Inversió estrangera directa (IED) als Emirats Àrabs Units

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

Strong Points

The strengths of the country for FDI are:

• No direct taxation of corporations (apart from oil, banking and insurance sectors) or of individuals
• No foreign exchange control or constraints related to repatriation of funds
• Good-quality business climate
• Long-term political stability
• Dynamic and diversified economy
• Very rich hydrocarbons resources
• Solid and profitable banking sector with a powerful sovereign fund and favourable regulations for foreign investments
• Geographical location of the country, making it a potential platform of influence on the Gulf, Iran, Asia and the Middle-East
• Low-cost foreign labour force
• Good transport and production infrastructure (financed by hydrocarbon income)
• Access to low-cost energy

Weak Points

Some of the disadvantages for FDI include :

• Heavy dependence on hydrocarbons
• Reliance on imports of lots of manufactured goods
• A lack of flexibility in monetary policy
• Inadequacy of the national statistical system
• Degradation of the regional geopolitical environment
• Legal obstacles to foreign investment.

Government Measures to Motivate or Restrict FDI

All seven Emirates have adopted measures to create a more favourable environment for foreign investors. Dubai, Sharjah and Abu Dhabi have very flexible rules concerning the acquisition of real estate property by foreigners. The Government of the UAE has also recently passed a new Companies Law. In free zones, foreign investors may hold 100% of a company's shares. The primary benefits of setting up a business in the free zone include exemptions from import and export tax, corporate tax and personal income tax.

Abu Dhabi and Dubai have also implemented a dual licensing regime: entities located in the free zones may be authorised to carry out commercial activities outside the free zone in selected sectors specifically authorised by the Department of Economic Development for that emirate.

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.  A negative list of economic sectors limited by 100 per cent foreign ownership includes 14 large industries.  The Council of Ministers approved on 3 March 2020 a positive list of economic sectors eligible for 100% foreign ownership.  This list includes activities in 13 sectors, including renewable energy, space, agriculture, manufacturing, transport and logistics, hospitality and food services, information and communication services, professional and scientific and technical activities, administrative and support services, education, health care, art and entertainment and construction.
Despite these projects, the regulatory and legal framework still favours national investors. There is no national treatment for investors in the United Arab Emirates and foreign ownership of land and shares remains limited. Foreign investors underline the weakness of the arbitration proceedings, the weakness of intellectual property rights and the lack of transparency. 

Finally, the regulatory framework for enterprises varies depending on the Emirate. The government of Abu Dhabi is particularly willing to improve the business climate in its emirate and is deploying Abu Dhabi Economic Vision 2030 to attract FDI in the non-oil sectors (industry, tourism, transport and logistics, financial services, real estate and telecommunications).

Abu Dhabi Investment Office (ADIO) is the government hub supporting investment in the emirate of Abu Dhabi. Dubai FDI offers essential information and invaluable support to foreign companies who intend to invest in Dubai.

Bilateral investment conventions signed by the United Arab Emirates

UAE has signed 50 bilateral agreements on investment, though not all of them have entered into force. See the list of countries provided by the UNCTAD.