Dubai: Dubai has recorded strong growth in foreign direct investment (FDI) in the first half of 2019 with Emirate attracting FDI projects worth Dh46.6 billion, a growth of 135 per cent compared to the same period last year, according to Dubai Investment Development Agency (Dubai FDI).
Sheikh Hamdan bin Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, said that the significant growth in FDI into Dubai is a testament to global confidence in Dubai’s economy.
The latest announcement on FDI inflows into Dubai coincides with the Dubai Investment Week (DIW) that runs from September 29 to October 3. DIW offers participants an opportunity to learn about Dubai’s strategic advantages as a city of the future, gateway to regional growth markets and its growing role as a pivotal hub in the global economy and a preferred global FDI destination under the Dubai 2021 Plan.
“Dubai is among the top three global FDI locations thanks to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, which created a global investment environment in Dubai that keeps pace with the aspirations of investors, entrepreneurs and technology shifts in the region and the world,” said Shaikh Hamdan bin Mohammad.
Gains in ranking
Dubai has continued to progress in global rankings of the most attractive cities for FDI, ranking third in the world in attracting FDI, in terms of both capital flows and the number of greenfield projects. The FDI flows and rankings results were revealed by Dubai FDI, an agency of Dubai Economy-Government of Dubai, based on the Financial Times’ FDI Markets, an online platform that monitors data on capital flows and greenfield FDI projects around the world and the ‘Dubai FDI Monitor’ data.
“This is a proud achievement for Dubai. With the growth of talent and technology, Dubai will accelerate its drive to become the smartest and most sustainable city of the future,” Shaikh Hamdan
According to ‘Dubai FDI Monitor’ data, FDI projects with High and Medium Technology component reached 47 per cent of total FDI projects in the first half of 2019, based on the Organisation for Economic Co-operation and Development (OECD) classification criteria.
FDI projects with High and Medium Technology component were at the forefront of creating new jobs with a 48 per cent share of the 24,294 new jobs created by FDI projects in the first half of 2019.
“The FDI results of the first half of 2019 is a testament to the Dubai economy’s competitiveness and resilience in the face of global shifts and challenges that have adversely affected the flows of FDI globally in recent years,” said Sami Al Qamzi, Director General of Dubai Economy,
Data from Dubai FDI Monitor showed Dubai has attracted 257 FDI projects in the first half of 2019. 61 per cent of total projects were greenfield, followed by 27 per cent new forms of investments (NFIs), 6 per cent reinvestment, 5 per cent mergers and acquisitions (M&As), and 1 per cent for new joint ventures, with Strategic FDI projects accounting for 62 per cent of total FDI capital flows to Dubai in the first half of 2019.