Greenfield foreign direct investment (FDI) into the UAE surged 78 per cent year-on-year to a record $33.2 billion in 2025, underlining the country’s growing appeal as a global investment destination, according to Emirates NBD Research.

The UAE ranked 10th globally by greenfield FDI capital inflows and second worldwide by number of announced projects, with 1,491 projects recorded during the year, a 10.7 per cent increase from 2024. The sharp rise reflects broad-based international investor confidence, supported by large-scale manufacturing, digital infrastructure and energy-transition investments.

India emerged as the leading source of greenfield FDI capital into the UAE in 2025, contributing $12.58 billion across 275 projects, driven primarily by a landmark USD 10 billion smart manufacturing investment by Erisha E Mobility in Ras Al Khaimah. The United States ranked second, investing $10.3 billion across 219 projects, anchored by Microsoft’s data centre expansion and the Stargate AI campus in Abu Dhabi.

The United Kingdom topped the project count with 291 projects, though total investment stood at a more modest $1.16 billion, reflecting smaller-scale services and technology operations. Other key contributors included China ($1.27 billion), France ($1.17 billion), Kuwait ($962.8 million), Hong Kong ($777.8 million) and Germany ($702.7 million).

Within the UAE, Dubai remained the primary destination by volume, attracting 1,202 projects, or 81 per cent of the total, with capital inflows of $8.45 billion, making it the world’s second-largest city recipient of greenfield FDI projects. Ras Al Khaimah emerged as the largest recipient by capital, drawing $10.61 billion across 17 projects, placing it sixth globally for greenfield FDI capital inflows in 2025.

Abu Dhabi secured 180 projects worth $5.19 billion, supported by investments in artificial intelligence, cloud computing and advanced manufacturing, while Sharjah attracted 46 projects valued at USD 1.8 billion, reflecting continued diversification into industrial and services sectors.

Sectorally, automotive original equipment manufacturing (OEM) attracted the highest capital investment at $10.29 billion, despite accounting for only five projects. This was driven entirely by the Erisha Smart Manufacturing Hub in Ras Al Khaimah, a 25-million-sq-ft facility focused on electric vehicles, hydrogen technologies and semiconductors. The communications sector followed closely with $9.93 billion across 40 projects, led by data centre and AI investments from global technology majors, the report said.

Over the 2021–2025 period, the UAE attracted a cumulative $98.4 billion in greenfield FDI across 5,603 projects, representing a compound annual growth rate of 32.3 per cent in announced capital inflows. The number of foreign companies investing in the UAE nearly tripled during this period, rising from 491 in 2021 to 1,440 in 2025, reinforcing the country’s position as a leading global hub for long-term, productivity-enhancing investment, Emirates NBD Research said. - TradeArabia News Service