UAE ranks second globally in attracting new greenfield investments

Dubai: The UAE has been recognised as the second-most attractive destination worldwide for new, or ‘greenfield’, foreign direct investment (FDI), a significant indicator of its growing global appeal for businesses. John Cunliffe, Strategic Business Development Director at RAKEZ, said accessibility to various markets and the UAE’s strategic geographic location make it an extremely favourable investment destination.

“If you look at the UAE on a map, a world map, you see that accessing Europe is very easy, accessing Asia is very easy, and also into America, a little bit. So, it is not only connectivity that the UAE benefits from. It's that geographic position of being able to access the companies in different time zones,” Cunliffe said during a panel discussion at the recent Gulf News UAE Growth and Investment Forum.

Cunliffe said that this impressive ranking, based on recent FDI data, underscores the success of the UAE's strategic initiatives in attracting international companies looking to establish new operations. He said that while RAKEZ boasts over 35,000 companies, with a substantial 80 per cent being national or international, the broader UAE ecosystem plays a crucial role in this global recognition.

The panellists concurred that a multitude of factors contribute to the UAE's investment magnetism. Ahmed Hassan, Head of Client Experience at Meydan Free Zone, stated that the country's central geographical location offers unparalleled access to markets across Asia, Africa, and Europe. He described the UAE not just as a launchpad but as a "runway for steady take-off" due to its supportive ecosystem and streamlined digital processes that ease the administrative burden for foreign investors.

Hassan said, “The UAE is not a launch pad for startups. It is a runway for steady takeoff, smooth operation, and landing your organisational goals. The system here has been designed to support the clients from A to Z to make sure that their experience is seamless.”

He added. “You are fully digital, and you can deliver whatever the client is requesting from you, and that, by itself, creates and builds trust for the current investors, for the foreign investors, and to attract more people into the country.”

Syam P. Prabhu, Founder and Managing Director of Aurion, also stated that the UAE's beneficial policies include numerous Comprehensive Economic Partnership Agreements (CEPA) and double taxation avoidance agreements with a vast number of countries. He also said the strategic time zone that facilitates seamless engagement with businesses across continents.

Muneer Al Wafaa, Founder and CEO of Al Wafaa Group, also emphasised the crucial role of cutting-edge technology and futuristic digital infrastructure in driving business growth. He said the government's commitment to implementing smart licensing and making processes investor-friendly, even enabling company setups remotely.

Musthafa NK, Managing Director of Tecpro Solutions, also highlighted the relative ease of starting a business in the UAE. Compared to other countries, we can say that UAE visionaries created straightforward steps to start any startup here, even 20-30 years ago. So... there is not much hurdle to start up any business [from a regulatory standpoint]," he stated.