Dubai boosts reputation as world’s top FDI destination
Emirate attracts more inbound investment than established rivals including London, Shanghai, Singapore and New York
Dubai has consolidated its reputation as one of the world’s top investment destinations, with the Financial Times’ fDi Markets revealing the emirate attracted more greenfield Foreign Direct Investment (FDI) projects in the first half of 2024 than any other city worldwide.
Dubai secured 508 greenfield FDI projects from January to June, the equivalent of 6.2% of all projects globally, up from 5.7% a year earlier.
Surpassing resurgent global rivals including London, Shanghai, Singapore and New York, Dubai has held its top global ranking for attracting greenfield FDI projects for six consecutive half-yearly periods, starting from the second half of 2021.
In the first half of 2024, Dubai extended its dominance across multiple growth sectors, including tourism, real estate, artificial intelligence, logistics, and fintech, further reinforcing its status as a premier global investment hub.
Discussing the results, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence and chairman of The Executive Council of Dubai, said the emirate’s strong performance was a “testament to 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," HH Sheikh Hamdan explained.
“We are committed to not just maintaining Dubai's status as a major economy and tourism destination, but also ensuring it ranks among the top three global cities for visiting, investing, living, and business,” he added.
Investment strategy supports Dubai Economic Agenda D33
HH Sheikh Hamdan noted that these ambitions reflect the key goals of Dubai Economic Agenda D33, the groundbreaking economic development roadmap that aims to double Dubai’s GDP by 2033.
Dubai marked a number of other important FDI milestones in the first half of 2024, including ranking first in the region and third worldwide for attracting greenfield FDI capital – up from third and sixth place respectively 12 months ago.
According to data published by Dubai FDI Monitor, Dubai secured a total of 801 FDI projects valued at US$5.95 billion in the first half of 2024, with this value rising 7% compared to a year earlier.
Globally, Dubai ranked fifth for jobs created through inbound FDI in H1, 2024, while maintaining its leading position in the MENA region. Data from Dubai FDI Monitor also highlighted significant jobs growth in fast-growing sectors including hospitality, business and financial services, and software development.
According to the organisation, India accounted for the largest overall proportion of FDI into Dubai at 19.9%, followed by Switzerland (19.6%), the U.S. (12%), the U.K. (8.3%) and France (7.4%). In terms of total announced FDI projects, the U.K. ranked first with 15.4%, followed by India (13.7%), the U.S. (12.7%), Italy (4.2%) and France (4.2%).
The top-ranked investment sector was building and materials (17.3%), followed by software and IT services (14.3%), hotels and tourism (10.2%), real estate (9.5%) and automotive original equipment manufacturers (6.1%).
Based on confirmed FDI projects, the rankings were business services (19.4%), software and IT services (15.2%), food and beverages (14.1%), textiles (11.8%) and consumer products (8.1%).
Tourism industry drives economic growth
HE Helal Saeed Almarri, director general of Dubai Department of Economy and Tourism (DET), which oversees the development of the city’s tourism-led economy, said Dubai’s status as one of the world’s top FDI destinations “speaks to the city’s strategic foresight and its unique appeal to international investors”.
“Attracting more than 500 projects in the first half of 2024 alone is testament to the city’s vision and enabling policies, guided by HH Sheikh Mohammed bin Rashid Al Maktoum, and overseen by HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. The Dubai Economic Agenda, D33, continues to pave the way for long-term economic expansion, enabling Dubai to double its GDP while driving innovation in sectors such as AI, fintech, logistics, and tourism,” he commented.
"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. For international businesses and investors, Dubai is the ideal destination to seize new growth opportunities and navigate the challenges of tomorrow’s business landscape.”