**Dubai**: The emirate sees a 39% surge in venture-capital-backed foreign direct investment in 2024, showcasing its evolving tech ecosystem and enhancing international investor confidence, according to the Department of Economy and Tourism’s FDI Monitor.
Dubai has solidified its status on the global investment stage, particularly in the realm of venture-capital-backed foreign direct investment (FDI), which saw unprecedented growth in 2024. The emirate emerged as a central player in the Middle East and North Africa (MENA) region’s expanding tech and startup ecosystem.
According to the Department of Economy and Tourism’s (DET) FDI Monitor, venture-capital-backed FDI in Dubai surged by 39% in 2024. This significant increase is indicative of enhanced international investor confidence and the city’s evolving innovation infrastructure.
The vibrant startup scene in Dubai has seen a notable rise in venture capital funding, with the number of deals increasing from 79 in 2023 to 110 in 2024. This trend reflects a shift in global investors towards diversification and a greater willingness to embrace risk. Contributing factors include a conducive regulatory environment, supportive government initiatives, and the rapid advancement of the digital economy in the emirate.
As per the MENA Venture Investment Report 2024, published by MAGNiTT, Dubai-based startups attracted $222 million in VC FDI capital, further showcasing the city’s growing attractiveness to global venture firms. In contrast, Pakistani startups raised only $42.5 million in 2024, a decrease from $74 million in 2023, highlighting a stark difference in regional investment dynamics.
Imran Saeed, the CEO of UAE-based fintech platform Encore Pay, attributed Dubai’s upward trajectory to its strategic advantages regarding ease of business operations and capital mobility. Speaking to Business Recorder, Saeed stated, “Jurisdictional comfort is the first—Dubai is a good hub for those conducting business in the Middle East or Africa. Dubai facilitates the process, where one can easily register companies in jurisdictions such as DIFC [Dubai International Financial Centre].”
Encore Pay, having attracted funding from both the United States and Africa, exemplifies how startups and investors increasingly perceive Dubai as a gateway jurisdiction, linking capital markets and regulatory frameworks across different continents. Saeed highlighted that “unhindered capital inflow and outflow, something harder to achieve in parts of Asia and Africa, is central to Dubai’s competitive advantage,” further noting that “the only other country comparable to the UAE is Singapore,” thus reinforcing Dubai’s position as a rising global financial hub.
Investment types in Dubai have also evolved, indicating a shift towards high-technology sectors. In 2024, 54% of announced FDI projects incorporated high to medium technology components, reflecting the emirate’s transition from merely adopting technology to leading technological advancements. Saeed remarked, “The Middle East used to adopt technologies being developed by other nations. Now, they are aiming to become tech leaders, investing heavily in the AI frontier.”
The DIFC has played a crucial role in nurturing a robust fintech and VC ecosystem, aiding in Dubai’s recognition as one of the top five global fintech cities according to the latest Global Financial Centres Index (GFCI).
Additional data illustrates the broader investment landscape in Dubai: reinvestments nearly doubled with a 98% increase; mergers and acquisitions rose by 8%; and new forms of investments grew by 23%. Furthermore, for the fourth consecutive year, Dubai maintained its global leadership in greenfield FDI projects, as reported by fDi Markets (Financial Times Ltd).
Looking ahead, Dubai’s ability to attract high-value, technology-focused capital is reflective of a long-term strategy that aligns economic diversification with digital innovation. As founders, venture capitalists, and tech leaders increasingly focus on stable, tax-efficient, and innovation-driven ecosystems, Dubai is positioned as a modern hub for capital formation and startup success. The global venture capital community is beginning to perceive Dubai not only as a gateway to the Middle East but as a destination in its own right.
Source: Noah Wire Services
- https://www.dubaidet.gov.ae/en/research-and-insights/-/media/files/invest-in-dubai/fdi/dubai-fdi-annual-results-and-rankings-2024-highlights-report.pdf – This document supports Dubai’s status as a major player in venture-capital-backed FDI, highlighting the increase in deal count for VC-backed investments. It also details Dubai’s broader investment landscape, including a significant rise in the number of startup funding deals.
- https://www.chinadaily.com.cn/a/202503/18/WS67d8d23fa310c240449db67c.html – This article corroborates Dubai’s leadership in Greenfield FDI projects for the fourth consecutive year and details the growth in total FDI capital, aligning with the emirate’s economic diversification goals.
- https://thefinanceworld.com/dubai-leads-global-greenfield-fdi-for-fourth-year – This article reinforces Dubai’s global ranking in Greenfield FDI projects and discusses the sectors contributing to its success, such as business services and software & IT, reflecting its strategic leadership in technology.
- https://www MAGNiTT.com – MAGNiTT’s reports provide insights into MENA’s venture capital trends, including the specific figures for VC funding in Dubai, highlighting its rise as a hub for venture capital investments in the region.
- https://www.difc.ae – The Dubai International Financial Centre’s website offers information about its role in fostering a robust fintech and VC ecosystem, supporting Dubai’s position as a major financial hub with attractive regulatory frameworks.
- https://www.globalfinancialcentres.net – This website publishes the Global Financial Centres Index (GFCI), which ranks Dubai among the top fintech cities globally, reflecting its growing influence in the global fintech landscape.
- https://www.brecorder.com/news/40357441/dubais-venture-capital-backed-fdi-soars-39pc-in-2024 – Please view link – unable to able to access data
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative mentions recent data from 2024, including specific figures and trends, indicating it is current. There are no clear indications of outdated information.
Quotes check
Score:
8
Notes:
A quote from Imran Saeed, CEO of Encore Pay, is included. Without further research, it’s unclear if this is the first use of this quote, but it seems specific to this publication.
Source reliability
Score:
8
Notes:
The narrative originates from Business Recorder, which is less globally recognized than major outlets like BBC or Financial Times but still presents specific data from reputable sources like MAGNiTT and the Department of Economy and Tourism’s FDI Monitor.
Plausability check
Score:
9
Notes:
Claims about Dubai’s growth in venture capital and FDI are plausible due to its established role as a financial hub and recent trends in the region.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative appears fresh and plausible, with reliable data sources cited. While quotes could not be verified as original, they add context. The source is somewhat less known globally but provides specific data, contributing to an overall high confidence in the assessment.
