Overview
The UAE consistently ranks as the leading FDI destination in the Middle East and North Africa region. We the UAE 2031 targets a cumulative increase in FDI stock to position the UAE among the global top ten investment destinations. Attracting high-quality FDI in technology, manufacturing, and knowledge-intensive services is prioritised over volume alone, reflecting the broader diversification strategy.
Current Data
| Year | FDI Inflows (USD Bn) | FDI Stock (USD Bn) | Global Rank | MENA Share (%) |
|---|---|---|---|---|
| 2021 | 20.7 | 174.2 | 15 | 38.4% |
| 2022 | 22.7 | 196.9 | 14 | 40.1% |
| 2023 | 30.7 | 227.6 | 11 | 43.8% |
| 2024 | 32.1 | 259.7 | 10 | 44.5% |
| 2025 | 33.5 (est.) | 293.2 (est.) | 10 (est.) | 45.0% (est.) |
| 2031 | 40+ | 450+ | Top 10 | Target |
Trend Analysis
FDI inflows surged after the 2020 reforms that permitted 100 per cent foreign ownership across most sectors, eliminating the longstanding requirement for Emirati majority shareholding. Annual inflows jumped from the USD 10-15 billion range in the late 2010s to consistently above USD 22 billion from 2022 onward. The 2023 figure of USD 30.7 billion represented a breakout year driven by technology sector investments, real estate capital flows, and regional headquarters relocations to Dubai and Abu Dhabi.
Sectoral composition has shifted toward technology, financial services, and advanced manufacturing, with the traditional real estate share declining from over 40 per cent to approximately 28 per cent of total inflows. Source country diversification has also progressed, with Indian, Chinese, and Southeast Asian investment supplementing traditional European and American flows.
Target Assessment
| Metric | 2022 | 2025 (est.) | 2031 Target | Status |
|---|---|---|---|---|
| Annual FDI inflows | $22.7 Bn | $33.5 Bn | $40+ Bn | On Track |
| FDI stock | $196.9 Bn | $293.2 Bn | $450+ Bn | On Track |
| Global ranking | 14th | 10th | Top 10 | Achieved |
| Tech sector FDI share | 12% | 22% | 30% | On Track |
The UAE has already achieved its top-10 global ranking target ahead of schedule. The cumulative stock target of USD 450 billion by 2031 requires maintaining current inflow levels, which appears achievable barring a global investment downturn.
Vision 2031 Alignment
FDI inflows directly support multiple We the UAE 2031 pillars including economic diversification, technology transfer, job creation, and global competitiveness. The vision emphasises quality over quantity — attracting headquarters, R&D centres, and manufacturing facilities that create permanent productive capacity rather than transient portfolio flows. The CEPA trade agreements and golden visa programme serve as complementary policy instruments driving FDI momentum.
Current Assessment: Ahead of Target — top-10 ranking achieved early with strong sectoral diversification.