The emirate drew 492 FDI projects During the first half of 2022.
80% is the increase compared to the same period last year.
Making Dubai the world’s best city for living, working, and investing is one of His Highness Sheik Mohammed bin Rashid Al Maktoum’s directives.
During the first half of 2022, Dubai maintained its position as the world’s leading foreign direct investment (FDI) hub, with an impressive 492 FDI projects, marking an increase of 80. % compared to the same period in 2021. Dubai’s Department of Economy and Tourism (DET) published this data. Dubai was also ranked first globally in attracting greenfield FDI projects during the same period, per the Financial Times Ltd’s ‘fDi Markets,’ the most comprehensive online database on cross-border greenfield investments. Greenfield projects accounted for 56% of Dubai’s FDI projects during this period, according to Dubai Investment Development Agency (Dubai FDI), an entity of DET, utilizing data from its Dubai FDI Monitor. Dubai witnessed FDI inflows of Dh13. 2 billion ($3. 3 billion) in H1 2022, reflecting growth of 14. % compared to last year’s period, which is a remarkable achievement.
During the same time frame, new job opportunities amounting to 15,164 were created through FDI investments and projects, depicting a 33. % increase year-on-year. Dubai has maintained its leading position regarding FDI-related employment across MENA countries. The city has emphasized its commitment to retaining investments and investor trust, having secured the fourth position worldwide in reinvestment FDI projects, the tenth globally in reinvestment FDI capital inflows, and the eighth in terms of jobs generated by reinvestment projects.
Sheik Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai expressed his pleasure with the recent global and regional FDI achievements, which he believes are in line with the directives of His Highness Sheik Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the world’s best city for living, working, and investing.
Dubai is a safe and stable business environment that has piqued the interest of investors amidst the challenges faced by the world in recent years.
The emirate has implemented policies that cater to high-tech industries while maintaining a robust infrastructure that benefits traditional businesses. The growing influx of foreign direct investment (FDI) in alternative investments and high-tech projects highlights Dubai’s position as a global digital economy capital and a hub for innovation and advanced technology.
Sheik Hamdan expressed that Sheik Mohammed’s vision and directives have established a solid foundation for Dubai’s partnership with foreign investors based on mutual trust and respect. Dubai’s world-class infrastructure, flexible regulatory framework, and dynamic business ecosystem that encourages innovation and attracts global talent reinforce its position as the world’s leading investment destination.
Dubai is committed to enhancing its business environment to explore new growth avenues with investors to achieve remarkable success in the future. The emirate’s strategic objectives for development include:
- Diversifying the economy.
- Attracting more investment in future-focused sectors.
- Enhancing growth opportunities in the digital economy.
The Director-General of DET, Helal Saeed Al Marri, stated that the year started at a fast pace, driven by the success of Expo 2020, an increase in global tourism and MICE, progressive visa policies and legislation, and Dubai’s ability to withstand international economic and supply chain pressures. These factors have increased global investor confidence in Dubai, making it a preferred ecosystem for growth, investment diversification, geographic consolidation, talent attraction, and R&D development. Al-Marri affirmed that the achievements in attracting investment demonstrate their commitment to advancing Dubai’s leading position, enhancing its economic and tourism competitiveness, expanding international trade horizons, and keeping up with future developments to position Dubai as the best city in the world to live, work, and invest.
Types of foreign investments
Dubai has become a leading global city regarding FDI inflows, with diverse types of FDI projects and capital flowing in. In H1 2022, greenfield projects comprised 56% of FDI projects, while new investment forms accounted for 29%, and VC-backed FDI projects made up 6%. Mergers and acquisitions represented 5%, reinvestment 3%, and joint ventures 1%. Medium and high-tech projects accounted for 62% of total FDI projects, demonstrating Dubai’s success in attracting global talent and capital as it transitions to a digital economy. Dubai’s top five sectors of FDI capital inflows were Specialty Trade Contractors, Non-Residential Building Construction, Accommodation and Food Services, Data Processing, Hosting, Related Services, and Electric Power Generation.
Regarding the number of FDI projects, the Wholesale and Retail Trade sector and the Accommodation and Food Services sector topped the list with 11% each, followed by Computer Systems Design and Related Services, Software Publishing, and Administrative and Support Services, each with 7%. The ‘Dubai FDI Monitor’ has been recognized as the best international practice in tracking and monitoring investments by the United Nations Economic and Social Council for Asia and the Pacific (UNESCAP).
Source : khaleejtimes