– The UAE ranked second globally in greenfield FDI projects in 2023, with 1,323 project announcements, showing a 33% rise compared to 2022, according to the UNCTAD 2024 World Investment Report.
– FDI inflows into the UAE reached $30.688 billion in 2023, marking a 35% year-on-year increase, while FDI outflows decreased to $22.328 billion.
– Key sectors driving the growth of greenfield investments included business services, software, and IT, contributing to a 7.5% rise in jobs and a 37% increase in capital inflows, according to UAE Ministry of Investment officials.
The UAE ranked second globally after the United States in greenfield FDI project announcements for 2023, with 1,323 projects, marking a 33% increase from 2022, according to the 2024 World Investment Report by the UN Conference on Trade and Development (UNCTAD).
In 2023, the UAE attracted $30.688 billion in FDI inflows, up from $22.737 billion in 2022—a year-on-year growth of 35%, according to Emirates News Agency (WAM). Meanwhile, FDI outflows totaled $22.328 billion, down from $24.833 billion in 2022. The UAE’s FDI outflow stock increased to $262.208 billion in 2023 from $239.880 billion the previous year.
A greenfield investment refers to a type of foreign direct investment (FDI) where a parent company builds a new business operation from scratch in a foreign market, according to Corporate Finance Institute website.
The UAE also climbed two spots in the global ranking of top destinations for greenfield projects after entering the top five in 2022. The UAE attracted around 60% of the total FDI into the Gulf Cooperation Council (GCC), which more than doubled to $37 billion, according to UNCTAD.
Mohammed Abdul Rahman Al Hawi, Under-Secretary of the UAE Ministry of Investment, stated that the key drivers of greenfield investment growth in 2023 were business services, software, and IT sectors, which generated significant job creation and capital inflows. Other sectors, including financial services, industrial equipment, transportation, and warehousing, also played pivotal roles in this growth.
“These investments led to a 7.5 percent rise in total jobs created, along with a 31 percent increase in the number of announced projects, and a 37 percent rise in announced greenfield Foreign Direct Investment (FDI) capital inflows,” Al Hawi told Emirates News Agency (WAM).
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