Tuesday, 02 January 2024 12:17 GMT

Dubai Records Global Highest Number Of Greenfield FDI Projects In Half-Year Period Since 2003


(MENAFN- Khaleej Times)

Dubai ranked as the global first for the number of Greenfield FDI projects it attracted for the eighth consecutive half-year period since H2 2021, according to data published in the Financial Times Ltd's 'fDi Markets' tracking database.

The emirate maintained its status as a leading hub for foreign direct investment (FDI), and attracted 643 Greenfield FDI projects in the first half of 2025: 478 more than the second-placed city, and the highest number ever recorded for any city globally in a half-year period since fDi Markets began tracking the data in 2003.

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The achievement highlighted Dubai's futuristic development vision, and its continued success as a preferred global investment destination and global centre for creating new opportunities, said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai.

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“This latest distinction aligns perfectly with the objectives of the Dubai Economic Agenda, D33, which aims to double the size of Dubai's economy by 2033 and consolidate its position among the top three urban economies in the world,” he added.

Dubai's strategic location and investment ecosystem – built around progressive regulations, world-class infrastructure, digital-first services, and global connectivity – continues to bolster the city's reputation as a safe, forward‐looking destination for investors.

In H1 2025, Dubai advanced to second place globally for total Greenfield FDI capital, up from fourth in H1 2024, and rose to third place globally for jobs created through inward FDI, also an improvement from fourth place last year. Across both these metrics, Dubai retained its position as the number one city in the Middle East.

Headquarters, clusters and emerging categories

Further consolidating its status as a preferred base for headquarters of multinational firms, Dubai secured the global No.1 ranking for HQ FDI projects, with project numbers rising by 60 per cent from 20 in H1 2024 to 32 in H1 2025.

The city also ranked first globally across clusters including ICT and electronics, creative industries, professional services, life sciences, consumer goods, financial services, industrial equipment, transportation and warehousing, and environmental technology. Dubai led in emerging categories such as Artificial Intelligence (AI) and Financial Technology (FinTech).

With a global market share of 8 per cent and a 56 per cent share of the Middle East's total Greenfield FDI projects, Dubai has established itself as a leading hub for investment.

Growth across capital and jobs

According to the Dubai FDI Monitor, published by DET, the emirate attracted Dh40.4 billion ($11 billion) in estimated FDI capital in H1 2025, a 62 per cent increase compared to Dh24.7 billion ($6.8 billion) in H1 2024. The total number of announced FDI projects surged 28.7 per cent from 847 in H1 2024 to 1,090 in H1 2025. Total estimated jobs created through inward FDI rose by 46.7 per cent, from 26,202 in H1 2024 to 38,433 in H1 2025.

The city's first-half performance was also marked by diversification in investment types and functions. Greenfield projects accounted for 52.4 per cent of total inflows, complemented by new forms of investment (36.1 per cent), reinvestments (4 per cent), venture capital-backed projects (4.3%), and mergers and acquisitions (3.2 per cent). This is mirrored in sectoral gains spanning business services, consumer products, food and beverages, software and IT services, financial services, real estate, tourism and transport-linked activities.

Sector-wise distribution

FDI was also widely distributed across business functions. Business services contributed 31.3 per cent of capital inflows, followed by construction (28.6 per cent), retail (10.7 per cent), logistics, distribution and transportation (7.8 per cent), and manufacturing (7.5 per cent). From a project perspective, retail functions dominated with 36.6 per cent of total announced FDI, followed by business services (30.7 per cent), sales, marketing and support (21.3 per cent), headquarters (2.9 per cent), and logistics (2.4 per cent).

This diversity demonstrates investor confidence in Dubai's ability to support diverse operational needs – from headquarters to logistics bases, from manufacturing to consumer-facing retail – reinforcing its resilience within the global economy.

Source markets and sectors

Dubai FDI Monitor data also showed that the top five source countries accounted for 68.7 per cent of total estimated FDI capital flows into Dubai in H1 2025.

The United States led with 35 per cent, followed by the United Kingdom (10.6 per cent), France (8.9 per cent), India (8.9 per cent), and Saudi Arabia (5.2 per cent). For announced FDI projects, the top five source countries accounted for 56 per cent, led by the United Kingdom (16.2 per cent), United States (14.9 per cent), India (14.9 per cent), France (5.4 per cent) and Italy (4.6 per cent).

In H1 2025, the top five sectors accounted for 72 per cent of the total estimated FDI capital flows into Dubai and the top five sectors by FDI projects accounted for 69 per cent of the total announced FDI projects. Based on FDI capital, the leading sectors were business services (30.6 per cent), hotels and tourism (21.3 per cent), transportation and warehousing (7.2 per cent), consumer products (6.6 per cent), and real estate (6.3 per cent). For FDI projects, the top sectors were business services (19 per cent), consumer products (16.5 per cent), food and beverages (15 per cent), software and IT services (11 per cent), and financial services (6.6 per cent).

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