As part of a new initiative to attract more foreign direct investment and promote itself as a global tech powerhouse, the UAE is providing incentives to entice hundreds of multinational digital enterprises to establish themselves in the nation.
Under the first phase of the NextGenFDI initiative, the UAE aims to attract 300 digital companies within the next six months to one year, Dr. Thani Al Zeyoudi, the UAE’s Minister of Foreign Trade, said at the launch of the programme on Wednesday.
Incentives include a faster business set-up process, better access to finance, easier visa procedures, and attractive commercial and residential leasing terms.
“We’re moving from a regional hub to a global hub, we’re competing with the big boys now, the competition in the last [few] years was with the region, now we’re moving to become a global hub and attract companies and FDI,” Mr. Al Zeyoudi said.
The UAE ranked first in the Arab world and 19th globally in attracting FDI inflows, according to the World Investment Report 2022 issued by the United Nations Conference on Trade and Development (Unctad) in June. The country attracted $20.7 billion worth of FDI last year, up 4 per cent compared with 2020.
The UAE was ranked 17th globally in terms of FDI outflows that totaled $22.5bn in 2021, a 19 per cent increase on the previous year.
“We want to be one of the top 10 countries globally to attract FDI so that overall KPI has been already set and all these initiatives are contributing to the achievement of this KPI,” the minister said.
The Ministry of Economy has signed partnerships with seven entities in Dubai and Abu Dhabi to help attract digital companies to establish offices or their headquarters in the UAE.
These are the Abu Dhabi Global Market, Dubai International Financial Centre, Dubai Multi Commodities Centre, Dubai Internet City, Dubai South, Emirates NBD, and digital banking platform Wio.
Under the partnership, the seven organisations have committed to expedite the incorporation process for digital companies and ease their access to banking and financing systems, Mr. Al Zeyoudi said.
“This will remove the complexity associated with establishing new businesses,” Juma Al Hameli, ADGM’s chief of staff, said at the event on Wednesday.
“The UAE and Abu Dhabi have already removed the cost and complexity of doing business and built strong ecosystems to attract companies.”
About 60 per cent of regional FinTech companies are already based in the DIFC, according to Arif Amiri, chief executive of DIFC Authority.
“However, with this initiative, we will be working together with like-minded institutions and individuals to further multiply the impact of FDI in Dubai and therefore … into the UAE,” he said.
