Artificial intelligence (AI) has been identified as the top emerging technology fueling global foreign direct investment (FDI) growth, according to data presented at the World Free Zones Organization (FZO) 10th Annual World Congress in Dubai. AI is significantly shaping FDI, with nearly 1,000 greenfield projects in the past year alone, creating major investment opportunities, especially for free zones.
Henry Loewendahl, founder and CEO of Wavteq Group Limited, highlighted the massive $30 billion per month investment in AI in the U.S., fueling global FDI. This surge is supported by other high-growth sectors such as cloud computing, fintech, electric vehicles, and cybersecurity.
UAE and Saudi Arabia Leading in the Middle East
In the Middle East, the UAE and Saudi Arabia have emerged as leaders, contributing 1.6% and 1.3% of FDI, respectively. Dubai stands out as the top city globally for FDI projects over the past three years, attracting nearly 60% of the region’s FDI into free zones. Loewendahl emphasized Dubai’s role in drawing tech-focused investments, a trend echoed across the Gulf region.
Despite the challenges posed by the pandemic, global FDI inflows have remained resilient at $1 trillion, with reinvestment from existing companies accounting for 50% of this figure. The Middle East continues to shine, focusing on service and tech sectors, while Asia-Pacific attracts larger, labor-intensive manufacturing projects.
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