Europe is “no longer an attractive destination for investment” amid mounting geopolitical tensions and economic pressures, according to Zayed Bin Rashid Bin Aweidha, CEO of Abu Dhabi Investment Group (ADIG), as wealthy individuals increasingly redirect capital to the United Arab Emirates.
“We’re seeing increasing interest from all over the world, particularly from Europe and China. There’s a clear trend of moving investments to the UAE,” Bin Aweidha told Arabian Business in an interview.
Europe losing investment appeal
The ADIG chief cited Europe’s conflict with Russia, rising military expenditures, and energy supply disruptions as key factors driving this shift.
“After the COVID-19 crisis—which was, frankly, very poorly managed in Europe compared to the UAE and especially Dubai—it’s no surprise that many investors shifted their trust to the UAE,” he added.
This assessment comes as industry data confirms a significant migration of wealth. A survey by global investor migration consultancy Arton Capital found that 37 per cent of German high-net-worth individuals are now more likely to consider emigration, with the UAE emerging as a key destination. Arabian Business previously reported that 11 per cent of German millionaires expressed interest in relocating to the Emirates.
UAE’s rising investment appeal
The UAE’s appeal extends beyond its borders, Bin Aweidha said. “Many investments originate in the UAE but extend far beyond its borders, mainly because of the global purchasing power and the relatively small size of the UAE’s domestic market,” he explained.
The ADIG chief predicted this trend would continue throughout 2025, pointing to not only challenges in Europe but also escalating US-China trade tensions.
“The UAE, being a neutral country with world-class infrastructure, is extremely attractive to investors looking for a safe and strategic base to operate globally,” he said.
To capitalise on potential Chinese investments, ADIG has proposed establishing a joint UAE-China investment fund that would act as a facilitator for Chinese companies facing cultural and communication barriers when investing abroad.
“The fund would be jointly managed by parties from China and the UAE, and it would evaluate each opportunity, assess what’s needed, and help address any concerns,” Bin Aweidha said, though he noted Chinese parties remain hesitant due to cultural differences in investment behaviour.
In Abu Dhabi itself, Bin Aweidha identified technology and industrial operations as the emirate’s investment priorities, characterising the local economy as “based on capital intensity rather than labour intensity” due to “the abundance of capital and the limited availability of labour.”
The wealth migration coincides with the UAE’s rising global mobility power. Henley & Partners reported that the Emirates is now the first Arab nation to enter the top 10 most powerful passports globally, with visa-free access to 185 destinations worldwide.
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