KUWAIT -- The UAE topped the list of Arab destinations for foreign direct investment (FDI) in 2025, attracting $48.2 billion, representing 40.4 percent of the total. It also ranked first in the Arab world and 17th globally in Dhaman's 2025 Composite Investment Climate Index, improving by two places compared with the 2024 index.
According to UNCTAD estimates cited in Dhaman's annual report, FDI inflows to Arab countries fell 10 percent to $119.3 billion in 2025. More than 80 percent of total inflows were concentrated in three Arab countries, while the region's share of global FDI declined to 7.3 percent and its share of FDI to developing economies fell to 13.3 percent.
Dhaman revealed that the average Arab ranking remained stable at 102nd place globally in its composite index of investment climate components for 2025. This reflects the continued gap from the global average ranking of about 23 places, despite 13 Arab countries recording an improvement in their rankings within the index.
In its 41st Annual Investment Climate Report 2026, launched on Wednesday from its headquarters in Kuwait, the corporation recommended adopting integrated and flexible programmes to enhance the Arab investment environment.
