Trust Emerges as the Defining Factor in Global Investment Competition, Says UAE Investment Minister
Mohamed Hassan Alsuwaidi, Minister of Investment, highlights how institutional confidence, policy stability and market access have propelled the UAE to ninth place globally in foreign direct investment rankings, with inflows more than doubling since 2023.
Trust has become the paramount differentiator separating investment destinations in an era of volatile global capital flows, according to Mohamed Hassan Alsuwaidi, Minister of Investment and Co-Chair of the Investopia Board of Trustees.
Speaking during Investopia Bridge 2026, Mr Alsuwaidi outlined three foundational pillars upon which investor confidence rests: transparent and consistent policy frameworks, comprehensive legislative protections that safeguard investor interests, and an extensive network of strategic partnerships enabling reliable market access.
The UAE has embodied these principles through substantive policy measures, including permitting complete foreign ownership across most economic sectors, executing Comprehensive Economic Partnership Agreements and establishing robust investment cooperation frameworks. Notably, domestic direct investment—a trusted barometer of investor confidence—reached between USD 100 billion and USD 119 billion in 2025, more than double the level of foreign direct investment inflows.
Strategic Competitive Advantages
The Minister emphasised the UAE’s distinctive positioning as a single destination offering what investors typically pursue across multiple markets. Geographically, two-thirds of global population resides within an eight-hour flight radius, whilst the nation’s 12 commercial ports and airport network spanning more than 250 international destinations provide unparalleled connectivity. The UAE ranks third globally in skilled labour availability and first internationally in entrepreneurship policies according to the Global Innovation Index 2025.
The National Investment Fund, capitalised at AED 36.7 billion, delivers tailored financial incentives for transformative investments. The Ministry has streamlined procedures, unified economic activity codes across all seven emirates and strengthened investment protection frameworks, thereby reducing market entry costs and accelerating the transition from investment decision to operational commencement.
Adapting to Evolving Investor Priorities
Contemporary investors prioritise certainty above immediate returns, Mr Alsuwaidi observed, reflecting intensifying competition amongst investment destinations. The UAE has strategically anticipated this shift through its National Investment Strategy 2031, positioning artificial intelligence and advanced technology as priority sectors.
The nation ranked first globally in artificial intelligence talent concentration growth according to Stanford University’s 2026 AI Index Report, whilst Microsoft has committed USD 15.2 billion in investments across 2023 to 2029. Infrastructure development and sustainability initiatives, including the UAE Net Zero by 2050 strategic framework and expanding clean energy capacity, provide additional assurances for energy-intensive industries, particularly data centres.
Measurable Impact and Future Momentum
Beyond investment volume, the Ministry monitors employment generation as a key success indicator. Greenfield investment projects announced in 2025 are projected to create over 65,000 jobs, representing a 31.6 per cent year-on-year increase and 2.5 times the 2021 level. The expanding proportion of research, development, regional headquarters and information technology positions within foreign direct investment employment demonstrates substantial knowledge and technology transfer.
The UAE’s foreign direct investment ranking has advanced seven positions since July 2023, rising from 16th globally to ninth in 2025, whilst inward FDI flows more than doubled from AED 84 billion to a record AED 177.3 billion. The nation maintained second position globally in greenfield investment project numbers for three consecutive years, attracting 1,562 new projects in 2025 alone with capital expenditure of USD 34.1 billion. Total FDI stock reached USD 318.9 billion, equivalent to AED 1.17 trillion.
Source: WAM