Taking stock on where the UAE stands

• Among the lowest globally among major economies (see table above)

• ⁠⁠26th largest economy worldwide. 12th in Asia.

• ⁠FDI: 11th worldwide for FDI, 47% of all FDI into West Asia region flows to UAE. ($32 bn).

• ⁠2nd globally in attracting greenfield investments - companies setting up infrastructure from scratch (1,300 + projects in 2023)

• Weeks before the recent tariff turmoil, the UAE announced a 10 year, $1.4 tn investment into the US economy

• Current tariff on imports: standard 5% across GCC

• UAE is one of the most diversified trading economies in the world. US is 4th largest trading partner ($30bn, 9% of total UAE trade).

Banking Sector & Hedge Funds

• The UAE banking sector more than doubled in size (indexed from 100 to 225) over the decade.

• This outpaced both the global banking sector and the average of other emerging markets.

• The UAE's growth is driven by a mix of strong fiscal policy, digital transformation, and being a magnet for regional and international finance.

• Both Abu Dhabi and Dubai have experienced significant growth in attracting hedge funds in recent years, solidifying their positions as emerging financial hubs in the Middle East.

• DIFC: 75 hedge funds, with 48 of these managing assets exceeding $1 billion each. 50% growth y/y (2024)

• Abu Dhabhi Global Market (ADGM) has completed integration of Al Reem Island under its jurisdiction solidifying its position as one of the world's largest financial districts.

• AGDM company registrations are experiencing 30 - 40% annual growth.

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