DUBAI: The second edition of the Sharjah Foreign Direct Investment (FDI) Forum, which opens on Wednesday, will focus on investment prospects in the UAE, as the country diversifies its economy away from oil.
Organised by the Sharjah Investment and Development Authority (Shurooq) in collaboration with the Financial Times and fDi Magazine, the two-day event will attract more than 300 financial experts, top entrepreneurs and businessmen from around the world.
The forum will highlight FDI prospects in the UAE, particularly Sharjah, and discuss global and regional FDI trends and developments. It will touch on investment opportunities offered by Sharjah in sectors including tourism, leisure, environmental development, health care, transportation and logistics.
It will also discuss ways to overcome challenges that obstruct the movement of capital, capitalising on investment opportunities and achieving growth in different markets.
The conference will start with opening remarks from Shaikh Dr. Sultan Bin Mohammad Al Qasimi, Member of the Supreme Council of the U.A.E. and Ruler of Sharjah.
The event will feature over 30 industry-led discussion panels, interviews and addresses. The attendees include Shaikha Budour bint Sultan Al Qasimi, Chairperson of Shurooq; Abdullah Al Saleh, Under Secretary for Foreign Trade and Industry Affairs at the UAE Ministry of Economy; and Marwan Bin Jasem Al Sarkal, Chief Executive of Shurooq.
“The Sharjah FDI Forum … focuses on the growing importance of FDI in ensuring economic security of countries through its contribution to the diversification of income sources and streams, fortifying local economies against market fluctuations, and creating job opportunities by launching new projects,” Al Sarkal said in a statement.
In April this year, Sultan Bin Saeed Al Mansouri, the UAE Minister of Economy, said that the contribution of oil to the UAE’s GDP (gross domestic product) will fall to 20 per cent by 2021, and is likely to fall to zero per cent in the next 50 years. The UAE aims to increase its contribution of FDI to 5 per cent of the country’s GDP over the next five years.
Last year, the UAE attracted nearly $11 billion (about Dh40 billion) worth of FDI, which accounted for 46 per cent of the total attracted by all GCC [Gulf Cooperation Council] countries combined, Sheikha Bodour stated. “Today, the UAE enjoys a prominent place on the map of international investment and has come to top other Arab countries in attracting foreign direct investment within a relatively short period of time.”
Global FDI flows increased 36 per cent in 2015 to an estimated $1.7 trillion — the highest since 2007 and the growth was largely driven by growth in FDI flows in European Union and the United States, according to the United Nations body.
On the first day of the forum, experts will discuss investment opportunities in the UAE beyond oil; strengthening trade links between the UAE and Europe; harnessing the investment potential in the UAE’s transportation and logistics sector to meet with expanding trade demand; and financing for small and medium sized enterprises (SMEs), among other topics.
Panel discussions on the second day will be on growing trade links between India and the UAE; prospects for FDI in the UAE and the Middle East in the coming year; and investing and growing businesses in the UAE.
The second day will also feature an interview on positioning the Middle East as a global economic hub.
Sharjah hosts more than 16 per cent of the total SMEs in the country, which exceed 45,000 in number, Sheikha Bodour stated.
The emirate has also launched sectors that were new to the region, such as environmental development, as well as specialised sectors within traditional ones, including ecotourism, she added. “Sharjah’s economy is based on diversity and balance. No sector in the emirate contributes to more than 20 per cent of the GDP, which ensures greater economic stability and dramatically lowers risk factors.”
BOX- Key speakers at the Sharjah FDI Forum 2016
. Abdullah Al Saleh, Under Secretary for Foreign Trade and Industry Affairs, Ministry of Economy, United Arab Emirates
. Parag Khanna, Director, Hybrid Reality Pte Ltd
. Hussain Mohammad Al Mahmoudi, Chief Executive Officer, American University of Sharjah Enterprises
. Khalid Omar Al Midfa, Director General, Sharjah Media Corporation
. David Burns, Chairman and Chief Executive Officer The British Business Group
. Saud Salem Al Mazrouei, Director, Hamriyah Free Zone and Sharjah Airport International Free Zone
. Flemming Dalgaard, Chief Executive Officer, Gulftainer Group
. Sudesh Aggarwal, Chairman, India Trade & Exhibition Centre Middle East
. Jeffrey Colyer, Lieutenant Governor of Kansas
. Dalya Al Muthanna, President and CEO, GE Gulf
. Stuart Anderson, Managing Director and Regional Head Middle East, Standard & Poor’s Global (S&P)
BOX- Key figures related to the UAE economy
•Accumulated foreign investments in the UAE rose to $126 billion (Dh462.4 billion) by the end of 2015, according to the World Investment Report 2015 issued by the United Nations Conference on Trade and Development (UNCTAD)
•Foreign direct investment (FDI) inflows to the UAE touched $11 billion in 2015
•The UAE’s industrial sector contributes 14 per cent to its GDP [gross domestic product]
•Sharjah’s contribution alone to the UAE’s industrial sector stands between 38 per cent and 40 per cent
•The total industrial investment in the UAE grew to Dh127.6 billion in 2015
