UAE steadily advancing towards targets of National Investment Strategy 2031, cementing its global investment position: Minister of Investment

ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 08th Jul, 2026) Mohamed Hassan Alsuwaidi, UAE Minister of Investment, affirmed that the United Arab Emirates continues to strengthen its position as a leading global investment destination, supported by an advanced economic and legislative framework and a clear strategic vision aimed at enhancing the country's competitiveness and attracting high-quality investments.

In statements to the Emirates news Agency (WAM) on the occasion of the Ministry of Investment's launch of the UAE Foreign Direct Investment Report 2026, which highlights the country's record performance during 2025, he said that inward foreign direct investment (FDI) inflows reached a historic US$48.3 billion for the fourth consecutive year. He added that the UAE advanced to ninth place globally among the world's leading FDI destinations.

During the interview, Alsuwaidi outlined the key features of the UAE's investment landscape and its strategic priorities for the coming period.

Regarding the UAE's targets for attracting foreign direct investment in the coming years and the sectors receiving the greatest interest from global investors, Alsuwaidi said that the National Investment Strategy 2031 sets clear objectives, including increasing annual inward FDI inflows to AED 240 billion (approximately US$65 billion) and raising the country's FDI stock to AED 2.2 trillion (approximately US$600 billion) by 2031.

He added that the UAE is making steady progress toward achieving these targets. In 2025, inward FDI inflows reached a new record of US$48.3 billion, surpassing the interim target of US$37 billion set for 2025. This represents approximately 74% of the 2031 annual inflow target and 53% of the cumulative FDI stock target.

The Minister of Investment explained that the automotive manufacturing sector ranked first among sectors attracting greenfield foreign direct investment in terms of capital expenditure, accounting for more than 30% of total capital spending. It was followed by the communications sector, driven by investments in data centres and artificial intelligence infrastructure, with 29% of capital expenditure.

he real estate sector recorded capital expenditure of US$1.9 billion, representing 71% year-on-year growth, while the transportation and storage sector ranked fourth in terms of greenfield capital expenditure, reflecting the UAE's position as a global logistics and trade hub.

He noted that estimates of domestic direct investment range between US$100 billion and US$119 billion, equivalent to approximately 2.5 times the annual inward FDI inflows. He said this reflects the confidence of investors who are most familiar with the country's policy environment and growth prospects, while contributing to the development of sectors, infrastructure, and the knowledge base that attract foreign capital.

He stressed that the UAE will continue this approach during the next phase by developing policies and regulations, reducing barriers to market entry, improving the operating environment, expanding global partnerships, and providing additional institutional support to accelerate the deployment and expansion of investments through the National Investment Fund, which was established with initial capital of approximately US$10 billion.

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These efforts will further strengthen the UAE's position among the world's leading investment and business destinations.

On attracting investment in artificial intelligence and advanced technology, Alsuwaidi said the UAE was an early adopter of AI technologies in government operations, recognising their pivotal role in shaping the economy of the future. He noted that artificial intelligence and advanced technologies are now among the highest priorities for investors worldwide.

He added that estimates indicate artificial intelligence will contribute approximately 14% of the UAE's GDP by 2030, representing the largest proportional contribution and the fastest growth rate in the middle East.

The Minister explained that artificial intelligence and advanced technology are among the priority sectors under the National Investment Strategy 2031. The Ministry is working to build integrated ecosystems that include computing infrastructure, scientific research, and talent development, including through Mohamed bin Zayed University of Artificial Intelligence, while directing incentives toward companies and sectors that are leading in automation and AI adoption.

Alsuwaidi pointed out that the communications sector, which includes data centres and AI infrastructure, accounted for approximately 29% of greenfield FDI capital expenditure in 2025, making it the second-largest recipient of this type of investment. This growth has been supported by the establishment of cloud regions in the UAE by the world's three largest cloud computing providers, as well as a data centre base with a total capacity exceeding 250 megawatts, with an additional 500 megawatts currently under development.

He added that the UAE has consolidated its position as a leading global investor through the efforts of its sovereign investment institutions and the growing participation of leading national companies and small and medium-sized enterprises. Outward foreign direct investment from the UAE reached US$63.4 billion in 2025, while the country's outward FDI stock stood at US$402.7 billion by the end of the year, exceeding inward FDI stock and placing the UAE among a limited group of economies that are net exporters of capital globally.

He further noted that UAE companies continue to strengthen their international presence. Outbound mergers and acquisitions reached a record US$18.2 billion across 117 transactions in 2025, led by major national institutions and supported by the increasing participation of private-sector companies, reflecting the depth and global reach of the UAE's investment ecosystem.

Alsuwaidi concluded by affirming that the structure of foreign direct investment is becoming increasingly aligned with the structure of the national economy and its key growth sectors. He said the record inward FDI inflows of US$48.3 billion, together with the increase in the UAE's inward FDI stock to US$318.9 billion by the end of 2025, underscore the attractiveness of the country's investment environment and the strong confidence of international investors in the UAE.