Business

Dubai retains top spot as global leader in Greenfield FDI

Published

2 months ago

March 10, 2025

Dubai has once again cemented its status as the world’s No.1 destination for Greenfield Foreign Direct Investment (FDI) projects, maintaining its leading position for the fourth consecutive year, according to the latest data from Financial Times Ltd.’s ‘fDi Markets.’

In 2024, Dubai attracted an estimated Dh52.3 billion ($14.24 billion) in FDI capital, marking a 33.2% increase from Dh39.26 billion ($10.69 billion) in 2023. This represents the highest FDI value recorded for the emirate since 2020, underscoring its appeal as a prime global investment hub.

The emirate also achieved a new milestone by recording 1,117 Greenfield FDI projects in 2024, the highest in its history. In total, Dubai announced 1,826 FDI projects, an 11% increase from 2023, reinforcing its ability to attract international investment. The influx of FDI generated 58,680 new jobs in 2024, reflecting a 31% increase from the previous year and further demonstrating Dubai’s role as a major employment driver.

Strategic Vision and Investment Leadership

Dubai’s consistent FDI growth is the result of strategic economic planning, spearheaded by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and supported by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai.

The city’s investment policies align with the Dubai Economic Agenda D33, which aims to double the size of the emirate’s economy by 2033 and position it among the world’s top three urban economies.

Sheikh Hamdan stated, “Dubai’s ability to sustain its No.1 global ranking in Greenfield FDI attraction is a testament to its strategic vision and investor-centric approach. Despite global economic challenges, Dubai continues to offer a stable, forward-looking business environment that fosters long-term growth and innovation.”

What is Greenfield investment?
Greenfield investment (GI) refers to a type of foreign direct investment (FDI) where a company establishes operations in a foreign country. The company constructs new (green) facilities (sales office, manufacturing facility, etc.) cross-border from the ground up.

A Global Investment Magnet

Dubai’s ability to attract international capital is driven by its world-class infrastructure, investor-friendly regulations, and strategic geographic position. In 2024, the city ranked third globally in terms of job creation through inward FDI, up from fourth in 2023, while maintaining its top ranking in the Middle East and Africa (MEA). Key sectors contributing to this growth include business services, software and IT, real estate, financial services, and industrial equipment.

For the third consecutive year, Dubai was ranked No.1 globally in attracting Headquarter (HQ) FDI projects, securing 50 major HQ investments in 2024 alone. The city also saw a rise in investments across advanced sectors such as artificial intelligence (AI), cybersecurity, and e-commerce, further strengthening its position as a global technology and innovation hub.

Investment Confidence and Market Leadership

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), highlighted the emirate’s resilience in attracting capital. “Dubai’s ability to continuously draw foreign investment amid evolving global economic conditions is a reflection of its strong governance, strategic planning, and robust business ecosystem.”

According to ‘fDi Markets’ data, Dubai led in Greenfield FDI projects across multiple industries, including financial services, real estate, and technology. The emirate’s share of global FDI projects in Advanced Information Technologies (AIT) increased from 7.3% in 2023 to 8% in 2024, reinforcing its leadership in the digital economy.

Key Investment Sources and Sectors

Dubai’s top five FDI source countries accounted for 63% of total investment inflows in 2024, with India leading at 21.5%, followed by the US (13.7%), France (11%), the UK (10%), and Switzerland (6.9%).

The top sectors attracting FDI capital included hotels & tourism (14%), real estate (14%), software & IT services (9.2%), building materials (9%), and financial services (6.8%). Meanwhile, the most active sectors in terms of FDI projects were business services (19.2%), food & beverages (16.5%), and software & IT services (14.3%).

Future Outlook: Sustaining Growth Amid Global Shifts

Dubai’s outlook for FDI in 2025 remains positive despite global economic uncertainties. The emirate is expected to maintain its strong investment momentum, particularly in high-tech and innovation-driven sectors. With an investor-friendly regulatory environment and a focus on long-term economic stability, Dubai continues to attract major private equity and sovereign investors.

As the city advances toward its ambitious economic goals, Dubai remains a global benchmark for investment excellence, economic resilience, and business-friendly policies. Its ability to consistently deliver on its strategic vision ensures that it remains a top destination for international investment, trade, and innovation in the years ahead.

(Source: Wam)

Business

UAE Central keeps borrowing costs unchanged at 4.40%

Published

23 hours ago

May 8, 2025

Michael Gomes

The Central Bank of the UAE (CBUAE) has decided to keep its Base Rate unchanged at 4.40%, following the US Federal Reserve’s move to hold interest rates steady.

This rate applies to the Overnight Deposit Facility (ODF) and acts as a guide for short-term interest rates in the country.

The CBUAE also confirmed that the interest rate for borrowing short-term funds from the central bank will remain 50 basis points (0.50%) above the Base Rate.

The Base Rate is linked to the US Federal Reserve’s Interest Rate on Reserve Balances (IORB) and reflects the UAE’s overall monetary policy direction.

Business

Dubai Civil Aviation Authority unveils new corporate look

Published

3 days ago

May 6, 2025

Michael Gomes

The Dubai Civil Aviation Authority (DCAA) has officially launched a new corporate identity, marking a major milestone in its journey toward innovation and global leadership in the aviation sector.

The new look is part of a wider strategy to modernise the authority’s image while staying true to its deep-rooted history and aligning with Dubai’s vision for the future of civil aviation.

A Fresh Start with a Nod to the Past

The identity was unveiled under the slogan “Returning to the Beginnings with New Horizons. Sheikh Ahmed bin Saeed Al Maktoum, President of the DCAA, said the new identity represents a perfect balance of heritage and forward-thinking, symbolising a new era in the authority’s development.

Designed for the Future

The refreshed identity includes:

A custom traditional typeface, inspired by the 1970s Civil Aviation Department nameplate
A unified colour palette, symbols, and visual elements for all platforms
A design that brings together heritage and modern aesthetics

Mohammed Abdulla Lengawi, Director-General of the DCAA, said the identity aims to foster a work environment of excellence, innovation, and institutional pride.

A Unified Brand

The updated identity will be rolled out across digital platforms, publications, and communication channels.

Real estate

Dubai Holding to launch region’s largest residential real estate investment trust

Published

4 days ago

May 5, 2025

Michael Gomes

Dubai Holding has announced plans to list a 12.5% stake in its residential real estate investment trust (REIT), offering investors a new opportunity to tap into the emirate’s fast-growing property market.

The REIT, known as Dubai Residential REIT, focuses on leasing and manages a portfolio of 35,700 residential units across Dubai, including well-known communities like City Walk and Bluewaters. The listing will mark Dubai’s first IPO of 2025, with trading expected to begin around May 28.

According to sources, the offering could raise up to $500 million, although Dubai Holding has not officially confirmed the valuation.

Why It Matters

Dubai’s property sector has seen a major surge since the pandemic, driven by foreign investment and residency reforms. The city’s real estate prices have soared, reversing the effects of the 2009 crash, which had required a multibillion-dollar bailout. Since then, the government has worked to consolidate major developers and stabilise the market.

The Dubai Residential REIT is expected to become the largest listed REIT in the GCC, with a gross asset value of $5.9 billion (Dh21.6 billion). It also represents the latest effort by Dubai to make its property market more accessible to a broader pool of investors, particularly those seeking steady, long-term returns.

Investor Snapshot

Dubai Holding plans to offer 1.63 billion units in the IPO through its subsidiary DHAM Investments. The listing is structured for both retail and institutional investors and will follow a semi-annual dividend policy, with payouts beginning from 2026. The REIT aims to distribute at least 80% of its profit for that year.

Despite global market uncertainties and IPO slowdowns, Dubai Holding sees this as a defensive investment backed by government support and the emirate’s rising population.

Who’s Behind the Deal

Dubai Holding owns top-tier real estate brands such as Nakheel, Meraas, and Meydan. The company is also one of the UAE’s largest landowners. Citi, Emirates NBD, and Morgan Stanley are acting as global coordinators and joint bookrunners for the IPO.