Foreign direct investments into Dubai rose increases more than 40
The commercial and trading hub of the Middle East received Dh38.5 billion in terms of FDI capital last year, against Dh27.3bn recorded in 2017 and Dh25.5bn a year earlier. This is the first time the emirate has achieved total FDI capital in excess of US$10bn in a financial year, said Fahad Al Gergawi, chief executive of Dubai FDI, the government body responsible for the promotion of foreign investments in the emirate.
The surge in capital flows to the emirate has also helped Dubai’s global ranking in terms of FDI inflows to rise to sixth position, he said, citing fDi Markets data.
Dubai last year also proved itself to be one of the most attractive destination for global talent. Foreign investments resulted in about 25,000 new jobs in the emirate, putting it ninth in the ranking of countries creating jobs through FDI, according to FDI Monitor figures, a Dubai FDI portal that tracks and analyses investment data.
“Medium and high-tech FDI projects, being a major tool in job creation, accounted for 29 per cent of the total jobs added in 2018,” Sami Al Qamzi, director general at Dubai Economic Department, said in a statement.
Attracting foreign investment is high on the UAE’s agenda as the second-biggest Arab economy continues to diversify its revenue base, cutting dependence on oil proceeds. The UAE, which last year passed the FDI law, which streamlines and facilitates capital inflow, is expecting a significant boost in the foreign investments this year.
At the emirate level, Dubai has launched several initiatives of its own relating to improving the ease of doing business and attracting
a lot of small and medium-sized investments and global talents.
The accommodation and food services sector was the top FDI recipient, accounting for 46 per cent of the capital inflows into Dubai in 2018. Non-residential building construction with 15 per cent, residential building construction with 8 per cent, entertainment with 5 per cent finance sector with 4 per cent were the other sectors in the top five, data showed.