Vijay Valecha, July 10, 2025, Khaleej Times
The European Union’s recent decision to remove the UAE from its list of high-risk third countries for money laundering and terrorist financing is set to boost the UAE’s global profile and attract increased foreign direct investment (FDI) into key sectors such as real estate, fintech, green technology, and logistics.
An IMF study shows that countries delisted from high-risk financial jurisdiction lists often experience a surge in capital inflows — up to 7.6 per cent of GDP — and a 3 per cent rise in FDI. Reflecting this trend, the World Investment Report highlighted a 49 per cent jump in FDI to the UAE last year, reaching $45.6 billion.
Sectors set to benefit
Vijay Valecha, chief investment officer at Century Financial, outlined several benefits: “Capital flows between Wall Street banks and UAE regional banks will become more seamless, attracting further foreign direct investment and business opportunities. Compliance costs will decrease, and investor confidence will strengthen. Importantly, this will unlock the full potential of the EU-UAE partnership, which previously faced increased scrutiny.”
He added that European institutions will feel more confident working with UAE clients without the additional AML checks and expenses beyond standard due diligence.
“This will reduce delays, paperwork, and costs, benefiting banks, fintech firms, startups, and trade finance entities by enabling faster cross-border flows and client onboarding.”
Valecha expects increased European investment in real estate—especially in luxury, commercial, and branded residential projects—along with growth in retail and e-commerce fueled by smoother cross-border payments and rising investor interest.
Source:
Khaleej Times