UAE AI Infrastructure Draws 29 Percent Of Greenfield FDI Capital Spending

Automotive manufacturing accounted for more than 30 percent of greenfield foreign direct investment capital expenditure in the UAE in 2025, while communications projects — including data centres and artificial intelligence infrastructure — took 29 percent.

The figures came as inward FDI reached a record $48.3 billion for the fourth consecutive year, according to UAE Investment Minister Mohamed Hassan Alsuwaidi in statements to WAM at the launch of the Ministry of Investment’s UAE Foreign Direct Investment Report 2026.

The UAE rose to ninth place among the world’s leading FDI destinations and exceeded the interim 2025 target of $37 billion.

That result places the country at approximately 74 percent of the National Investment Strategy 2031 goal for annual inward FDI inflows.

FDI growth and 2031 targets

The strategy aims to lift annual inward FDI to AED240 billion, or $65 billion, by 2031.

It also sets a target of AED2.2 trillion, or $600 billion, in total FDI stock.

The UAE’s inward FDI stock stood at $318.9 billion at the end of 2025, equivalent to 53 percent of the strategy’s cumulative target.

Estimates of domestic direct investment ranged from $100 billion to $119 billion, about 2.5 times annual inward FDI inflows.

Alsuwaidi linked that domestic capital base to investor familiarity with the UAE’s policy environment and growth prospects, as well as its contribution to infrastructure, sectors and the knowledge base that attract foreign capital.

Greenfield investment by sector

Automotive manufacturing led greenfield FDI by capital expenditure, followed by communications.

The communications figure was driven by investment in data centres and AI infrastructure.

Real estate recorded $1.9 billion in capital expenditure, representing 71 percent year-on-year growth.

Transportation and storage ranked fourth in greenfield capital expenditure, reflecting the UAE’s position as a logistics and trade hub.

The sector mix aligns with the government’s broader investment strategy, which prioritizes advanced technology and AI alongside industrial, property and logistics activity.

Compute capacity and AI priorities

Alsuwaidi said AI could contribute approximately 14 percent of the UAE’s GDP by 2030, which he described as the largest proportional contribution and fastest growth rate in the Middle East.

AI and advanced technology are priority sectors under the National Investment Strategy 2031.

The Ministry of Investment is developing ecosystems that combine computing infrastructure, scientific research and talent development.

Mohamed bin Zayed University of Artificial Intelligence is part of that effort, alongside incentives for companies and sectors adopting automation and AI.

The infrastructure already includes cloud regions established in the UAE by the world’s three largest cloud computing providers.

The country’s data-centre base has total capacity exceeding 250 megawatts, with another 500 megawatts under development.

UAE as a net capital exporter

The UAE’s outward FDI reached $63.4 billion in 2025, while outward FDI stock reached $402.7 billion by year-end.

That exceeded inward FDI stock and placed the country among a limited group of economies that are net exporters of capital globally.

Outbound mergers and acquisitions reached a record $18.2 billion across 117 transactions in 2025.

Major national institutions led the activity, supported by growing participation from private-sector companies and small and medium-sized enterprises.

Alsuwaidi said the structure of FDI is becoming increasingly aligned with the national economy and its main growth sectors.

The $48.3 billion inward inflow and $318.9 billion inward stock at the end of 2025 mark the reported scale of international investment, while the larger outward stock reflects the UAE’s expanding role as a global source of capital.