Dubai has reaffirmed its status as a leading global destination for foreign direct investment (FDI), securing the third position globally in attracting FDI capital inflows. According to data from Financial Times’ FDI Markets, Dubai attracted Dh15.9 billion ($4.3 billion) worth of FDI in the first nine months of 2021. This impressive achievement underscores Dubai’s robust business environment and its strategic initiatives aimed at fostering economic growth and investor confidence.
DUBAI’S REMARKABLE FDI PERFORMANCE
Dubai’s stellar performance is evident in several key metrics, including attracting greenfield FDI capital and projects, FDI into reinvestment projects, and being recognized among the top global FDI locations of the future. This performance highlights Dubai’s strategic initiatives and policies designed to attract and retain foreign investment.
16% Increase in FDI Projects
One of the standout achievements for Dubai in 2021 was the 16% increase in FDI projects. The number of projects grew from 326 in the first nine months of 2020 to 378 in the same period of 2021. This growth reflects the confidence global investors have in Dubai’s business ecosystem.
Significant Growth in Job Creation
FDI-driven job creation also saw significant growth, with a 36% increase compared to the previous year. In the first nine months of 2021, FDI projects generated 16,430 new jobs, up from 12,090 jobs in the same period in 2020. This surge in job creation underscores the positive impact of FDI on Dubai’s labor market and economy.
Leading Source Countries for FDI
According to the ‘Dubai FDI Monitor’, the United Kingdom was the leading source of FDI capital inflows into Dubai, accounting for 29% of the total. France followed with 19%, the United States with 14%, Saudi Arabia with 6%, and India with 4%. Together, these five countries accounted for 72% of the total capital inflow into Dubai. In terms of the number of FDI projects, the UK ranked first with 20%, followed by the US with 19%, India with 11%, France with 6%, and Germany with 5%.
Strategic Initiatives Fueling Growth
Dubai’s continued success in attracting FDI can be attributed to several strategic initiatives. The introduction of full foreign ownership, the evolution of visa administration, and the alignment of the workweek with global markets are key measures that have enhanced Dubai’s attractiveness to investors.
“Initiatives such as full foreign ownership, an evolving visa administration, and the alignment of the workweek with global markets demonstrate Dubai and the UAE’s responsiveness to business needs,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council. “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.”
Global Recognition and Future Prospects
Dubai’s efforts have not gone unnoticed. The emirate was ranked third among the top global FDI locations of the future in the ‘FDI Global Cities of the Future 2021/2022’ report published by FDI Intelligence. Additionally, Dubai ranked second globally in the ‘Major Cities for FDI’ subcategory and in ‘Economic Potential and Business-friendly Environment’. The emirate also secured the third position in the ‘Connectivity’ subcategory, highlighting its readiness for future growth and its appeal to global investors.
Conclusion
Dubai’s impressive ranking in global FDI metrics is a testament to its strategic vision, robust business ecosystem, and investor-friendly policies. As the emirate continues to implement forward-thinking initiatives and adapt to global economic trends, it is poised to remain a top destination for foreign investment, driving sustainable economic growth and prosperity.
Stay tuned to our blog for more updates on Dubai’s economic landscape and investment opportunities.