Department of Municipalities and Transport reports 363 per cent growth in foreign direct investment in real estate during H1 2023

The Department of Municipalities and Transport (DMT) has reported AED 834.6 million of foreign direct investment (FDI) by individuals in Abu Dhabi's real estate sector during the first half of 2023, representing a record increase of 363 per cent compared to the same period in 2022.

According to data released by the DMT, the following five regions topped the list in terms of the highest shares of foreign direct investment by individuals: Saadiyat Island with 34 per cent, Yas Island with 28 percent, Al Jurf with 12 per cent, Al Reem Island with 11 per cent and Al Shamkha area with 8 per cent.

His Excellency Dr Adeeb Al-Afifi, Executive Director of the Real Estate Sector for the Department of Municipalities and Transport, said: "We are thrilled to announce the remarkable surge in foreign direct real estate investments in Abu Dhabi. The astounding 363 per cent growth witnessed during the first half of this year is testament to the emirate's exceptional appeal to foreign investors. This includes its strategic location, world-class infrastructure, and supportive economic and legislative environment, all of which have contributed to enhancing the emirate’s position as a preferred destination for individuals of all nationalities to invest, live, and work.

"Abu Dhabi's investment climate, bolstered by encouraging incentives and robust legislative and regulatory frameworks, has created a nurturing and stimulating environment for foreign investors pursuing promising prospects in the real estate market. Moreover, the emirate's unwavering commitment to adopting sustainable development policies, innovation, economic diversification and environmental sustainability has significantly enhanced its ability to attract foreign direct real estate investments."

His Excellency Dr Al-Afifi said that the increased growth rates in the volume of foreign direct real estate investments reflected the confidence of international investors in the emirate's economy and its ability to provide long-term returns.

His Excellency Dr Al-Afifi said the emirate would continue to build a comprehensive and enticing real estate ecosystem for foreign investors, characterised by streamlined processes and seamless government service experiences that facilitate the foreign direct investments in the real estate sector in Abu Dhabi.