FDI projects in 2025. It found that 74 economies outperformed their share of global GDP in attracting investment projects, while the remaining 24 underperformed.
The UAE secured a record 1,533 inward FDI projects in 2025, up 13.8% from the previous record set in 2024, making it the second-largest destination globally for greenfield projects after the US, according to fDi Markets.
More than half of the projects were concentrated in business, technology and financial services, while logistics and industrial equipment also recorded strong annual growth.
“The Gulf country pitched itself as a business hub for multinationals managing a more fragmented global economy beset by geopolitical tensions and protectionism,” the report said.
The UAE also topped the index's inaugural population ranking, attracting 134.6 FDI project announcements for every one million residents in 2025.
Qatar ranked second with 55.4 projects per million people, followed by Singapore (54.5) and Luxembourg (49.9).
The UAE, which has a population of 11.3 million, aims to raise annual FDI inflows to $65 billion, supported by a $10 billion national investment fund.
According to UNCTAD, the country attracted a record $48.3 billion in FDI in 2025, up 6% from the previous year.
Oman ranked first globally for capital expenditure commitments relative to population, attracting $2.99 billion in FDI per million residents, narrowly ahead of the UAE at $2.986 billion.
Other Gulf economies also improved their FDI performance relative to economy size. Qatar climbed to fifth place, its highest ranking in a decade, while Oman rose 23 places to 14th.
However, fDi Intelligence said the regional investment landscape has shifted in 2026 following the military conflict involving Iran.
Between March and May, announced FDI projects across the Middle East fell 67% year on year after the US-Israeli offensive against Iran began on February 28.
Despite the slowdown, the report said pro-business reforms and long-term economic diversification strategies continue to underpin the region's appeal to foreign investors.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, recently announced that the country's non-oil foreign trade reached a record Dh1.937 trillion in the first half of 2026, an increase of 13.1% compared with the same period last year.