UAE Leads Arab World in 2025 Foreign Direct Investment

The United Arab Emirates became the top recipient of foreign direct investment in the Arab world for 2025, attracting $48.24 billion. According to the UN Conference on Trade and Development, this figure represents a 6 percent increase and ranks the country ninth globally. Growth was primarily driven by greenfield investments in manufacturing and telecoms and digital infrastructure, which together created over 65,000 new jobs.

While inbound capital grew, the UAE also served as a major source of outbound investment, deploying over $63 billion globally into megaprojects across Egypt, Tunisia, and Mauritania. Mohamed Alsuwaidi noted that the composition of the inbound capital made 2025 a distinctive year, while Sheikh Mohammed bin Rashid attributed the results to a national vision.

Despite these gains, the UN Conference on Trade and Development warns that the 2026 outlook is uncertain. The organization cited macroeconomic weaknesses and geopolitical tensions, specifically noting that the start of the Iran war in February created a major adverse shock to the global investment environment. This instability coincides with a broader regional trend, as Dhaman reported that total FDI inflows to Arab countries fell 10 percent to $119.3 billion in 2025.