Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Greenfield foreign direct investment (FDI) into the UAE surged to a record $33.2 billion in 2025, marking a 78% year-on-year increase from $18.66 billion in 2024, according to a report by Emirates NBD.
The performance ranked the UAE 10th globally in greenfield FDI capital inflows, underscoring the country’s growing appeal as a destination for large-scale international investment.
The UAE also ranked second worldwide by the number of announced greenfield FDI projects, with project announcements rising 10.7% year on year to 1,491 in 2025. The report noted that this growth reflects not only rising capital inflows but also a broadening investor base, with the number of companies investing in the UAE nearly tripling over the past four years, increasing from 491 in 2021 to 1,440 in 2025.
Between 2021 and 2025, the UAE attracted $98.4 billion in cumulative greenfield FDI across 5,603 projects, representing a compound annual growth rate of 32.3% in announced capital inflows.
At the city level, Dubai remained the primary destination for greenfield FDI projects, accounting for 1,202 projects, or 81% of the national total, and attracting $8.45 billion in capital inflows. The report described Dubai as the second-largest recipient of greenfield FDI projects globally, reflecting its continued strength as a regional hub for services, technology and business operations.
Ras Al Khaimah emerged as the largest recipient by capital value, drawing $10.61 billion across 17 projects, which placed it sixth globally by FDI capital inflows. This was driven primarily by a landmark $10 billion smart manufacturing investment by India’s Erisha E Mobility, which is expected to anchor a large industrial ecosystem focused on electric vehicles, hydrogen technology, and advanced manufacturing.
Abu Dhabi secured 180 projects worth $5.19 billion, supported by investments in data centres, artificial intelligence and renewable energy, while Sharjah attracted 46 projects valued at $1.8 billion, including major residential and infrastructure developments, the report said.
By source country, India led greenfield FDI capital investment into the UAE in 2025, contributing $12.58 billion across 275 projects, largely driven by the Erisha E Mobility project.
The United States ranked second with $10.3 billion across 219 projects, anchored by large-scale data centre and AI infrastructure investments in Abu Dhabi.
The United Kingdom topped project count with 291 projects, although capital investment was lower at $1.16 billion, reflecting a concentration in smaller-scale services and technology operations. China contributed $1.27 billion through 45 projects, France invested $1.17 billion across 51 projects, and Kuwait contributed $962.8 million from seven projects.
Sectorally, the report highlighted a growing concentration of capital in advanced and future-oriented industries. The automotive OEM sector attracted the highest level of capital at $10.29 billion, despite accounting for only five projects, while the communications sector followed closely with $9.93 billion across 40 projects, reflecting heavy investment in data centres and AI infrastructure. Business services led by volume, accounting for 418 projects, or 28% of total announcements, while software and IT services attracted 304 projects worth $936.4 million.
The report also underscored the UAE’s rising role as a global capital exporter. Outbound greenfield FDI from the UAE reached a record $109.23 billion in 2025, a 51% increase from $72.31 billion in 2024, ranking the country third globally as a source of greenfield FDI capital, behind only the United States and Taiwan. These outbound investments spanned 365 projects worldwide.
From 2021 to 2025, UAE companies invested a cumulative $355.08 billion across 1,572 outbound projects, representing an approximate 58% CAGR in outbound capital. According to the report, this reflects the rapid expansion of UAE-based companies into global markets, particularly in digital infrastructure, energy and real estate.
Among outbound destinations in 2025, France emerged as the largest recipient of UAE capital, attracting $44.09 billion from five projects, largely driven by a major AI-focused data centre campus investment by MGX. The United States followed with $27.86 billion across 36 projects, while regionally, Saudi Arabia recorded the highest project count with 39 projects worth $1.16 billion, and Egypt secured 15 projects valued at $1.0 billion, the report said.
The communications sector dominated outbound FDI with $70.54 billion across 26 projects, accounting for 65% of total outbound capital. This concentration reflects large-scale data centre and AI infrastructure investments by MGX, DAMAC Digital, G42, Khazna, and others. Real estate followed with $13.12 billion across 28 projects.
