UAE Leads Middle East in Foreign Investment in 2025

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The UAE attracted a record $48.24 billion in foreign direct investment (FDI) during 2025, ranking ninth globally and first in the Middle East, according to the United Nations Conference on Trade and Development's (UNCTAD) latest World Investment Report.

The total marked a 6% year-on-year increase, maintaining the UAE's ninth-place global ranking from 2024 and placing it ahead of Saudi Arabia, Mexico, India and Australia. UNCTAD attributed strong investment flows into both the UAE and Saudi Arabia to continued spending on energy, infrastructure and economic diversification, with total FDI into West Asia rising to nearly $111 billion from $92 billion a year earlier.

The UAE's National Investment Strategy aims to attract AED 240 billion in annual FDI by 2031. Last year's inflows amounted to approximately AED 177 billion, while outward investment declined to $63 billion in 2025 from $77 billion in 2024, moving the UAE from sixth to ninth among the world's largest outward investing economies.

Looking ahead, UNCTAD warned that geopolitical tensions, particularly the US-Iran conflict, could weigh on global investment during 2026. The report said delays and cancellations of cross-border mergers and acquisitions are already emerging, with infrastructure, energy and industrial projects expected to be among the sectors most exposed to heightened uncertainty.