Life & Style | People
Hurdles facing private investors
The per capita share of foreign direct investment is a modest 0.5 per cent, and most countries in the region, including the UAE, are changing their stances to encourage private investment.
- By Ahmed A. Elewa, Staff Reporter
- Published: 00:21 February 4, 2008
- Gulf News spoke to Shaikh Musalam Salim Bin Ham, member of the National Consultative Council and Chairman of Bin Ham Group.
- Image Credit: Supplied Picture
The investment environment in the UAE has achieved remarkable progress during the past few years, yet some concerns of private investors still need to be addressed if the
government is to succeed in placing the UAE among the most transparent, lucrative and efficient investment platforms in the region.
Gulf News spoke to Shaikh Musalam Salim Bin Ham, member of the National Consultative Council and Chairman of Bin Ham Group, seeking his views about the hurdles facing private investors in general, and the most promising sectors in particular.
Gulf News: What are the challenges facing private investment in the UAE?
Shaikh Musalam: There are many challenges facing private investment in the region as a whole, of which I think the most important are the restrictions on foreign investment in some sectors, outdated laws and systems relative to international and regional developments, soaring labour cost, limited domestic consumer markets, as well as those related to information flow and the increasing costs of services and finance.
The per capita share of foreign direct investment is a modest 0.5 per cent, and most countries in the region, including the UAE, are changing their stances to encourage private investment.
Which are the most attractive sectors for private investment in the UAE today?
Real estate remains the most attractive sector, given that total investment in the sector will touch Dh500 billion by 2010. Tourism is also a promising sector, with more than seven million tourists visiting the UAE in 2007.
Investment in tourism constitutes about 12 per cent of the total investment in the UAE, where the number of hotels has increased by 25 per cent in 2007.
What about the industrial sector?
After the new industrial law, which has addressed many past negative aspects, the platform is set for a tangible expansion of the sector. Nevertheless, investing in industry requires more time in research, as well as providing for the necessary foundations and infrastructure.
Which are the major projects currently under way for your group?
Most important, and in line with what I said, our City Seasons Hotels Group reflects clearly our investment strategy, where we have set a comprehensive expansion plan with three existing hotels and four more in the pipeline.
The investment cost for the new hotels is estimated at Dh1.5 billion, including hotels in Abu Dhabi, Dubai and Muscat. We are also planning a variety of new investments in Sudan during the coming period. We also have a tower under construction in Dubai.
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