Dubai Remains the Leading Global Destination for Foreign Direct Investments (FDI’s)

Created On: September 10, 2020
Newsletter, U.A.E.

Modified On: January 12, 2026

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For companies who are contemplating a new business set-up in Dubai, the following should be helpful in the decision-making process. Despite the business and economic repercussions of the first half of 2020, Dubai has managed to hold its position as a leader in FDI’s or Foreign Direct Investments in the MENA (Middle East and North Africa) region. Based on recent statistics published in Financial Times’ FDI Markets, Dubai was ranked #3 in greenfield FDI’s and 4^th in capital flow on a global scale.

Economic Growth and Recovery

Dubai Crown Prince Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum recently stated that FDI’s are continuing to flow into the area with current FDI projects valued at AED12 billion ($3.27 billion). This was a positive move that showed other countries are doing business in the UAE and that reinforced the premise that economic laws are conducive in UAE. These projects included the e-commerce, pharmaceutical, and technology sectors. These figures and statistics are a reflection of how attractive the investment environment is in Dubai and how well the economy has been recovering from the Coronavirus pandemic.

Economic Growth and Recovery

Sheikh Hamdan expressed his sincere gratitude as the emirate has been ranked as one of the world’s top destinations for FDI’s. This is attributed to the attractiveness and diversity of investment opportunities in emerging and strategic economic sectors. Dubai was ranked as the #1 FDI destination in the Middle East and North Africa (MENA) region and 11th out of 20 worldwide FDI destinations (see FDI Markets’ Global Venture Capital FDI Ranking 2020 report).

Pertinent statistics indicate that sustained FDI investments in Dubai company incorporation exceeded AED 739 million ($201 million) during the first half of 2020. Rankings published in the “FDI Aerospace Cities of the Future 2020/2021” report showed Dubai as #7 out of the 10 top global destinations while achieving a #2 ranking in global FDI performance in that particular sector. Additionally, Dubai FDI Monitor data showed an increase of 53% in medium to high technology investments during the first half of 2020.

CEO of Dubai FDI, Fahad Al Gergawi emphasized that as the current world leader in global investment destinations, Dubai has already adopted measures to navigate the challenges of the pandemic. He was of the opinion that most of the FDI projects in the H1 2020 were marked by innovations in technology, cash flow and better operational capabilities. The rising trend of improvement in the economic functioning, confirms the advancement of investments in Dubai.

New Growth Opportunities

Director General of Dubai Economy, His Excellency Sami Al Qamzi, stated that Dubai’s successful development of new investment opportunities were attributed to Foreign Direct Investment trends in the first half of 2020. These new opportunities for sustained expansion and growth in Dubai have presented themselves under Sheikh Hamdan’s leadership and directives. This has made the global and local investment communities stronger despite having to overcome the challenges of the Coronavirus pandemic and has benefited DIFC company formation.

In addition to this, Al Qamzi stated that the first half of 2020 saw positive developments in Dubai’s and the UAE’s investment environments that were that were supported by UAE FDI laws and regulations as well as business continuity stimulus packages. Al Qamzi went on to praise the private sector’s role as a strategic partner in overcoming the many challenges of the COVID-19 pandemic. This increased the competition and resilience of the Dubai economy while at the same time ensuring that supply chains wouldn’t be interrupted.

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Dubai Remains the Leading Global Destination for Foreign Direct Investments (FDI’s)

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