The United Arab Emirates maintained its advanced position as one of the most attractive investment destinations in the region, ranking first in the Middle East and Africa in attracting foreign direct investment during 2025.

According to a recent report by fDi Markets, the greenfield investment monitor affiliated with the Financial Times, the UAE attracted foreign direct investments worth $34 billion, compared with $18.7 billion in 2024, achieving growth of 82%.

These investments were made through 1,529 new projects, reflecting the continued appeal of the UAE market to international companies, at a time when the global economy is witnessing a more cautious approach to expansion and investment decisions.

Strong UAE Presence in Financing Global Projects

The UAE’s role in 2025 was not limited to attracting investments into the country. It also emerged as a major source of financing for projects across several global markets.

The report noted that MGX and DAMAC were among the largest sources of foreign direct investment worldwide during the year, reflecting the growing international presence of UAE-based investors in key sectors.

Globally, foreign companies announced around 16,500 new foreign direct investment projects in 2025, with estimated capital commitments of about $1.36 trillion.

UAE Ranks Second in Europe After the United States

The fDi Markets report showed that the UAE ranked second as the largest source of foreign investment in Europe across several sectors, including telecommunications, renewable energy, real estate, transportation and warehousing, software, and information technology.

The total value of UAE investments in these sectors in Europe reached $52.6 billion, while the United States topped the list with $77.2 billion.

This ranking highlights the expanding scope of UAE investments in sectors linked to digital transformation, infrastructure, and clean energy, all of which continue to attract growing global interest.

Advanced Position in Asia-Pacific and North America

In the Asia-Pacific region, the UAE ranked third among the largest sources of foreign financing in telecommunications, renewable energy, and semiconductors, with a total of $13.7 billion.

The United States came first with $110.8 billion, followed by the United Kingdom in second place with $21.5 billion.

The UAE also ranked second among the largest sources of foreign direct investment in North America, across telecommunications, renewable energy, real estate, coal, and gas, with total investments of $28.5 billion.

UAE Companies Among the World’s Largest Investors

The report revealed that MGX ranked third globally among the largest sources of capital investment, with a total of $43.4 billion, through a project that helped create around 3,000 jobs.

Meanwhile, DAMAC ranked sixth globally with investments of $24.6 billion through 15 projects, which created 5,193 jobs.

Dubai World ranked seventh among the top 10 investors by number of projects, after carrying out 30 projects worth $4.1 billion.

Global Decline in Project Numbers Despite Higher Investment Value

The Financial Times report stated that the number of announced foreign direct investment projects worldwide declined by 6.6% in 2025 compared with the previous year. The number of new jobs created by these projects also fell by 9.5%.

This decline was linked to a more cautious investment environment, affected by trade tensions, tariffs, supply chain restructuring, and uncertainty surrounding some economic policies.

However, the overall value of investment remained strong. Estimated capital expenditure rose by 2.2% in 2025 compared with 2024, making it the second-highest level recorded after 2023.

Diverse Investment Flows into the Middle East

The Middle East received direct investment flows from several major global economies in 2025. The United States led the list with a total of $22.97 billion, followed by China with $21.27 billion, and India with $14.94 billion.

Investments from France reached $11.57 billion, while the United Kingdom recorded $8.42 billion, and Germany contributed $7.41 billion.

South Korea’s investment flows into the region reached $4.60 billion, compared with $3.96 billion from Hong Kong, $2.99 billion from Norway, and $2.52 billion from the Netherlands.

An Important Economic Indicator for the UAE

The UAE’s results in the 2025 foreign direct investment report reflect the strength of its economic position both regionally and globally, whether in terms of its ability to attract capital or its growing role as a source of investment in international markets.

These results also confirm that the UAE continues to benefit from a flexible business environment and a clear focus on future-oriented sectors, strengthening its position as a leading hub for investment, trade, and finance in the region.