The Gulf Cooperation Council experienced a slight increase in announced greenfield foreign direct investments in 2024, with the total number of projects rising by just under 1% to 1,830 from 1,813 in 2023, according to Emirates NBD Research. This modest growth underscores the region's ongoing efforts to attract foreign investment, particularly in key markets like Saudi Arabia and the United Arab Emirates .

Saudi Arabia emerged as the primary destination for greenfield FDI within the GCC, capturing 54% of the total project value in 2024. This dominance reflects the kingdom's ambitious initiatives to diversify its economy beyond oil dependence. Central to these efforts is the Vision 2030 plan, which aims to transform various sectors, including tourism, entertainment, and infrastructure.

A notable development in Saudi Arabia is the inauguration of Sindalah, a luxury island destination in the Red Sea. Officially opened on October 27, 2024, Sindalah is part of the larger Neom project, envisioned to position the kingdom as a premier tourism hub. The island spans approximately 840,000 square meters and features upscale resorts, a marina designed for superyachts, and various recreational facilities. Sindalah aims to attract 2,400 visitors daily by 2028, contributing to the creation of 3,500 jobs.

The UAE accounted for 36% of the GCC's greenfield FDI project value in 2024. While the number of projects in the UAE increased by 2% year-on-year, reaching 1,327, the total value of these projects declined by 33% to $14.5 billion. This decrease represents a normalization following a particularly strong performance in 2023. Dubai remained the largest recipient of greenfield FDI within the UAE, accounting for approximately 58% of the total project value, followed by Sharjah with nearly 12%.

The UAE's project investment landscape remains robust, with a potential pipeline valued at $659 billion. Future spending is primarily concentrated in Abu Dhabi and Dubai, which continue to lead the country's infrastructure and development growth.

The GCC's overall inflation rate stood at 1.7% at the end of October 2024, lower than the European Union's rate of 2.3%. This relatively low inflation environment provides a stable backdrop for investment and economic planning in the region.

Other GCC countries are also making strides to attract foreign investment. Bahrain, for instance, is positioning itself as a gateway for UK businesses to the Gulf, leveraging its cost-competitive advantages, green technologies, advanced manufacturing, and financial services sectors. The country emphasizes stability, infrastructure development, and tourism to lure global investors.

In the realm of infrastructure, regional projects like the Gulf Railway and Iraq's Development Road are set to enhance connectivity and economic integration. The Gulf Railway project aims to link GCC countries through a comprehensive rail network, with significant progress noted in the UAE and Oman. The Etihad Rail network in the UAE opened for cargo in February 2023, and a joint venture announced in April 2024 aims to connect Abu Dhabi with the port of Sohar in Oman.