Foreign investors see Dubai as the best place to secure new assets in the Middle East, according to a new study by the Financial Times Foreign Direct Investment (FDI) Research Unit.
The emirate came out on top in the 2012/13 Cities of the Future list, just ahead of neighbouring Abu Dhabi and Ras al Khaimah.
Investors clearly feel the UAE's impressive infrastructure stands the country apart from other nations in the Gulf region.
Indeed, the research organisation stated that Dubai and Abu Dhabi have "immense potential" and they are "suitable, if not perfect business environments".
The report suggested the availability of skilled professionals and human resources made the UAE particularly appealing to foreign investors.
This is the third consecutive year in which Dubai has secured first place in the rankings and the emirate continues to account for 30 per cent of external investment in the UAE.
Another factor that makes the city such an attractive proposition is its reputation as an important import and export hub.
With fantastic air links, Dubai is well connected to other parts of the world and this makes it far easier for companies to trade in different markets.
Overall, the Cities of the Future report takes six factors into consideration when calculating the final standings, including cost efficiency, human resources, financial potential, business environment, infrastructure and quality of life.
This is by no means the first study to highlight Dubai's growing status as an investment hotspot.
Previous research has shown the city is the best place to live in the Middle East, thanks mainly to the UAE's stable government, the high wages being paid to workers and the uncomplicated tax system.
Of course, the emirate's property sector has also been going from strength to strength in recent years and this has not gone unnoticed among foreign investors.
Jones Lang LaSalle stated earlier this month that things have been going so well of late that comparisons could be drawn with the boom years of 2006/07.