Image: Getty Images
Dubai has maintained its position as the world’s leading city for attracting greenfield foreign direct investment (FDI) projects, according to data from the Financial Times fDi Markets.
In H1 2024, Dubai attracted 508 greenfield FDI projects, accounting for 6.2 per cent of the global share — up from 5.7 per cent in the same period the previous year.
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: “Dubai’s evolving economic policies and world-class infrastructure have solidified the city’s position as a top destination for investors and multinational corporation.”
He added: “We remain committed to ensuring that Dubai ranks among the top cities for business, investment and tourism while driving the growth of a diversified, sustainable economy under the Dubai Economic Agenda D33.”
Dubai has been the global leader in attracting greenfield FDI projects for six consecutive half-year periods since the second half of 2021. The city’s success in 2024 spans various sectors, including tourism, real estate, artificial intelligence, logistics, fintech, and headquarters establishments, further reinforcing its role as a global investment centre.
For the 3rd consecutive year, Dubai has retained its position as the world’s top destination for Greenfield FDI projects, according to Financial Times Ltd’s ‘fDi Markets’ data. The emirate outperformed other major financial hubs, thanks to the vision of HH Sheikh Mohammed bin… pic.twitter.com/dlGo2o3IDL
— Hamdan bin Mohammed (@HamdanMohammed) October 3, 2024
Strong FDI capital growth
In addition to attracting the most greenfield FDI projects globally, Dubai saw a rise in FDI capital in H1 2024.
Total FDI capital, including greenfield projects, new forms of investments (NFIs), mergers, acquisitions, and other investment types, surged to Dhs21.85bn, compared to Dhs20.3bn from 803 projects in H1 2023.
This 8 per cent increase highlights Dubai’s growing allure as a destination for high-value investments.
Dubai also rose three global spots in greenfield FDI capital rankings, moving from sixth to third place, and from third to first in the Middle East and North Africa (MENA) region.
This progress showcases the city’s dedication to fostering an investor-friendly environment through streamlined regulations, advanced infrastructure, and targeted economic policies.
Dubai’s global leadership in FDI and job creation
In addition to attracting FDI projects and capital, Dubai ranked fifth globally for jobs created through FDI in H1 2024, while maintaining its top position in the MENA region.
Sectors experiencing significant job growth include food and beverages, business services, software and IT services, textiles, and financial services.
Dubai’s Director-General of the Department of Economy and Tourism (DET), Helal Saeed Almarri, emphasised that Dubai’s success in attracting over 500 FDI projects in H1 2024 is proof of the city’s foresight and its appeal to international investors. “Our continued leadership is a result of visionary policies, as well as the city’s commitment to innovation, sustainability, and progress. The D33 Agenda, aiming to double Dubai’s GDP by 2033, will continue to attract foreign investments and drive long-term economic growth,” said Almarri.
Sectoral and geographical breakdown of greenfield FDI
In terms of sectoral distribution, the top five sectors by FDI capital in Dubai during H1 2024 were building and materials (17.3 per cent), software and IT services (14.3 per cent), hotels and tourism (10.2 per cent), real estate (9.5 per cent), and automotive manufacturing (6.1 per cent).
The city’s diversified economy also attracted significant FDI into business services (19.4 per cent), software and IT services (15.2 per cent), food and beverages (14.1 per cent), textiles (11.8 per cent), and consumer products (8.1 per cent).
India led as the top source of FDI capital, contributing nearly 20 per cent of the total FDI capital flows into Dubai, followed closely by Switzerland (19.6 per cent), the US (12 per cent), the UK (8.3 per cent), and France (7.4 per cent).
In terms of the number of FDI projects, the United Kingdom was the largest contributor, followed by India, the US, Italy, and France.
Tourism and economic growth
Dubai’s tourism sector also performed strongly in H1 2024, with the city welcoming 10.62 million international visitors – a year-on-year increase of 8 per cent.
This growth, on the heels of a record-breaking 2023, reflects Dubai’s appeal as a global destination. The city’s hotels also posted strong performance metrics, including growth in average occupancy rates and revenue per available room (RevPAR).
Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing (DCTCM), attributed this success to the city’s visionary leadership and strong partnerships across the public and private sectors. “Dubai continues to demonstrate its ability to attract investment and foster economic growth, not just in tourism, but across all sectors.
“The city’s status as a top destination for FDI projects, capital, and job creation in tourism highlights its continued leadership in the global tourism industry.”
Looking ahead, Dubai remains focused on bolstering its position as a leading global investment hub. Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC), emphasised that Dubai’s performance in attracting high-value FDI projects reflects the city’s forward-thinking strategy and its commitment to fostering a sustainable economy.
“We are committed to strengthening Dubai’s global competitiveness and ensuring it remains a top destination for investment and business,” Badri said.
