Dubai’s venture-capital-backed FDI soars 39pc in 2024

Dubai’s position on the global investment map has never been more pronounced. In 2024, the emirate experienced unprecedented momentum in venture-capital-backed foreign direct investment (FDI), emerging as a central player in the Middle East and North Africa (MENA) region’s evolving tech and startup ecosystem.

According to Dubai’s Department of Economy and Tourism’s (DET) FDI Monitor, venture-capital-backed FDI surged by 39% in 2024, a strong indicator of international investor confidence and Dubai’s maturing innovation infrastructure.

A thriving startup scene

The number of Venture Capital (VC) funding deals in Dubai-based startups rose from 79 in 2023 to 110 in 2024, reflecting a broader trend of diversification and risk appetite among global investors. This shift was fueled by a combination of factors: a business-friendly regulatory environment, supportive government policies, and a rapidly growing digital economy.

Dubai retains top ranking for greenfield FDI projects, attracts $14.24bn in 2024

According to the MENA Venture Investment Report 2024 by MAGNiTT, $222 million in VC FDI capital flowed into startups based in Dubai — underscoring the city’s growing appeal among global venture firms.

For perspective, in 2024, Pakistani startups raised a total of $42.5 million in venture capital funding, a significant decline from the $74 million raised in 2023, according to a report published by Pakistani think tank invest2innovate.

Why Dubai? A founder’s perspective

Imran Saeed, CEO of UAE-based fintech platform Encore Pay, attributes this sharp upward trajectory to two crucial advantages: ease of doing business and capital mobility.

“Jurisdictional comfort is the first—Dubai is a good hub for those conducting business in the Middle East or Africa,” Saeed said in a conversation with Business Recorder. “Dubai facilitates the process, where one can easily register companies in jurisdictions such as DIFC [Dubai International Financial Centre].”

Encore Pay, which has received funding from both the United States and Africa, highlights how startups and investors increasingly view Dubai as a gateway jurisdiction—bridging capital markets and regulatory ecosystems across continents. Saeed emphasised that unhindered capital inflow and outflow, something harder to achieve in parts of Asia and Africa, is central to Dubai’s competitive advantage.

“The only other country comparable to the UAE is Singapore,” Saeed noted, reinforcing Dubai’s emergence as a global counterpart to long-established financial hubs.

Tech-Driven investments on the rise

Beyond the numbers, the type of investment flowing into Dubai tells a compelling story. In 2024, 54% of all announced FDI projects incorporated High to Medium technology components, underscoring the emirate’s shift from a technology adopter to a technology leader.

“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,” added Saeed.

The role of the DIFC has been pivotal. Over the past two decades, DIFC has helped nurture a robust fintech and VC ecosystem, recently contributing to Dubai being ranked among the top five global fintech cities in the latest Global Financial Centres Index (GFCI).

Investor confidence and global positioning

Dubai’s efforts to create a knowledge-based economy are bearing fruit. The broader investment landscape shows:

• Reinvestments nearly doubled (+98%)

• Mergers & acquisitions increased by 8%

• New forms of investments (NFIs) grew by 23%

Moreover, the emirate maintained its global leadership in greenfield FDI projects for the fourth consecutive year, according to fDi Markets (Financial Times Ltd).

Looking ahead

Dubai’s ability to attract high-value, technology-focused capital reflects a long-term strategy that aligns economic diversification with digital innovation. As founders, venture capitalists, and tech leaders increasingly look eastward for stable, tax-efficient, and innovation-driven ecosystems, Dubai stands out as a modern-day hub for capital formation and startup success.

For the global VC community, Dubai is no longer just a gateway to the Middle East — it’s becoming a global destination in its own right.

Copyright Business Recorder, 2025