Dubai holds the No. 1 spot for greenfield FDI projects worldwide in H1 2024: fDi Markets

• Dubai ranked first globally in greenfield FDI with 508 projects in H1 2024, outperforming New York, Singapore, and London.
• It ranks third globally and first in the MENA region in greenfield FDI capital in H1 2024, with global firms drawn by Dubai’s lucrative business incentives and more.
• The government strategically designs initiatives that make the business setup in Dubai a great proposition for global MNEs and SMEs.

Recent data from Financial Times Ltd’s ‘fDi Markets’ shows that Dubai has once again remained the world’s top city for attracting greenfield foreign direct investment (FDI) projects from January to June 2024. The emirate has yielded 508 greenfield FDI projects, which account for 6.2% of the global volume. Remarkably, this value has a 5.7% year-over-year (YoY) increase in the same period in 2023.

This impressive feat highlights the emirate’s competitiveness and its attractiveness as a destination for international investors seeking business setup in Dubai.

Dubai’s impressive H1 2024 performance

Highlighting the emirate’s grand vision of solidifying its place among the world’s top three urban economies, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, Chairman of The Executive Council of Dubai, said:

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

Notably, Dubai has jumped three places up (from sixth to third ranks) as the world’s top city that attracts greenfield FDI projects in H1 2024. It has outperformed, once more, world-renowned financial centres such as New York, Singapore, and London and reportedly secures the top spot in high-performing sectors such as AI, fintech, real estate, tourism, and logistics.

In terms of greenfield FDI capital, the emirate of Dubai holds the first rank in all of the MENA countries — it climbed from the third to first spot compared to H1 2023. This new achievement can be credited to the city’s forward-looking economic policies, which align with the clear vision of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai.

A look at the data from the Dubai FDI Monitor

Dubai FDI Monitor, an on-chain research and data platform for FDI ecosystems across sectors overseen by Dubai’s Department of Economy and Tourism, offers deeper insights into the factors driving this FDI surge. An aggregate of 801 FDI projects valued at AED21.85 billion was announced during the first half of 2024, representing an 8% increase in FDI capital compared to 2023. According to official reports, this covers investment types such as greenfield FDI, greenfield joint ventures, new forms of investments (NFIs), mergers and acquisitions, reinvestments, and VC-backed FDI.

Importantly, Dubai also gained the fifth position for the number of jobs created through inward FDI internationally and top status in the MENA region. Dubai also experienced an influx of talent attraction spanning industries like (1) food and beverages, (2) business services, (3) software and IT services, (4) textiles, (4) consumer products, and (5) financial services.

The United Kingdom dominated in the share of announced projects, making up 15.4% of the total volume. Meanwhile, India was the largest source of FDI capital in Dubai, which represented 19.9% of total inflows, then followed by Switzerland and the United States. It is worth noting that the top five sectors that attracted FDI capital flows to Dubai, accounting for 57.4% of the total volume, are:

• Building materials – 17.3%
• Software and IT services – 14.3%
• Hotels and tourism – 10.2%
• Real estate – 9.5%
• Automotive original equipment manufacturers – 6.1%

In addition, the following leading fields accounted for the increase in total announced FDI projects:

• Business services – 19.4 %
• Software and IT services – 15.2 %
• Food and beverages – 14.1 %
• Textiles – 11.8 %
• Consumer products – 8.1%

Dubai’s thriving business environment

The commitment of the emirate’s leadership to fostering a world-class business environment for Dubai remains unwavering. The focus on enhancing processes and resources for global entrepreneurs looking for efficient business setup in Dubai undeniably makes it smoother for such entities to thrive.

With advanced sectors like AI, fintech, and logistics driving future growth, the emirate is well on its way to achieving its goal of becoming one of the top three cities to live, work, and invest worldwide. The path forward is clear: Dubai’s regulatory agility, innovation-driven goals, and robust investor confidence will ensure its continued dominance in the global FDI market for years to come.