UAE to Attract $600 Billion in FDI by 2031

H H Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said that the UAE, which possesses strong fundamentals to attract investments, companies, businesses, and talent, has set an objective to double the cumulative foreign direct investment (FDI) inflows to $600 billion by 2031.

Addressing the UAE Government Annual Meetings 2024 in Abu Dhabi, he said that the UAE’s made a remarkable surge of 35% in FDI inflows to $30.66 billion in 2023 a striking 35% increase from $22.73 billion in 2022, despite a global decline, affirming the success of its strategies and the high level of international confidence in the Emirates.

H H Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, was present at the unveiling of the National Investment Strategy 2031, Dubai Media Office said in a statement on Tuesday night.

H H Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum; Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence; H H Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance; H H Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Second Deputy Ruler of Dubai and Chairman of the Dubai Media Council were among the dignitaries present.

The two-day annual meetings brought together over 500 officials from the UAE government, local entities, private sector, and community organisations.

H H Sheikh Mohammed noted: “The National Investment Strategy 2031 builds on achievements driven by carefully crafted plans, programmes, and initiatives aimed at positioning the UAE as a global strategic investment hub.”

UAE’s FDI Share Doubles

During the session, H H Sheikh Mohammed bin Rashid attended a presentation by Mohamed bin Hassan Al Suwaidi, the UAE’s Minister of Investment, on the goals, programmes, and key initiatives of the National Investment Strategy 2031.

The Minister Al Suwaidi highlighted the UAE’s impressive FDI growth since 2015, with its share of global flows increasing 5.5 times and inflows rising 17.3% despite a global decline of 5.3%.

The strategy, aligned with the “We the UAE 2031” vision, aims to establish the UAE as a global investment hub by leading in emerging sectors, attracting top talent, and fostering Emirati leadership, innovation, and entrepreneurship.

New FDI Strategy

Targeting key sectors like advanced manufacturing and renewable energy, the strategy seeks to double cumulative FDI to $350 billion (30% of national investment volume) and triple the cumulative FDI balance to $600 billion by 2031.

This will be achieved through five strategic directions: attracting new investments in priority sectors, expanding FDI in existing projects, strengthening international partnerships, enhancing investor relations, and boosting the UAE’s overall competitiveness.

The UAE ranked second globally after the United States in the number of new foreign direct investment (FDI) projects, with 1,323 new projects—a 33% increase from 2022 last year, the Minister explained.

In terms of cumulative FDI balance, Al Suwaidi noted that the UAE has significantly outpaced global growth rates over the past decade. From 2013 to 2023, the UAE’s FDI balance increased by 150%, far exceeding the global average growth rate of 97%.

Competitiveness Appeals to Investors

The UAE’s attractiveness for foreign investment is driven by its economic competitiveness, technological leadership, talent acquisition, global trade hub status (supported by numerous treaties and agreements), advanced financial centres, world-class infrastructure, and high quality of life.

The National Investment Strategy 2031 builds on these strengths, leveraging each emirate’s unique advantages to foster private sector growth and innovation. By integrating global trends and prioritising research and development, the strategy aims to create a vibrant, investor-driven, private-sector-led economy.