The UAE is drawing in more foreign direct investment (FDI), propelled by various factors, including a network of Comprehensive Economic Partnership Agreements (CEPAs) with global partners, as stated by Massimo Falcioni, Chief Competitiveness Officer (CCO) at Abu Dhabi Investment Office (ADIO).
Falcioni, speaking at the ongoing AIM Congress at the Abu Dhabi National Exhibition Centre (ADNEC), highlighted the UAE’s advantageous location, focus on digitalisation, and future-oriented industries, which complement this positive trend.
He stressed the significance of CEPAs in attracting businesses to the UAE, describing them as pathways for goods and services to countries with agreements with the UAE.
These agreements function as a “passport” for foreign businesses, granting them access to broader markets, simplifying trade barriers, customs procedures, and supply chains, making the UAE an appealing launchpad for global expansion.
Initiated in 2021, UAE’s CEPA aims for more open, sustainable, and mutually beneficial trading relations. So far, agreements have been signed with eight countries: India, Israel, Indonesia, Turkey, Cambodia, Georgia, Costa Rica, and Colombia. Negotiations with other countries are ongoing.
UAE Tops FDI Charts in MENA, West Asia Regions: UNCTAD Report
Falcioni referenced the World Investment Report 2023 by UNCTAD, indicating FDI inflows to the UAE in 2022 at $22.737B (AED 83.5B), ranking 16th globally. UAE led in the West Asia region, receiving 47.1% of total FDI inflows, and in the MENA region, with 32.4%, amounting to $48.3B and $70.2B, respectively.
He highlighted UAE’s geographical advantage, situated at the crossroads of Asia, Africa, and Europe, with developed aviation and port infrastructure, notably Khalifa Port in Abu Dhabi connecting to over 64 international destinations.
A key focus for UAE is attracting FDI into greenfield projects, entirely new ventures, with incentives provided by Abu Dhabi Investment Office, including land access, talent pool connections, and financing.
The UAE’s digital economy is another growth driver, with initiatives like Abu Dhabi Global Market (ADGM) actively attracting fintech companies and facilitating finance access.
Falcioni noted the government’s efforts to foster innovation across sectors, including e-commerce, manufacturing, and the rapidly growing e-sports industry.
Looking ahead, UAE prioritises investments in Industry 4.0 and 5.0, focusing on automation, robotics, and enhanced productivity, with collaboration between Ministry of Industry and Advanced Technology (MoIAT) and Abu Dhabi’s Department of Economic Development.
