Foreign direct investment to grow

Foreign direct investment (FDI) is expected to grow in light of modernising legislation, a ministry official at the Ministry of Economy and Planning said yesterday. New proposals will make the UAE the most attractive destination for foreign and Arab funds, she said.

The Ministry of Economy and Planning will set up a comprehensive data-base on foreign direct investment, said Nada Yousuf Al Hashimi, head of the Gulf Cooperation Council department in the ministry. It will be completed in the first quarter of 2006. "The project will be updated every year."

"The project will increase funds flowing into the country and increase its attractiveness to investors and foreign direct investment, Nada said. The database will help put the UAE at the top of investment-attracting countries.

The ministry held the second meeting of the national work team assigned to set up the database to develop the practical steps for the project.

The database project will be implemented with the collaboration of the UAE Central Bank, Ministry of Finance and Industry, Dubai Development Board and Abu Dhabi Chamber of Commerce and Industry.

The Economic and Social Committee for West Asia (ESCWA) and the United Nations Conference on Trade and Development are also involved.

The team will commission a study on economic rules and will formulate new investment legislation that will eliminate barriers to the inflow of foreign funds and Arab investment.