Dubai continued to maintain its leadership position among the world's preferred destinations for foreign direct investment (FDI), attracting AED15.9 billion (US$4.3 billion) of FDI capital inflow from 378 projects in the first nine months of 2021, a significant increase from the same period of 2020, according to data from the ‘Dubai FDI Monitor’ released by Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economy and Tourism (DET) in Dubai.
The positive growth places Dubai third globally in key metrics including attracting greenfield foreign direct investment capital and projects, for FDI into reinvestment projects and for being among the top global FDI locations of the future, according to the ranking by Financial Times’ fDi Markets, which captures and compares FDI data across the world.
FDI reinvestment projects accounted for 11% of the total FDI projects in the emirate. FDI job creation witnessed a huge growth of 36% 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%, from 326 in the first nine months of 2020 to 378 in the same period of 2021. As much as 58% of the inbound FDI is in strategic sectors and 52% is in greenfield projects. High and medium technology investments comprise 64% of inbound FDI capital, with an increase of 2% over the same period in the previous year.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said:
"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. Initiatives such as full foreign ownership, an evolving visa administration, and the alignment of the work week 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."
His Highness Sheikh Hamdan conveyed his satisfaction on Dubai’s new FDI milestones that underscore Dubai’s position as one of the world’s safest and most stable investment destinations. Dubai FDI Monitor data show that investors from a diverse range of countries have opened businesses in Dubai.
FDI source countries according to ‘Dubai FDI Monitor’ puts the United Kingdom on the lead with 29% of FDI capital inflows into Dubai during the first nine months of 2021, followed by France with 19%, the United States at 14%, Saudi Arabia at 6%, and India at 4%. These five countries together accounted for 72% of the total capital inflow into Dubai. In terms of the number of FDI projects, the United Kingdom ranked first with 20%, followed by the United States with 19%, India with 11%, France with 6%, and Germany with 5%.
Helal Al Marri, Director General of the Department of Economy and Tourism in Dubai, said the positive FDI trends in the first nine months of 2021 showcase the efficacy of Dubai’s future-forward policies in creating new investment opportunities and continuous improvement in the ease of doing business.
"Dubai’s strategic sectors are well positioned to receive global investor participation and provide the foundation of economic recovery and growth. Under the leadership of H.H. Sheikh Mohammed bin Rashid Al Maktoum and the directives of H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai continues to be one of the leaders in global economic recovery in the post-pandemic phase. We are committed to pursuing policies that effectively sustain a growth-oriented business environment," Al Marri said.
Al Marri praised the contributions of all Dubai agencies, including the public and private sectors, in welcoming the world to Expo 2020 Dubai.
Notably, the ‘FDI Global Cities of the Future 2021/2022’ report published by fDi Intelligence, a division of the Financial Times, ranked Dubai third among the top global FDI locations of the future in 2021. Dubai also ranked second globally in the ‘Major Cities for FDI’ subcategory as well as in ‘Economic Potential and Business-friendly Environment’, with third position in the ‘Connectivity’ subcategory, highlighting the high level of investor confidence in Dubai and its future-readiness.
Fahad Al Gergawi, CEO of Dubai FDI, said the encouraging FDI performance of Dubai is a result of the emirate’s resilience and crisis-preparedness. He credited this to the forward-thinking policies and innovative strategies adopted proactively by Dubai’s leadership, with human happiness at the centre of the emirate’s growth initiatives.
"We have been successful in consistently conveying the Dubai Advantage – as one of the world’s best cities in which to live, work, and play – to global investors. Many elements have come together as the result of collaboration between government entities, free zones, and private sector partners to enhance the attractiveness and stability of the investment environment in Dubai. Job creation and strategic growth remain at the centre of FDI investments, underscoring a global approach that ties in with a local advantage," Al Gergawi said.
"At Dubai FDI, we have continued to support existing and potential investors in their journey throughout the pandemic period. The Expo 2020 Dubai has proven to be an excellent platform for attracting global business, ensuring that economic growth gathers momentum," Al Gergawi added.
News Source: Emirates News Agency