DUBAI, 6th October, 2018 (WAM) -- H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council has stated that increasing foreign direct investment (FDI) inflows reflect growing investor confidence in Dubai.
FDI into Dubai recorded significant growth in the first half of 2018, reaching USD4.84 bn (AED17.76 bn), a 26% up compared to the first half of last year, while the number of FDI projects surged to 248, an increase of 40% over the same period last year, according to the ‘Dubai FDI Monitor’ data issued by the Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development (DED) in Dubai.
"The rise in FDI capital and projects reinforces Dubai’s leading position as the preferred global location for global businesses and startups pursuing growth and expansion and clearly reflects investor confidence in Dubai’s economy," Sheikh Hamdan further said.
Dubai ranks third globally in the number of greenfield FDI projects, according to the Financial Times – fDi Markets, which account for 64% of total FDI projects in the first half of 2018. Dubai’s ability to maintain its position as one of the top FDI destinations in the world reflects the confidence of the global investor community in its business environment and its ability to offer diversified investment opportunities in key growth sectors, especially knowledge and technology, said Sheikh Hamdan.
The Dubai FDI Monitor shows that 43% of all FDI projects in the first half of 2018 are using high and medium technology, according to the classification universally adopted by the Organisation for Economic Co-operation and Development (OECD). Strategic projects accounted for 56% of total investment projects that Dubai attracted in the first half of 2018. The US, India, Thailand, Spain and the United Kingdom topped the list of source countries for FDI capital. The US also topped the list of investment projects, followed by France, UK, India and Switzerland.
Sheikh Hamdan highlighted Dubai's success in attracting investments from both developed and developing markets and providing a platform for businesses to serve markets across the Middle East, Africa and South Asia. This has enhanced the emirate’s status as a strategic gateway to regional and international markets and a pivotal hub in the global economy, he said.
Sheikh Hamdan commended Dubai FDI’s role in increasing global awareness of the advantages Dubai provides as a smart and sustainable city of the future, a gateway to regional growth markets and a global business hub, as well as a city that attracts Impact FDI, which contributes positively to sustainable economic growth and prosperity. His Highness added that Dubai FDI Monitor is one of the key achievements under the Dubai Plan 2021 launched under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, whose vision has constantly guided the government in its efforts to provide the investor community with the latest smart services, data and information as part of its aim of enhancing Dubai’s business competitiveness and sustainability and facilitating growth and expansion in the emirate.
Sami Al Qamzi, Director General, DED, said: "FDI flows in the first half of 2018 reaffirm the sustained growth of Dubai economy, and the diversity, competitiveness and attractiveness of the emirate." Al Qamzi pointed out that the results of the first half of this year represent a continuation of Dubai's achievements in 2017, which include being ranked 4th in greenfield FDI projects, 10th in FDI capital flows and 5th in FDI reinvestment projects globally. He stressed that Dubai's economy is looking forward with confidence to the prospects of boosting FDI flows, particularly with the strengthening of its economic stimulus, closer cooperation and partnership within the business community and the introduction of new laws that enhance Dubai's competitiveness as a preferred FDI destination and leading incubator for innovation.
FDI growth in advanced technology led to Dubai being ranked as the world leader in FDI technology transfer and 3rd after Singapore and Shanghai among the top 25 locations attracting FDI in Artificial Intelligence (AI) & Robotics, according to the Financial Times - FDI Benchmark report, which identifies the best FDI sites through benchmarking. The report emphasised that Dubai has the highest level of specialisation in FDI in technological components across all business sectors.
Fahad Al Gergawi, CEO of Dubai FDI said growth of foreign investments into Dubai and new projects and investments based on advanced technology underlines Dubai’s significant role in driving the Fourth Industrial Revolution and its ability to be prepared for future economic shifts. The emirate’s strategic approach of encouraging investment in industries based on innovation, AI and the Internet of Things have also proved attractive for investors, he said.
Al Gergawi added: "We are confident about the future prospects for enhancing FDI flows, especially following the issuance of new laws that enhance Dubai's competitiveness as a preferred global destination for investment and an incubator for innovation and creativity, including laws allowing 100 percent foreign ownership of companies, 10-year residency visas for investors, innovators, professionals and top-performing students."
Dubai has witnessed an increase in FDI capital inflows in the past year, despite the decline in global FDI flows. Total FDI flows reached AED 27.3 billion in 2017, a 7% increase compared to 2016.