The UAE presents its global financial ambitions, foreign direct investment increased by 48.7% to 45.6 billion. USD

The UAE Ministry of Investment has released a new white paper titled “From Capital Exporter to Financial Architect: The UAE's Evolving Role in Global Finance,” in which it describes how the country has transformed into one of the most dynamic and future-ready financial ecosystems in the world.

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The report provides a detailed overview of the UAE's evolution from a traditional exporter of capital to a globally connected financial hub encompassing banking, asset and wealth management, insurance, fintech, Islamic finance, sustainable finance and digital assets.

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The White Paper traces the evolution of the UAE financial sector from the establishment of its fundamental institutions in the early 2000s to its current role as a trusted recipient and reliable exporter of global capital.

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It highlights how the government's long-term vision, thoughtful policy decisions, sustained investment in infrastructure and far-sighted regulation have underpinned this transformation and strengthened the country's international financial standing.

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Foreign Direct Investment in UAE
The central theme of the report is the role of foreign direct investment (FDI) in accelerating the development of the UAE financial services sector. Despite the slowdown in global FDI flows in 2024, the UAE recorded a year-on-year increase in investment inflows of 48.7% to 45.6 billion. USD, making the country officially ranked among the top ten destinations for FDI in the world.

As of 2022, finance and insurance accounts for 21% of foreign direct investment into the UAE, underscoring the growing importance of the sector to the entire economy.

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Mohamed Hassan Alsuwaidi, UAE Minister for Investment, said: “Under the leadership of a clear and progressive economic vision, the UAE has evolved from a traditional exporter of capital into a proactive architect of the global financial ecosystem.

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“Foreign direct investment has played a key role in this transformation, supporting the financial sector's consistent contribution of 9 to 10 percent of GDP between 2018 and 2024, underscoring its role in economic diversification and long-term resilience, while strengthening the UAE's position as a leading center of international capital.
“Through the Department for Investment, we remain committed to creating an agile, future-ready and globally connected investment ecosystem that supports responsible innovation and sustainable growth. “

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Multi-jurisdictional framework
The White Paper also points to the UAE's institutional architecture as a key factor in its financial transformation. Platforms including the Abu Dhabi Securities Exchange, Abu Dhabi Global Market, Dubai Financial Market and Dubai International Financial Centre have created a multi-jurisdictional regulatory ecosystem that is compliant with international standards.

This structure encouraged the development of sophisticated capital markets and boosted investor confidence.

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In line with the UAE's innovation-focused approach, the report highlights key initiatives such as a financial infrastructure transformation program, the introduction of instant payment platforms, digital dirhams, dirham-backed stablecoins and specially created frameworks for digital assets.
According to the white paper, these initiatives have strengthened the UAE's position as one of the most cryptocurrency-friendly and fintech markets in the world, while fostering broader financial inclusion and efficiency.

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Global competitiveness
The presentation of leading international participants along with investment platforms created in cooperation with the United Arab Emirates is cited as evidence of the strength and global competitiveness of the country's financial ecosystem.

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Its publication confirms the UAE's commitment to expanding opportunities for global investors, innovators and institutions looking to participate in their rapidly evolving financial environment.

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Source: Arabic Business