(MENAFN– Khaleej Times)
Published: Sun 30 Jan 2022, 4:54 PM
Last updated: Sun 30 Jan 2022, 10:14 PM
Dubai continued to maintain its leadership position among the world’s preferred destinations for foreign direct investment (FDI), attracting Dh15.9 billion ($4.3 billion) of FDI capital inflow from 378 projects in the first nine months of 2021, latest report shows.
According to data from the ‘Dubai FDI Monitor’ released by Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economy and Tourism (DET) in Dubai, the positive growth places Dubai third globally in key metrics including attracting greenfield foreign direct investment capital and projects, for FDI into reinvestment projects and for being among the top global FDI locations of the future.
Referring to the ranking by Financial Times’ fDi Markets, which captures and compares FDI data across the world, the report said FDI reinvestment projects accounted for 11 per cent of the total FDI projects in the emirate.
“FDI job creation witnessed a huge growth of 36 per cent during the first nine months of 2021 compared to the same period last year, as 16,430 new jobs were created compared to 12,090 jobs in the same period prior to last year,” the report said.
16% jump in FDI projects
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said Dubai has continued to introduce and implement initiatives that improve business confidence.
“Global investors have placed their faith in Dubai’s business ecosystem, making it among the most attractive FDI locations in the world. Initiatives such as full foreign ownership, an evolving visa administration, and the alignment of the work week with global markets demonstrate Dubai and the UAE’s responsiveness to business needs,” Sheikh Hamdan said.
The total number of FDI projects increased by 16 per cent, from 326 in the first nine months of 2020 to 378 in the same period of 2021. As much as 58 per cent of the inbound FDI is in strategic sectors and 52 per cent is in greenfield projects. High and medium technology investments comprise 64 per cent of inbound FDI capital, with an increase of two per cent over the same period in the previous year.
“Under the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the emirate has implemented numerous initiatives to successfully combat the global pandemic, while focusing on its long-term goals of economic growth and happiness for all. These measures augment Dubai’s attraction for investors seeking opportunities across strategic and emerging sectors while cementing its position as a global economic hub,” the Crown Prince said.
Sheikh Hamdan conveyed his satisfaction on Dubai’s new FDI milestones that underscore Dubai’s position as one of the world’s safest and most stable investment destinations. Dubai FDI Monitor data show that investors from a diverse range of countries have opened businesses in Dubai.
Saad Maniar, a senior partner at Crowe, said Dubai is undoubtedly the leading city to attract FDI as the way it is hosting mega events like Expo 2020 in the pandemic situation, tells a lot about the emirate’s resilience.
“Backed by its world class infrastructure and with its visionary leadership, Dubai will continue to be in leading position,” Maniar told Khaleej Times on Sunday.
“Presently the trust and level of confidence in Dubai economy is high, if Dubai is able to achieve its plan, which I’m confident, then Dubai will see significant growth in long run and will be the destination of choice for many global brands and high net worth individuals,” he added.
UK leads capital inflows to Dubai
FDI source countries, according to ‘Dubai FDI Monitor’, puts the United Kingdom on the lead with 29 per cent of FDI capital inflows into Dubai during the first nine months of 2021, followed by France with 19 per cent, the United States at 14 per cent, Saudi Arabia at six per cent, and India at four per cent. These five countries together accounted for 72 per cent of the total capital inflow into Dubai. In terms of the number of FDI projects, the United Kingdom ranked first with 20 per cent, followed by the United States with 19 per cent, India with 11 per cent, France with six per cent, and Germany with five per cent.
Helal Al Marri, Director General of the Department of Economy and Tourism in Dubai, said the positive FDI trends in the first nine months of 2021 showcase the efficacy of Dubai’s future-forward policies in creating new investment opportunities and continuous improvement in the ease of doing business.
“Dubai’s strategic sectors are well positioned to receive global investor participation and provide the foundation of economic recovery and growth. Under the leadership of Sheikh Mohammed bin Rashid Al Maktoum and the directives of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai continues to be one of the leaders in global economic recovery in the post-pandemic phase. We are committed to pursuing policies that effectively sustain a growth-oriented business environment,” Al Marri said.
Shailesh Dash, a Dubai-based entrepreneur and financier, said Dubai has continuously worked on being one of the most attractive destinations in the world in terms of investment and living in the city.
“It’s clear that Dubai has been choosen as one of the most attractive place for technology investments in the region and world. Increasingly investors/entepreneurs have been looking at investing and creating their manufacturing sites to be based out of Dubai. Dubai’s investment laws, tax benefits and infrastructure have all helped in making it the attractive destination that it is today for investment,” Dash told Khaleej Times on Sunday.
Emirate’s resilience proved
Al Marri praised the contributions of all Dubai agencies, including the public and private sectors, in welcoming the world to Expo 2020 Dubai.
Notably, the ‘FDI Global Cities of the Future 2021-22’ report published by fDi Intelligence, a division of the Financial Times, ranked Dubai third among the top global FDI locations of the future in 2021. Dubai also ranked second globally in the ‘Major Cities for FDI’ subcategory as well as in ‘Economic Potential and Business-friendly Environment’, with third position in the ‘Connectivity’ subcategory, highlighting the high level of investor confidence in Dubai and its future-readiness.
Fahad Al Gergawi, CEO of Dubai FDI, said the encouraging FDI performance of Dubai is a result of the emirate’s resilience and crisis-preparedness. He credited this to the forward-thinking policies and innovative strategies adopted proactively by Dubai’s leadership, with human happiness at the centre of the emirate’s growth initiatives.
“We have been successful in consistently conveying the Dubai Advantage — as one of the world’s best cities in which to live, work, and play – to global investors. Many elements have come together as the result of collaboration between government entities, free zones, and private sector partners to enhance the attractiveness and stability of the investment environment in Dubai. Job creation and strategic growth remain at the centre of FDI investments, underscoring a global approach that ties in with a local advantage,” Al Gergawi said.
“At Dubai FDI, we have continued to support existing and potential investors in their journey throughout the pandemic period. The Expo 2020 Dubai has proven to be an excellent platform for attracting global business, ensuring that economic growth gathers momentum,” Al Gergawi added.
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