Foreign direct investment surges in UAE as new trade pacts pile up

Foreign direct investment in the UAE soared 48% last year as the Gulf state bolstered its international ties through a series of free-trade agreements.

Sheikh Mohammed bin Rashid, the UAE Vice President and Ruler of Dubai, hailed the milestone on Thursday, calling the $45.5 billion (AED 167 billion) in FDI an “international vote of confidence” in the Emirati economy.

The UAE, which is the Arab world’s second-largest economy after Saudi Arabia, accounted for 37% of total foreign investment in the region, Sheikh Mohammed said, citing the U.N. Conference on Trade and Development’s 2024 World Investment Report.

The government has launched a series of initiatives that helped boost FDI, including reducing visa restrictions, speeding up professional licensing procedures, issuing golden visas for foreign residents and providing generous incentives to attract tech companies, The National reports.

The UAE also widened its campaign to sign free-trade pacts known as the Comprehensive Economic Partnership Agreements, adding deals with Costa Rica, South Korea, Chile and Australia in 2024.