The latest data from the 2022 Financial Times ‘FDI Markets’ report indicates that Dubai has maintained its position as the world’s leading destination for Greenfield foreign direct investment (FDI) projects, thereby strengthening its status as the top FDI hub globally.
The report reveals that Dubai has retained its top ranking for the second year running, with a significant increase of 89.5% in the number of announced FDI projects in 2022 compared to the previous year. Additionally, the total FDI capital has surged by 80.3% over the same period, consolidating Dubai’s position as one of the top three global cities, which is a major objective of the Dubai Economic Agenda D33 launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said: “Dubai’s ability to secure the No. 1 global ranking for Greenfield FDI projects for the second year in a row demonstrates its ability to sustain its compelling investment value proposition even at a time when the worldwide economy is facing headwinds. Driven by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the emirate offers the deep stability, sustainability, infrastructure and opportunity-rich environment needed to ensure the long-term trust of international investors, businesses and entrepreneurs. Over the years, Dubai has forged dynamic partnerships with global investors to accelerate innovation and create enduring economic value. Dubai leads the world in attracting FDI in a wide range of industries, especially future-oriented sectors, a fact that is a testament to the strategic vision articulated in the Dubai Economic Agenda D33, which aims to consolidate Dubai’s position as one of the world’s top urban economies.”
According to the 2022 Financial Times ‘FDI Markets’ report, Dubai has not only retained but also strengthened its position as the top destination for foreign direct investment (FDI) across various critical metrics. The report reveals that Dubai has secured the first spot in attracting FDI projects in crucial sectors such as tourism, business services, financial services, transport and warehousing, consumer products, software & IT services. In addition, Dubai has emerged as the world leader in attracting FDI projects in creative industries, research and development, and attracting FDI project headquarters, including global and regional headquarters of international companies, according to WAM.
Helal Saeed Almarri, Director General of Dubai’s Department of Economy and Tourism, said: “Dubai’s leading global FDI ranking underpins a comprehensive framework of initiatives that were launched to further strengthen the city’s business and investment environment, based on the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
“Our strategy to further consolidate the city’s position as one of the top three global cities, in line with the Dubai Economic Agenda, D33, is again strengthened by the achievement of attracting and stimulating FDI and reflects the confidence investors, multinational companies, start-ups, and global talent have in Dubai. The growth of the city’s share in global Greenfield FDI projects clearly indicates our strategy’s effectiveness and also highlights the city’s position as the capital of the global digital economy and a hub for innovation and technology, further ensuring that increasing FDI inflow remains a top priority and key goal of the D33 Agenda,” Helal Almarri added.
According to the 2022 Financial Times ‘FDI Markets’ report, Dubai has secured the seventh spot globally in attracting Greenfield FDI Capital and the fifth spot globally in FDI Jobs. Within the MENA region, Dubai ranks second in FDI Capital and first in FDI Jobs. There has been a 6% increase in Greenfield FDI and new forms of investment in 2022 compared to the previous year, indicating the maturity of Dubai’s domestic market and the diverse non-equity-based partnership opportunities like joint ventures, strategic alliances, sub-contracting, licensing, production-sharing franchising, and turnkey projects.
Dubai’s share in attracting global Greenfield FDI projects has increased to 4% in 2022, with a record 837 projects, which is the highest growth in global shares over the last seven years. Dubai attracted a total of 1,173 FDI projects in 2022, and the total estimated FDI capital that flowed into the emirate was AED 47B ($12.8B) compared to AED 26.07B in in 2021. The city created an estimated 38,447 jobs in 2022 compared to 24,932 jobs in 2021. The top five source countries for FDI projects accounted for 54% of the total in 2022, including the United States (20%), the United Kingdom (13%), India (12%), France (5%), and Switzerland (4%).
Dubai’s position as a leading destination for foreign direct investment (FDI) was reinforced by its performance in 2022, as shown by the Financial Times Ltd.’s ‘FDI Markets’ report. Dubai held the number one position in attracting Greenfield FDI projects for the second consecutive year, achieving YoY growth of 89.5 percent in total announced FDI projects and an 80.3 percent surge in total FDI capital. Dubai ranked first in attracting FDI projects across several sectors, including tourism, business services, financial services, transport and warehousing, consumer products, software and IT services, and the creative industries cluster.
In 2022, Dubai was seventh globally in attracting Greenfield FDI Capital and fifth globally in FDI Jobs, ranking second in FDI Capital and first in FDI Jobs in the Middle East and North Africa region. Dubai’s share in attracting global Greenfield FDI projects increased to 4 percent in 2022, and it attracted a total of 1,173 FDI projects. The top five source countries for FDI projects were the United States, the United Kingdom, India, France, and Switzerland.
Dubai’s transportation and warehousing sector accounted for 45 percent of FDI capital, with the top five sectors, including transportation & warehousing, hotels & tourism, renewable energy, software & IT services, and consumer products, accounting for 76 percent of the total estimated flows into Dubai and 68 percent of announced FDI projects.
Business services also remained prominent in 2022. The top five business functions accounted for 78 percent of total estimated flows into Dubai, while high and medium-tech FDI projects accounted for 63 percent of the projects recorded in the software and IT services sector, highlighting Dubai’s position as a global centre for specialised talent in the digital economy. The hotels & tourism and software & IT services sectors also drove growth in total estimated jobs created through FDI.
