Dubai emerges as the UAE’s premier FDI hub

Dubai’s investment story is changing. Money is no longer just moving around the region, it is being invested and reshaping the economy. The results from the first half of 2025 show more than just growth, they show stronger confidence in the UAE’s future. For investors this is real progress supported by new projects, partnerships, and policies that are already making an impact.

In the first half of 2025, Dubai attracted 526 greenfield foreign direct investment projects worth $3.03 billion, representing 86% of the UAE’s total inflows. This firmly establishes the emirate as the country’s main gateway for global investment.

The UAE recorded 613 greenfield projects in the first half of 2025, with a total value of $5.42 billion. Sharjah emerged as the second-largest destination, attracting $1.47 billion from 24 projects at an average of $61.1 million each. Abu Dhabi followed with 42 projects worth $595.8 million, while Ras Al Khaimah secured six projects valued at $188.6 million.

Where the Investments Came From

The UK accounted for the highest number of projects at 120, followed by India with 101 and the USA with 94. When measured by investment value, however, Kuwait ranked first, contributing almost $956 million from just three projects driven primarily by a large real estate development in Sharjah. 

The USA secured the second position with $889.5 million, while India ranked third with $677.9 million. China and Italy also played significant roles, investing $413.2 million and $387.6 million respectively.

Key Sectors Attracting Capital

Business services recorded the highest level of activity with 183 projects, while software and IT services followed with 108, driven by global technology firms expanding their presence in the region. Real estate, although limited to just 29 projects, attracted the largest share of investment, securing $1.05 billion in capital.

Manufacturing was another standout, drawing $1.06 billion across just 22 projects and underscoring the UAE’s emphasis on high-value industries such as automotive, chemicals, and advanced materials. 

Significant inflows were also recorded in transportation and warehousing, which attracted $770.4 million from 42 projects, as well as construction, which secured $1.12 billion through only three large-scale developments. Communications received $359.5 million in investment, while IT services accounted for $298.9 million.

The Role of Free Zones

Free zones reinforced their strategic role, securing $1.62 billion across 107 projects equivalent to nearly one-third of total FDI inflows, despite representing less than one-fifth of overall project numbers. Their appeal lies in advantages such as full foreign ownership, tax incentives, and advanced infrastructure, which continue to draw significant investment in sectors including logistics, manufacturing, and technology.

The Bigger Picture

The rise in FDI is not just a temporary boost but part of long-term changes that make the economy stronger. Dubai’s leading role shows steady growth and diversification, supported by solid policies, modern infrastructure, and clear regulations that make it easier for investments to expand.

As the economy advances and international partnerships deepen, Dubai’s property market presents a strong opportunity to participate in this growth. One Investments provides investors with access to developments that reflect the strength and confidence of this new phase.

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