DUBAI, 31 October 2022 (WAM) — Dubai has consolidated its status as the world’s leading foreign direct investment (FDI) center, maintaining its top position globally in attracting FDI projects during the first half of 2022.

In a record first half for the emirate, Dubai attracted 492 FDI projects during the first six months of 2022, an 80.2% increase over the same period in 2021, according to data released by the Dubai Department of Economy and Tourism (DET).

Dubai also ranked first globally in attracting greenfield FDI projects during the same period this year, according to Financial Times Ltd’s “FDi Markets”, the most comprehensive online database of cross-border greenfield investment. Greenfield projects accounted for 56% of Dubai’s FDI projects during the period, according to Dubai Investment Development Agency (FDI Dubai), a DET entity, using data from Dubai FDI Monitor. Dubai recorded AED 13.72 billion FDI inflows in the first half of 2022, reflecting a growth of 14.6% compared to the same period last year.

Meanwhile, FDI investments and projects generated 15,164 new jobs in the first half of 2022, growing 33.5% year-on-year compared to the first half of 2021. Dubai maintains its top position in employment-related FDI among Central East African countries. and North (MENA).

Underscoring its interest in maintaining investment and investor confidence, Dubai ranks fourth globally for FDI reinvestment projects, tenth globally for FDI capital inflow reinvestment and eighth place in terms of jobs created by reinvestment projects.

Dubai ranks first globally in attracting greenfield FDI projects in 2021, with 418 greenfield FDI projects, and the latest figures attest to its business-friendly initiatives and policies. Investor confidence in the emirate remains high, reflecting economic stability and bright growth prospects.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Emirates Executive Council, expressed his satisfaction at the new global and regional FDI achievements, which he said were in line with His Highness Sheikh Mohammed’s guidelines. bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the best city in the world to live, work and invest in.

“We remain committed to enriching Dubai’s business environment to explore new growth avenues with our investment partners for greater success in the years to come. Continue to diversify the economy, attract more investment in future-oriented sectors and increase growth opportunities.” digital economy, will continue to be our strategic goal for Dubai’s development journey,” he added.

The growth in FDI inflows puts Dubai in a leading position globally across all key metrics. Likewise, it attracts FDI and capital projects of all types, including greenfield projects, reinvestments, mergers and acquisitions projects, and new forms of investment.

While 56% of FDI projects arriving in the emirate in the first half of 2022 are initial projects, 29% fall into the category of new forms of investment, 6% are venture capital-backed FDI projects, 5% are mergers and acquisitions (M&A) projects, 3 % is reinvestment and 1% is joint venture.

Data from the “Dubai FDI Monitor” also shows that medium and high technology projects accounted for 62% of total FDI projects in the first half of 2022, while 38% were low technology investment projects. The emphasis on technology demonstrates Dubai’s success in attracting global talent and capital towards its transition as a digital economy.

The “Dubai FDI Monitor” recently received special attention from the United Nations Economic and Social Council for Asia and the Pacific (UNESCAP) as the world’s best investment monitoring and control practice.

The UK (36%), United States (20%), France (10%), Singapore (5%) and Switzerland (4%) were the main origin countries of FDI capital in Dubai during the first half of 2022. In terms of FDI projects, the five sources the top markets are the United States (18%), UK (15%), India (13%), and Singapore and France (4%).

The top five sectors in terms of FDI capital inflows to Dubai in the first half of 2022 are specialized trading contractors (28%), the non-residential building construction sector (12%), accommodation and food services (12%), data processing, accommodation and related services (6%) and power generation (4%).

The wholesale and retail trade and accommodation and food services sectors lead the list with 11% each in terms of the number of FDI projects, followed by computer systems design and related services sectors, software publishing and administrative and support services, with 7% each.

The rankings testify to Dubai’s success in achieving global leadership across many FDI sub-sectors. Emirates ranks first in the world for the number of projects in Creative Industries and the number of FDI projects in the Business Services, Financial Services, Transport and Storage, Industrial Equipment and Sales, Marketing and Support sectors.

Translated by: A. Abdelazeem
https://wam.ae/en/details/1395303096669