Foreign direct investment into Gulf Cooperation Council countries rose 18% to about $99 billion in 2025, reaching a decade high. Outward investment also climbed 11% to $130 billion, as the region expanded its role as an economic bridge between Asian, African, European, and North American markets.
The Gulf Cooperation Council economies are experiencing a dual surge in capital movement, acting simultaneously as a major investment destination and a powerful source of outbound funds. Foreign direct investment inflows outpaced global growth significantly, reaching approximately $99 billion in 2025 compared with a 6% growth rate globally. At the same time, outward foreign direct investment from the region climbed 11% to $130 billion, exceeding inflows by nearly $31 billion.
United Arab Emirates and Saudi Arabia Capture the Bulk of Regional Inflows
Investment gains across the member states remain heavily concentrated in two major economies. The United Arab Emirates retained its position as the largest regional recipient, pulling in around $48 billion. Meanwhile, Saudi Arabia accounted for approximately three-quarters of the regional increase. Together, these two markets absorbed more than four-fifths of all foreign direct investment flowing into the GCC.
These disparities highlight differences in market size, international connectivity, and the varying pace at which domestic economies are enacting investment reforms and diversification strategies to attract foreign capital. Announced greenfield investments across the region jumped 66% to approximately $78 billion, while project counts increased by 12% against a 10% global decline.
Digital Infrastructure and Project Finance Shifting Toward Mega-Deals
Information and communication technology led the announced greenfield investment values, while automotive and construction sectors each experienced more than five-fold increases. Analysts note that rising automotive investments often represent retail, distribution, and downstream supply chain activities rather than heavy manufacturing integration.
International project finance underwent a structural shift in 2025, favoring fewer, larger, and far more digital commitments. Total international project finance value rose 65% to $114 billion, even as the actual number of deals declined by 16%. Telecommunications infrastructure financing more than tripled to nearly $24 billion, driven heavily by massive artificial intelligence commitments.
The $20 billion Stargate UAE artificial intelligence data-centre project accounted for much of the increase.
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Outbound Expansion and Emerging Vulnerabilities in 2026
Beyond their borders, Gulf investors have aggressively broadened their geographic reach. Announced greenfield investments outside the GCC more than tripled, climbing from $139 billion during 2016–2020 to $461 billion between 2021 and 2025, with Egypt and the United States serving as the primary destinations.
Despite these historic expansion milestones, immediate headwinds threaten the momentum. Preliminary indicators for the first half of 2026 point to a sharp, region-wide weakening of investment activity as the Strait of Hormuz crisis tests regional stability and prompts sovereign investors to re-evaluate priorities.