Dubai:

The Foreign Direct Investments (FDI) into Dubai grew 26 per cent to approximately $8 billion in 2012, compared to $6.3 billion in 2011, according to the Foreign Direct Investment Office at the Dubai Department of Economic Development.

These investments represent 1.6 per cent of the global FDI, and were directed at 260 projects across different business sectors including services, tourism, hospitality, financial, retail, Business and IT Services, Food and Tobacco and chemicals. Most of the FDI came from the US, UK and India.

The number of projects decreased 6 per cent from 2011 (260 from 277) while the share of global FDI projects increased by 14 per cent from 1.4 per cent in 2011 to 1.6 per cent in 2012.

While projects attracted in 2011 were larger, in 2012 fewer projects are generating more FDI inflows.

Fahad Al Gergawi, CEO of Foreign Direct Investment Office in Dubai, said that theses FDI figures indicate a healthier and steadier performance growth in 2012 as well as shows Dubai an outperforming global FDI destination trends.

“2012 was a year of solid growth and development for Dubai and the UAE with the main highlights of the year being,” he said.

The largest number of projects was announced in November 2012, with 28 projects that month equating to 10.8 per cent of total FDI attracted for the year and a 2.2 per cent share of global FDI. Average total investment peaked in January 2012, which is when the largest projects were recorded, Al Gergawi said.

Pointing to the main factors that resulted in increasing the FDI in Dubai, he added that the UAE’s steady GDP growth, second best road infrastructure in the world, third in aviation infrastructure, fifth in quality of port infrastructure and eightth in ground transport network in the Travel and Tourism competitive report by the World Economic Forum, all together are representing major incentive in attracting more FDI into the country.

In addition, the effective marketing and branding campaigns as well as the right implementation of rules and regulations, are key factors as well.

Sultan Al Mansouri, UAE Minister of Economy, said that the cumulative FDI in the UAE is expected to reach $100 billion in 2013.

However, he remarked that there should be more focus to attract different markets to the UAE in order to increase investment flow.

“Africa is a promising potential markets to the UAE with a remarkable GDP growth of almost 7 per cent.”

Change in business climate as well as modification and upgrading of rules and regulations have become the main motivating factors for investment in Dubai, Al Gergawi added.

“Pro-active government initiatives to improve the business environment became visible and recognisable. This was also confirmed by the World Bank’s Doing business report 2013 where the UAE came 26th, a major improvement from the 33rd position in 2012,” he said.