The attraction of foreign direct investment worth $4.3 billion in the first nine months of 2021 places Dubai first in the MENA region and third globally. This further includes attraction of greenfield FDI capital ad projects, FDI into reinvestment projects, and being one of the top global FDI locations, according to Financial Times’ FDI Markets.
Dubai also ranked second globally in the ‘Major Cities for FDI’ subcategory as well as in ‘Economic Potential and Business-friendly Environment’, with the third position in the ‘Connectivity’ subcategory, highlighting the high level of investor confidence in Dubai and its future-readiness.
“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,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council.
“Initiatives such as full foreign ownership, an evolving visa administration, and the alignment of the workweek with global markets demonstrate Dubai and the UAE’s responsiveness to business needs. Under the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the emirate has implemented numerous initiatives to successfully combat the global pandemic, while focusing on its long-term goals of economic growth and happiness for all. These measures augment Dubai’s attraction for investors seeking opportunities across strategic and emerging sectors while cementing its position as a global economic hub,” he added.
FDI reinvestment projects accounted for 11 percent of the total FDI projects in the emirate. FDI job creation witnessed a huge growth of 36 percent during the first nine months of 2021 compared to the same period last year, as 16,430 new jobs were created compared to 12,090 jobs in the same period prior to last year.
The total number of FDI projects increased by 16 percent, from 326 in the first nine months of 2020 to 378 in the same period of 2021. As much as 58 percent of the inbound FDI is in strategic sectors and 52 percent is in greenfield projects. High and medium technology investments comprise 64 percent of inbound FDI capital, with an increase of 2 percent over the same period in the previous year.
FDI source countries according to ‘Dubai FDI Monitor’ puts the UK in the lead with 29 percent of FDI capital inflows into Dubai during the first nine months of 2021, followed by France with 19 percent, the US at 14 percent, Saudi Arabia at 6 percent, and India at 4 percent. These five countries together accounted for 72 percent of the total capital inflow into Dubai. In terms of the number of FDI projects, the UK ranked first with 20 percent, followed by the US with 19 percent, India with 11 percent, France with 6 percent, and Germany with 5 percent.
Helal Al Marri, Director-General of the Department of Economy and Tourism, said that Dubai’s strategic sectors are well-positioned to receive active global investor participation and provide economic growth and recovery. Furthermore, the positive FDI trends in the first nine months of 2021 indicate the efficiency of the city’s innovative policies in creating futuristic opportunities and constant improvements in the movement of the businesses to sustain a growth-oriented economic environment.
