Consider the following statements regarding Foreign Direct Investment (FDI) into Dubai:

1. Dubai has been ranked as the world’s top destination for Greenfield FDI projects.

2. For the year 2024, India has become the top source for FDI into Dubai.

Which of the statements given above is/are correct?

The correct answer is option 3.

In News

• Dubai has retained its position as the top global destination for Greenfield Foreign Direct Investment (FDI) projects in 2024, with India emerging as the leading source country for FDI into Dubai.

Key Points

• According to Financial Times Ltd.'s ‘fDi Markets’ data, Dubai has been ranked the world’s No.1 destination for Greenfield FDI projects for the fourth consecutive year (2021-2024).
  • Greenfield FDI refers to investments where foreign companies establish new operations, such as factories, offices, or infrastructure, rather than acquiring existing assets. Hence, Statement 1 is correct.
• India has become the top source of FDI into Dubai for the year 2024, contributing 21.5% of total investments.
  • Other major FDI contributors include the U.S. (13.7%), France (11%), and the U.K. (10%), as per Dubai Department of Economy and Tourism’s Dubai FDI Monitor. Hence, Statement 2 is correct.
  • The increasing number of Indian entrepreneurs, consultants, and businesses relocating to Dubai is a key driver behind this trend.

Additional Information

• Dubai’s FDI attractiveness is driven by:
  • A business-friendly regulatory environment
  • Favorable tax policies (including no personal income tax)
  • Strategic location as a global trade hub
  • Strong infrastructure and ease of doing business ranking.
• The rise in Indian investments in Dubai reflects a shift in global economic and trade patterns, with Indian firms expanding their international footprint.