Dubai: The Dubai Economic Council (DEC) says that the emirate needs clearer regulations governing foreign direct investment (FDI).
In a report issued yesterday, the council also highlighted the need for easier access to finance and land, the free zone areas, improvements in corporate governance and reforms in the system of hiring workers.
In his keynote speech to a seminar in Dubai yesterday, Hani Al Hameli, Secretary-General of Dubai Economic Council, said that the impact of Dubai's sustained growth over a period of 35 years is remarkable, but that challenges remain.
"Dubai, like many other emerging market economies, has been exposed to the world economic crisis. therefore, this sustained economic growth requires developing better capacities to respond to future crises through more robust regulatory system and a more diversified economy," he said.
"Understanding the present standard of productivity, the industrial structure sectors should be the centrepiece of the future development agenda for Dubai," he said.
The DEC report said that despite there being no evidence of egregious violations of investors' rights, the lack of an explicit FDI law is cause for concern.
Dubai is ranked 33rd in the World Bank's Ease of Doing Business indicator, but while measures for starting a business, hiring workers and registering property get very high ranking, the UAE ranks poorly on protecting investors and on contract enforcement.
High priority
The report assured that speedy ratification and approval of the draft of the UAE Foreign Investment Law should be a high priority for the government.
The law was drafted in 2009, but is yet to be ratified and signed into law. The draft document contains details on the protection of foreign investors which is similar to the rights extended to the national investors.
Dr Abdul Razak Al Fares, Chief Economist and CEO of Research at the Dubai Economic Council, added that the current draft should be fast tracked towards approval into law.
"The proposed FDI law is likely to deliver results for the UAE and Dubai in terms of increased foreign investment," he said.
"The major but essential role of the Dubai Economic Council is to draw the economic strategies.
"Together with the leading businessmen and economic experts in the council, we play an advisory role by raising issues and recommendations to the higher authorities whether on the local or federal level to be considered to serve the benefit of the country economy strategy," Al Hameli said.
