In the first half of 2023, Dubai saw a 70% increase in the number of foreign direct investment (FDI) projects, as per data from Financial Times ‘fDi Markets.’ Greenfield FDI projects made up 65% of this growth.
Dubai welcomed 511 greenfield projects, elevating its position to sixth in FDI capital attraction, with an influx of $5.7B (AED 20.9B) in H1 2023, solidifying its status as the top global destination for greenfield FDI projects.
The city’s global share in attracting greenfield FDI projects reached 6.58% in the first half of 2023, marking a 3.83% increase compared to the same period a year earlier, according to Gulf Business.
This growth is in line with Dubai’s 10-year economic plan, the Dubai Economic Agenda (D33), which aims to double the size of the economy in the coming decade.
“Dubai’s ability to maintain its top ranking in attracting greenfield FDI projects reflects the city’s ability to create unparalleled growth opportunities and value for global investors,” said His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.
“With the clear growth roadmap set out by D33, we continue to work to create an investment environment that not only wins the trust of investors from all over the world but also encourages them to contribute to Dubai’s transformation.”
Dubai accelerates diversification
According to data from the Financial Times ‘fDi Markets,’ Dubai’s ranking in employment generation from FDI projects surged from ninth place in H1 2022 to fourth in H1 2023.
This Middle Eastern hub for business and tourism is now fourth globally in terms of job creation from foreign direct investment (FDI), with a remarkable 43.3% growth over the six-month period ending in June compared to the same period in the previous year, resulting in 24,236 new jobs.
Dubai’s commitment to attracting and retaining highly skilled professionals is reflected in the top six sectors contributing to job creation estimates through FDI in H1 2023, aligning with the Department of Economy and Tourism’s economic diversification initiatives.
Regarding the key sectors that brought FDI capital into Dubai, financial services accounted for 52%, business services for 12.8%, software and IT services for 7.5%, real estate for 6.9%, and F&B for 3%.
Furthermore, the Dubai FDI Monitor indicated that the top five sectors represented 82% of the total FDI capital inflow and 70% of the total FDI projects. Leading sectors by projects include business services (22.4%), software and IT (17.8%), F&B (12.2%), financial services (9%), and consumer products (8.3%).