| 26 September 2022, Monday |

Dubai attracts $4.3bn in foreign direct investment in first nine months of 2021

In the first nine months of 2021, Dubai attracted Dh15.9 billion ($4.3 billion) in foreign direct investment from 378 projects as the emirate’s economy recovered from the coronavirus outbreak.

“Dubai has continued to adopt and execute policies that boost business confidence,” stated Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the emirate’s Executive Council.

“Global investors have put their trust in Dubai’s business environment, making it one of the most appealing FDI destinations in the world.” Initiatives like 100% foreign ownership, developing immigration administration, and aligning the work week with global markets show Dubai and the UAE’s responsiveness to corporate demands.”

According to data from the “Dubai FDI Monitor” released by Dubai Investment Development Agency (Dubai FDI), which is part of the emirate’s Department of Economy and Tourism, FDI reinvestment projects accounted for 11% of total FDI projects in the emirate, while job creation due to FDI increased 36% to 16,430 new jobs during the first nine months of 2021.

During the time, the total number of FDI projects climbed by 16% to 378. As much as 58% of inward FDI is directed into strategic sectors, with the remaining 52% directed toward greenfield projects. According to the World Bank, high and medium technology investments accounted for 64% of incoming FDI capital, a 2% increase over the same time the previous year.

According to the data, the top FDI source nations are the United Kingdom, France, and the United States, followed by Saudi Arabia and India.

The five nations collectively accounted for 72% of all capital inflows into Dubai. In terms of the number of FDI projects, the UK led the way with 20%, followed by the US with 19%.

“Dubai’s critical industries are well positioned to attract global investor engagement and lay the groundwork for economic recovery and growth,” said Helal Al Marri, director general of Dubai’s Department of Economy and Tourism.

“We are dedicated to adopting policies that successfully preserve a business climate that is conducive to development.”

The fDi Intelligence, a branch of the Financial Times, issued the ‘FDI Global Cities of the Future 2021/2022′ research, which put Dubai third among the top global FDI sites of the future in 2021. Dubai was also placed second internationally in the Major Cities for FDI subcategory, as well as in Economic Potential and Business-Friendly Environment, and third in Connectivity.

“At Dubai FDI, we have maintained to help existing and potential investors during the pandemic period,” stated Fahad Al Gergawi, CEO of Dubai FDI. “Expo 2020 Dubai has proved to be a great platform for attracting global industry, ensuring economic progress gains traction.”

In December, business conditions in Dubai’s non-oil private sector economy were at their best in two and a half years, thanks to a large increase in new orders fueled by Expo 2020 Dubai demand and an improvement in the tourist industry.

The emirate’s seasonally adjusted IHS Markit Purchasing Managers’ Index rose to 55.3 in December from 54.5 in November, indicating a strong improvement in operational conditions as the non-oil sector recovered.

Property transactions have also increased in the emirate as the economy recovers. According to the Dubai Land Department, the emirate reported 84,196 property sales for Dh300 billion last year, which is the greatest yearly amount recorded in the emirate’s history.

  • The National News