8 March, 2022
Dubai Ranks 3rd Globally in Greenfield FDI
According to data released by Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economy and Tourism (DET) in Dubai, the UAE attracted foreign direct investment capital inflows from 378 projects in the first nine months of 2021, an increase from the same period of 2020.
Dubai ranked third in attracting Greenfield foreign direct investment capital and projects, for the inflow of foreign direct investment into reinvestment projects, and for being among the most attractive FDI locations across the globe, according to a ranking by Financial Times’ fDi Markets.
Dubai received 11% of its FDI projects from reinvestment of foreign investments. Nearly 16,430 new jobs were created versus 12,090 jobs in the same period last year as FDI job creation increased 36% during the first nine months of 2021, compared to 2020.
It is to be noted that approximately 58% of inbound FDI goes into strategic sectors and 52% into Greenfield projects. Inbound foreign direct investment has grown by 2% in the last year to 64% in high- and medium-technology sectors.
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.”
FDI capital inflows to Dubai during the first nine months of 2021 were accounted for by 29% of FDI investing countries, followed by France with 19%, the United States with 14%, and Saudi Arabia with 6%, and India with 4%. Total of 72% of Dubai’s capital inflows came from these five countries. FDI projects were most numerous in the UK with 20%, followed by North America with 19%, China with 16%, Japan with 5%, France with 6%, and Germany with 5%.
Dubai Economic and Tourism Department Director General Helal Al Marri said the positive trend in foreign direct investments through the first nine months of 2021 illustrates the impact of Dubai’s future-focused policies on the creation of new investment opportunities and continuous improvement of the ease of doing business.
Dubai placed third among the top global FDI locations of the future in 2021 as reported in the FDI Intelligence’s ‘FDI Global Cities of the Future 2021/2022’ report. A second place ranking was also earned in the subcategory ‘Major Cities for FDI’, followed by the category ‘Economic Potential and Business-Friendly Environment’, while Dubai stood third in the category ‘Connectivity’, which demonstrates the level of investor confidence and readiness of Dubai in the global market.
Fahad Al Gergawi, CEO of Dubai FDI, said: “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.”
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