Be more flexible ‘to boost investment levels’, global community urged

Dubai: The third edition of the Annual Investment Meeting (AIM) in Dubai meeting was inaugurated by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President of the UAE and Prime Minister and Ruler of Dubai, under the theme ‘A Future International Economic Landscape in the making, implications on FDI Growth in Frontier and Emerging Countries.

Over 84 countries, 42 ministers, 250 companies and more than 5,000 visitors from all over the world are participating in this event.

Sultan Al Mansouri, UAE Minister of Economy and Foreign Trade, yesterday called for a global investment framework to promote foreign direct investment in the food and agriculture sectors.

Participating countries will get the chance, during the meeting, to present their investment opportunities, whose combined value is estimated to be $50 billion (Dh183.65 billion) and across different business sectors including oil and gas, renewable energy, infrastructure, logistics, petrochemicals and agriculture — in addition to focusing on enhancing foreign trade among these countries.

“Desired benefits for international investments do not happen automatically but rather they require continuous work at all levels,” Al Mansouri said.

The economy minister urged the 5,000 businessmen and investors from 80 countries attending this year’s AIM to find new models to improve the relationship between investment and development “to effectively promote sustainable development for all.”

Al Mansouri said current frameworks for global FDI in the food and agriculture sector are not sufficient to promote sustainable development. He noted that the UAE is facing a lot of challenges with the investment agreements signed with different countries.

“The Gulf region and the UAE are facing serious food problems since they import 80 per cent of domestic demand,” Al Mansouri said. “This has pushed the UAE to increase its investment in Asia, Africa and Latin America.”

AL Mansouri urged countries to modify their legal infrastructure and become more flexible as regards investment rules and regulations to attract more investors.

The economy minister noted that global foreign direct investment topped $1.3 trillion in 2012 and is expected to grow to $1.4 trillion in 2013 and $1.6 trillion in 2014. The figure, however, was significantly larger in 2008, weighing in at $2.6 trillion before the world financial crisis.

He said while 2012 FDI stood at $1.3 trillion, the level of investment had failed to adequately address “the socio-economic reality” in targeted countries — an apparent reference to poverty levels in developing nations.

Al Mansouri said these global inflows are expected to rise to $1.4 trillion as a result of the “improvement in the international macro-economic environment.”

He encouraged the delegates to use the AIM 2013 to find solutions and new models that allow all levels of societies to benefit from foreign direct investment.

Sami Al Qamzi, Director-General of the Dubai Department of Economic Development, said FDI inflows into Dubai grew 26 per cent to approximately $8 billion in 2012, compared to $6.3 billion in 2011.

These investments represent 1.6 per cent of the global FDI inflows and were directed at 260 projects across different business sectors. Most of the inflows came from the US, UK and India, he added.