The UAE cemented its position as the Arab world's top investment destination in 2025, drawing US$48.2 billion in foreign direct investment and accounting for 40.4 percent of all FDI flowing into the region.
The figures come from Dhaman's 41st Annual Investment Climate Report, launched Wednesday from the corporation's headquarters in Kuwait.
The UAE also climbed two places in Dhaman's 2025 Composite Investment Climate Index, securing 17th position globally and first place among Arab nations. Qatar followed in second place regionally and 38th worldwide, while Saudi Arabia ranked third regionally and 40th globally.
The broader regional picture proved less encouraging. Citing UNCTAD estimates, Dhaman reported that total FDI inflows to Arab countries dropped 10 percent to US$119.3 billion, with more than 80 percent of that investment concentrated in just three countries. The region's share of global FDI slipped to 7.3 percent, and capital expenditure on FDI projects across the Arab world fell 9 percent to US$112 billion, a decline the report attributed to geopolitical instability.
The average Arab ranking held steady at 102nd globally, leaving a persistent 23 place gap behind the worldwide average despite improvements recorded by 13 Arab countries.
To close that gap, Dhaman called for coordinated reforms across four areas covering political and security stability, institutional and legal modernisation, economic policy, and human capital development. Recommendations included simplifying investment laws, digitising government procedures, curbing inflation, and expanding vocational training to address skills shortages.
Beyond the UAE, GCC states along with Jordan and Morocco dominated the top of the regional rankings, while 11 other Arab countries placed between 104th and 158th globally, underscoring a widening divide in investment competitiveness across the region.
News Source: Emirates News Agency
