Dubai maintained its position as the world’s top city for attracting greenfield foreign direct investment (FDI) projects in the first half of the year, data showed on Thursday.
Underscoring its competitiveness and appeal to international investors, Dubai attracted 508 greenfield FDI projects from January to June 2024, representing a 6.2 percent global share, growing from 5.7 percent in the same period last year, according to the Financial Times Ltd’s ‘fDi Markets’ data.
“Since 2021, Dubai has consistently maintained its top position in attracting foreign investment for six consecutive half-year periods, driven by its advanced economic system, exceptional infrastructure, and progressive investment policies. This achievement showcases the investors’ trust in Dubai’s capacity to foster an environment conducive to innovation and sustainable growth,” His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, said.
He highlighted that Dubai’s evolving economic policies and its constantly developing infrastructure continue to consolidate the city’s status as a top destination for investors, multinational corporations, and visitors, reinforcing its pivotal role in the global economy.
“We are committed to not just maintaining Dubai’s status as a major economic and tourism center but also ensuring it ranks among the top three global cities for visiting, investing, living, and business,” he added.
Sustained performance
Ranked ahead of major financial hubs such as London, Singapore and New York City, Dubai has now held the top global position in attracting greenfield FDI projects for six consecutive half-year periods since the second half of 2021. In H1 2024, Dubai was No.1 across a range of sectors, including tourism, real estate, artificial intelligence, headquarters, logistics and fintech, further solidifying its position as a global investment centre.
First in MENA region
Dubai rose three spots globally from sixth to third place for attracting greenfield FDI capital in H1 2024, and from third to first in the Middle East and North Africa (MENA) region, compared to H1 2023. This improvement reflects the city’s ongoing efforts to create an investor-friendly environment, which includes streamlined regulations, advanced infrastructure, and strategic initiatives aimed at fostering economic growth.
801 FDI projects
Overall, in the first half of the year, a total of 801 FDI projects valued at AED21.85 billion were announced in Dubai, compared to AED20.30 billion across 803 projects in the same period in 2023, according to Dubai FDI Monitor data. This includes greenfield FDI, new forms of investments (NFIs), mergers and acquisitions, reinvestments, VC-backed FDI and greenfield joint ventures. Total estimated FDI capital increased by 8 percent in H1 2024, compared to H1 2023, demonstrating Dubai’s continued attractiveness for higher-value investments.
For jobs created through inward FDI, Dubai ranked fifth globally in H1 2024 and continued to hold the top position in the MENA region. According to Dubai FDI Monitor data, Dubai experienced a surge in talent attraction across key sectors such as food and beverages, business services, software and IT services, textiles, consumer products and financial services.
Unique appeal to international investors
Helal Saeed Almarri, director general of Dubai Department of Economy and Tourism (DET), said: “Dubai’s sustained leadership in attracting greenfield FDI projects speaks to the city’s strategic foresight and its unique appeal to international investors. Attracting over 500 projects in the first half of 2024 alone is a testament to the city’s vision and enabling policies.”
“As businesses face challenges like economic volatility, regulatory burdens, and talent shortages, Dubai offers a compelling solution with its pro-business regulatory environment, cutting-edge infrastructure, and unrivalled global connectivity. By fostering talent development and embracing digital transformation, Dubai is creating an unparalleled ecosystem where businesses can grow, innovate, and thrive,” he added.
Top five sectors
In terms of investment types for FDI projects into Dubai, new forms of investments (NFIs), VC-backed FDI and reinvestment FDI projects increased by 5.5 percent, 3.6 percent and 0.7 percent, respectively.
Dubai FDI Monitor data revealed that the top five source countries by FDI capital accounted for 67.1 percent of the total estimated flows in H1 2024, while the top five source countries accounted for 50.2 percent by FDI projects.
India was the source country with the highest total estimated FDI capital into Dubai, accounting for 19.9 percent, followed by Switzerland (19.6 percent), United States (12 percent), United Kingdom (8.3 percent) and France (7.4 percent). In terms of total announced FDI projects, the United Kingdom led the way with 15.4 percent, followed by India (13.7 percent), United States (12.7 percent), Italy (4.2 percent) and France (4.2 percent).
Meanwhile, the top five sectors accounted for 57.4 percent of total estimated FDI capital flows into Dubai and 68.6 percent of total announced FDI projects, according to Dubai FDI Monitor data. Based on FDI capital, the leading sectors were building and materials (17.3 percent), software and IT services (14.3 percent), hotels and tourism (10.2 percent), real estate (9.5 percent) and automotive original equipment manufacturers (6.1 percent), while the top sectors based on FDI projects were business services (19.4 percent), software and IT services (15.2 percent), food and beverages (14.1 percent), textiles (11.8 percent) and consumer products (8.1 percent).
Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said: “Driven by the city’s dynamic leadership, and with the support of our partners across the public and private sectors, Dubai continues to solidify its position as not only one of the world’s most popular destinations to visit, but also to live, work and invest in. Dubai’s ranking as a global leader in greenfield FDI for tourism – across projects, capital and job creation – reflects the destination’s unique ability to attract and foster investment, and deliver significant returns for the tourism sector. Guided by the forward-thinking initiatives of the D33 Agenda, we will continue driving this positive momentum, actively seeking new and innovative approaches to enhance repeat visitation, improve access to the city, establish long-term advocacy for Dubai, and attract further investment.”
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