Dubai ranks 3rd globally in attracting FDI

The emirate was also ranked third among the top global FDI locations of the future in 2021, according to the ‘FDI Global Cities of the Future 2021/2022’ report published by fDi Intelligence.

Dubai also ranked second globally in the ‘Major Cities for FDI’ subcategory as well as in ‘Economic Potential and Business-friendly Environment’, with third position in the ‘Connectivity’ subcategory, highlighting the high level of investor confidence in Dubai and its future-readiness.

“Dubai has continued to introduce and implement initiatives that improve business confidence. Global investors have placed their faith in Dubai’s business ecosystem, making it among the most attractive FDI locations in the world,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council.

“Initiatives such as full foreign ownership, an evolving visa administration, and the alignment of the work week with global markets demonstrate Dubai and the UAE’s responsiveness to business needs. Under the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the emirate has implemented numerous initiatives to successfully combat the global pandemic, while focusing on its long-term goals of economic growth and happiness for all. These measures augment Dubai’s attraction for investors seeking opportunities across strategic and emerging sectors while cementing its position as a global economic hub,” he added.

FDI reinvestment projects accounted for 11 per cent of the total FDI projects in the emirate. FDI job creation witnessed a huge growth of 36 per cent during the first nine months of 2021 compared to the same period last year, as 16,430 new jobs were created compared to 12,090 jobs in the same period prior to last year.

The total number of FDI projects increased by 16 per cent, from 326 in the first nine months of 2020 to 378 in the same period of 2021. As much as 58 per cent of the inbound FDI is in strategic sectors and 52 per cent is in greenfield projects. High and medium technology investments comprise 64 per cent of inbound FDI capital, with an increase of 2 per cent over the same period in the previous year.

FDI source countries according to ‘Dubai FDI Monitor’ puts the UK in the lead with 29 per cent of FDI capital inflows into Dubai during the first nine months of 2021, followed by France with 19 per cent, the US at 14 per cent, Saudi Arabia at 6 per cent, and India at 4 per cent. These five countries together accounted for 72 per cent of the total capital inflow into Dubai. In terms of the number of FDI projects, the UK ranked first with 20 per cent, followed by the US with 19 per cent, India with 11 per cent, France with 6 per cent, and Germany with 5 per cent.

Helal Al Marri, Director General of the Department of Economy and Tourism in Dubai, said the positive FDI trends in the first nine months of 2021 showcase the efficacy of Dubai’s future-forward policies in creating new investment opportunities and continuous improvement in the ease of doing business.

“Dubai’s strategic sectors are well positioned to receive global investor participation and provide the foundation of economic recovery and growth. Under the leadership of Sheikh Mohammed and the directives of Sheikh Hamdan, Dubai continues to be one of the leaders in global economic recovery in the post-pandemic phase. We are committed to pursuing policies that effectively sustain a growth-oriented business environment,” Al Marri said.