Foreign Direct Investment (FDI) in the UAE
According to the World Investment Report 2024 issued by the United Nations Conference on Trade and Development (UNCTAD), the value of foreign direct investment (FDI) inflows to the UAE in 2023 amounted to USD 30.688 billion compared to USD 22.737 billion in 2022, to rank 2nd globally in FDI inflows.
The UAE provides numerous incentives to investors, and promotes entrepreneurship. It implements incentives to attract FDI. Incentives include the opportunity for investors of different nationalities to establish and own companies fully. One of the initiatives in NextGenFDI, a collaborative effort between government and private entities. The initiative facilitates expedited licensing and incorporation procedures for cutting-edge technology companies looking to establish their presence in the UAE.
The establishments would be in accordance with the lists published by local authorities, except for specific sectors deemed as Activities with Strategic Impact. In these cases, full ownership is subject to the approval of the regulatory authorities overseeing these sectors.
Promising foreign investment sectors in the UAE
The UAE is actively engaged in incentivising new economic sectors in the knowledge and digital economy. Ministry of Economy identifies the below mentioned sectors as highly promising:
- fintech
- eCcommerce
- agritech
- health care
- education
- tourism
- space
- logistics services
- information and communications technology
- manufacturing
- medical tourism
- renewable energy
- media and entertainment
- creative industries
- gaming
- smart cities.
Read more about FDI on the ‘Grow in UAE’ portal.
Useful links:
- Foreign investment in the UAE – Ministry of Economy
- FAQs about investment in the UAE – Ministry of Economy
- Foreign Investor Guide - A Practical Guide to Requirements and Procedures (PDF, 500 KB) - Ministry of Economy
Legal form of FDIs
FDI projects may take any of the following legal forms:
- public joint stock company
- private joint stock company
- limited liability company
- limited partnership company
- partnership company.
Licensing procedures
The licensing authority and the competent authority in any of the emirates of the UAE, concerned with the affairs of foreign direct investment, each within its jurisdiction will specify the conditions and procedures required to establish and license foreign direct investment projects listed in the Positive list and the documents required in accordance with the provisions of the FDI law and other the federal or local laws in force. The following image shows steps for licensing FDI projects in the Positive list.
Learn about the business regulations applicable in the UAE and laws that are specific to the industry.
Check the UAE Foreign Direct Investments Dashboard from Ministry of Economy.
Supporting foreign direct Investment in the various emirates
- Foreign Direct Investment in Abu Dhabi
Abu Dhabi Investment Office (ADIO) is the government hub supporting investment in the emirate of Abu Dhabi. ADIO enables opportunities for domestic and foreign investors aligned with Abu Dhabi’s economic priorities. It has launched many projects that encourage foreign investments. View investor journey with ADIO. Investors can also apply for a virtual licence to fully own and conduct economic activities either under a Limited Liability Company or Sole Proprietorship LLC. Request for a virtual licence.
Read:
- Abu Dhabi Investor Guide (PDF, 500 KB) – ADIO
- Infrastructure partnerships guidebook (PDF, 750 KB) – ADIO
- Healthcare facilities with 100 per cent foreign investors ownership – Department of Health, Abu Dhabi
- Investor journey – TAMM
- View services from Department of Economic Development, Abu Dhabi – TAMM
- Foreign Direct Investment in Dubai
Dubai FDI offers essential information and invaluable support to foreign companies who intend to invest in Dubai. Dubai FDI guides, advises and provides practical assistance with all aspects of business decisions and management, starting from determining the best legal structures to identifying the appropriate business activities.
- Foreign Direct Investment in Sharjah
Sharjah Investment and Development Authority (Shurooq) launched Sharjah FDI Office (Invest in Sharjah) to promote a diverse set of investment opportunities in the emirate. Sharjah FDI Office helps investors to fully understand processes, investment advantages and insights on key sectors that fit their business profiles.
Updated On :
29 Oct 2024
