United Arab Emirates: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2024, the UAE saw its FDI inflows increase from USD 22.7 billion in 2022 to USD 30.6 billion in 2023 (+34.5%), being the 11th destination globally in terms of investment attraction and ranking second after the U.S. in greenfield FDI project announcements, reaching 1,323—a 33% increase from 2022. At the end of the same period, the stock of FDI reached USD 225 billion. An updated regional and sectoral breakdown is not available at the national level; however, for the Emirate of Dubai, in 2023, the top five sources of FDI capital were Canada (26.5%), the U.S. (17.5%), Saudi Arabia (8.9%), the U.K. (8.2%), and India (5.5%), accounting for 66.6% of total inflows. Canada’s leading share was driven by Brookfield Business Partners’ USD 2.76 billion acquisition of Network International in Dubai. The top five sectors accounted for 67.6% of Dubai's total estimated FDI capital in 2023. Financial services led with a 29.1% share, driven by Brookfield’s USD 2.76 billion acquisition of Network International. Business services followed at 19%, while consumer products (9.2%), software & IT services (6%), and textiles (4.3%) rounded out the top sectors. Dubai retained its position as the leading global city for attracting greenfield FDI projects in the first half of 2024, according to fDi Markets, with 508 greenfield FDI projects announced, accounting for a 6.2% share of the global total, up from 5.7% in the same period the previous year.

The strengths of the UAE include its political and economic stability, easy access to oil resources, low energy costs, a willingness to diversify the economy and high purchasing power. The absence of direct business taxation (excluding banks, oil companies and telecommunications operators – see after) and direct income taxation, exchange controls and any limitations on the repatriation of capital, as well as the existence of a strong and profitable banking sector, plus a large pool of expatriate labour, are the country's undeniable assets. In addition, the UAE further liberalised its FDI regime with the promulgation of the “FDI Decree 2020”, which facilitated foreign investment by extending some of the free zone incentives to the wider economy. A decision of the Federal cabinet allowed up to 100% foreign ownership for 122 economic activities across 13 industry sectors. The government also launched 50 economic initiatives aimed at making the country more competitive and attracting USD 150 billion into domestic projects by 2030. A slew of 40 laws covering trade, online security, copyright, residency, narcotics and other social issues was implemented, and government entities shifted to a four-and-a-half-day working week (Oxford Business Group). Starting from January 2023, Law No. 25 of 2022 promotes both local and international investment in various industries, including food processing, steel, aluminium, plastics, hydrogen, aerospace, petrochemicals, pharmaceuticals, medical technology, and agricultural technology. This legislation aims to assist manufacturers by simplifying industrial licensing processes, facilitating feasibility studies, and providing financial incentives. It is part of the UAE Ministry of Industry's Technological Transformation Program (TTP), emphasizing the advancement of manufacturing technology. The UAE also launched the "National Investment Strategy 2031" to double cumulative FDI between 2025 and 2031, raising FDI's share of the economy from 15% to 30%. The plan targets increasing FDI stock to AED 1.3 trillion and tripling the cumulative FDI balance to AED 2.2 trillion by 2031. On the other hand, the country’s main weaknesses are the small size of its domestic market, the dependence on imports and the international financial situation, as well as on the hydrocarbon sector. Furthermore, the UAE introduced a federal corporate tax on business profits starting in 2023, with a headline rate of 9% (for incomes exceeding a particular threshold). Several exemptions are available for businesses operating across strategic sectors (e.g. exploitation of UAE natural resources, Government-controlled entities, pension or social security funds, certain investment funds, etc.). The UAE ranks 7th in the 2024 World Competitiveness Index and 22nd out of 184 in the latest Index of Economic Freedom.

What to consider if you invest in the United Arab Emirates

Protection of Foreign Investment

Procedures Relative to Foreign Investment

Freedom of Establishment

The UAE issued Decree Law No. 19 on Foreign Direct Investment (FDI) in September 2018, which grants authorised foreign investment companies the same treatment as domestic companies, to the extent permitted by current legislation. Nevertheless, in practice, increased foreign ownership is limited to a few sectors and linked to costly requirements. Therefore, the cases in which it will be possible and feasible for a company to increase its foreign shareholdings beyond 49% remain rare.

Acquisition of Holdings

The Council of Ministers approved on 3 March 2020 a positive list of economic sectors eligible for 100% foreign ownership. 

Obligation to Declare

There is no special obligation to declare.

Competent Organisation For the Declaration

World Association of Investment Promotion Agencies

Requests For Specific Authorisations

Foreign ownership is restricted in companies that perform certain regulated activities. In the sectors of banking, insurance, health, maritime transport, education, media, and telecommunications, specific authorisations from the ministries in charge are required.

Office Real Estate and Land Ownership

Possible Temporary Solutions

Temporary facilities in the UAE.

The Possibility of Buying Land and Industrial and Commercial Buildings

The Civil Code of the United Arab Emirates (Federal Law no. 5 of 1985, Civil Code) does not provide for any express prohibition against the ownership of foreign land. However, each Emir is entitled to adopt its own laws to regulate the ownership of property.

Risk of Expropriation

Until now, no foreign investor has been concerned by expropriation. There are no fixed federal rules governing compensation for expropriations, and each emirate would probably treat expropriations differently. It is indeed clear that this type of procedure will be used only in case of very serious risks and the compensation would be generous.

Investment Aid

Forms of Aid

The incentives are granted to foreign investors in free zones. The primary benefits of setting up a business in the free zone include exemptions from import and export tax, corporate tax, personal income tax, repatriation of capital and profits, multi-year leases, easy access to sea and airports, buildings for lease, energy connections (often at subsidized prices), and assistance in labour recruitment.

Privileged Domains

No special aids.

Privileged Geographical Zones

The free trade areas in the United Arab Emirates are areas that have special tax, customs and import regimes, and are regulated by their own regulatory framework for foreign investment.

Free-trade zones

Many advantages are given to foreign companies which are established in free zones. These are not subject to the requirement of having a local majority shareholder. Foreign investors can hold 100% of the capital. Moreover, there is no customs duty on imports nor corporate or income taxes. The UAE has more than 40 free zones, including the:

• Jebel Ali Free Zone.
• Dubai Multi Commodities Center.
• Dubai Airport Free Zone.
• Dubai South.
• Dubai Intl Financial Centre.

In general, the free zones focus on different business areas, including shipping, commodities, media, financial services and telecommunication, and have their own regulator.

Public aid and funding organisations

The Arab Trade Financing Program whose mission is to promote Arab exports proposes refinancing possibilities, credit loans for pre-shipment export and buyer's credit.

Investment Opportunities

The Key Sectors of the National Economy

The FDI in the UAE is mainly in the sectors of: wholesale and retail trade, real estate activities, financial services and insurance, manufacturing, mining and quarry exploitation.

High Potential Sectors

Aeronautical equipment and services, defence, franchise, healthcare, education, electrical energy, equipment and services related to the oil and gas industries, renewable energies (huge photovoltaic potential), natural resources management (water treatment).

Privatization Programmes

Abu Dhabi has launched a policy of attracting foreign direct investment and has planned to accelerate the privatisation of ten state-owned companies. Among the relevant sectors are electricity, water and road and air transportation.

Tenders, Projects and Public Procurement

Tenders Info , Tenders in United Arab Emirates
DgMarket , Tenders Worldwide

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors

Telecommunications and post are monopolies. The oil industry is a protected national sector.
State-owned enterprises are powerful in the United Arab Emirates. SOEs are present in a number of sectors, including construction, hospitality, transport, banking and telecommunications (e.g. Emirates Airline, Etihad Airways, Etisalat in telecommunications).

Finding Assistance For Further Information

Investment Aid Agency

Investment Corporation of Dubai
Abu Dhabi Investment Authority

Other Useful Resources

Visit Dubai Portal
UAE Free Zones Directory

Doing Business Guides

Guide to Doing Business in the United Arab Emirates (Baker McKenzie)
Doing business in the UAE (KPMG)
United Arab Emirates - Market Overview (U.S. Department of Commerce)

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