UAE solidifies ranking as world’s most attractive investment hub

The UAE has cemented its position as one of the world’s most attractive destinations for investment, underpinned by an open economic system that offers a secure and inclusive operational environment.

This approach, rooted in the nation’s values of coexistence, openness and equal opportunity, successfully draws global talent and capital.

Official data confirmed the UAE’s status as a top global destination for high-net-worth individuals and investors.

This success is driven by pioneering legislative and economic reforms that have enhanced the business climate and ensured high levels of stability and confidence.

Following the Federal Decree Law, which allows 100 per cent foreign ownership of commercial companies, the number of businesses operating in the UAE has soared by 235 per cent over the past five years, reaching over 1.3 million by the end of H1 2025, up from approximately 400,000 in 2020.

Updating over 80 per cent of economic legislation in the last three years has also resulted in qualitative leaps in business development, aligning with the UAE’s shift toward a knowledge, innovation, and advanced technology-based economy.

Global confidence in the investment landscape is further evidenced by the registration of 402,311 local and international trademarks by the end of September 2025. Senior officials and investors, in statements to WAM, confirmed the nation’s tolerance-based system is a key factor in its economic success, boosting its appeal for global companies and innovative talent.

Saeed Al Gergawi, Vice President of Dubai Chamber of Digital Economy, noted that the UAE provides an integrated environment for companies, including start-ups, to expand and test new technologies like AI in cooperation with the government.

He also highlighted the government’s efforts to involve the private sector in drafting business legislation and cited events like “Expand North Star”-the largest exhibition for start-ups-as crucial for enabling businesses to explore the local market and attract global investment.

Yusuff Ali MA, Chairman of Lulu Retail and Chairman of Lulu Group, praised the UAE as a global model for tolerance and mutual respect, noting the country has successfully established values of compassion and unity since the era of the Founding Fathers. He pointed out that the UAE hosts over 200 nationalities living in harmony, a diversity he considers a major source of the nation’s strength. Ali’s own group is a prime example, employing staff from over 47 nationalities.

Dr. Brian Shegar, Emeritus Chairman and Senior Advisor of the UAE-Singapore Business Council, said the ease of business and advanced economic legislation are the main factors driving Singaporean companies to choose the UAE for regional expansion. Approximately 700 Singaporean companies use the UAE as their regional headquarters, a strong indicator of confidence in the investment climate.

He lauded the ambitious economic vision that has made the UAE a key partner for Singapore and a pivotal centre for trade between Asia and the Middle East.

‏Sam Armani, Senior Vice President of Business Development at mimik Technology, called the UAE’s economic environment a global model for openness. This was key to the company’s decision to expand operations by establishing a new entity in Abu Dhabi.

Armani noted that mimik selected the capital as its regional hub for its advanced digital infrastructure, flexible policies, and comprehensive government support for innovative firms, making it ideal for developing solutions in autonomous mobility and smart system management across sectors like oil, gas, and ports.

Meanwhile the UAE continues to strengthen its position as a leading destination for tourism investment, supported by an attractive investment environment, advanced infrastructure, and policies that foster sectoral growth.

The UAE’s tourism sector is witnessing a surge in investment opportunities across all areas — from infrastructure development to hotels, resorts, entertainment projects, and sustainable tourism initiatives aligned with the country’s green economy goals.

Government entities continue to play a pivotal role by launching strategic initiatives to enhance tourist destinations, support innovation, and collaborate with the private sector to uphold the highest standards of quality and excellence.

Through its National Tourism Strategy 2031, the UAE aims to rank among the world’s top tourist destinations. The strategy seeks to increase the tourism sector’s contribution to the GDP to AED450 billion, attract Dhs100 billion in new investments, and welcome 40 million hotel guests annually by 2031. Last year, the UAE recorded strong growth and significant achievements in tourism. Hotel revenues reached nearly Dhs45 billion, marking a 3% increase compared to 2023. Hotel occupancy rose to 78%, one of the highest rates both regionally and globally.

WAM