KHALEEJ TIMES, Tuesday, Apr 13, 2021 | Ramadan 1, 1442
Dubai posts Dh24.7 billion FDI, creates 18,325 new jobs
Emirates:
Dubai continued its dominance as a preferred destination of global
investors by recording a foreign direct investment (FDI) inflow of Dh24.7
billion into 445 projects, creating an estimated 18,325 new jobs in 2020.
According to the Financial Times’ fDi Markets, the leading global source of data
on greenfield FDI, despite the harsh global epidemic challenge, Dubai currently
ranks first in the Middle East and North Africa region and fourth globally as a
magnet for greenfield FDI capital.
In greenfield FDI projects that attracted 2.1 per cent of all such projects in
2020, exceeding the 2.0 per cent mark for the first time, Dubai also achieved a
record as it continued to lead regional and global FDI locations in facilitating
global business growth and expansion.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and
Chairman of the Executive Council of Dubai, said Dubai’s position as a leading
FDI destination globally and regionally underscores the attractiveness of its
investment environment and the confidence of the investor community in the
emirate’s future economic potential.
“Dubai’s success in combating the Covid-19 pandemic and starting the recovery
phase in record time is a testament to our commitment to provide the best
investment environment in the world and transform global challenges into new
opportunities for growth, driven by technology and innovation, and powered by
Emirati and global talent, making Dubai the best place in the world to work,
live, and invest,” the Dubai Crown Prince said.
According to data from the Dubai FDI Monitor released by the Dubai Investment
Development Agency (Dubai FDI), an agency of Dubai Economy, the record FDI flow
was for 455 projects, exceeding the annual average of past five years.
The outstanding FDI performance of Dubai was in the face of extremely
challenging global investment circumstances created by the Covid-19 pandemic and
its economic impact. According to the Global Investment Trends Monitor published
in January 2021 by the United Nations Conference on Trade and Development,
global FDI plunged 42 per cent to an estimated Dh3.15 trillion from Dh5.5
trillion in 2019.
Sami Al Qamzi, director general, Dubai Economy, said Dubai's economy has
continued to demonstrate high levels of resilience, diversity, and speed of
adapting to changes, supported by its world-class infrastructure, legislation,
and ease of doing business.
“Dubai has become a hub in the global economy, offering growth and expansion
opportunities for investors across strategic and future-oriented sectors in
financial services, logistics, hospitality and trade as well as leading Industry
4.0 technologies, accelerating digital transformation across all sectors,
industries, and smart city services in Dubai,” said Al Qamzi.
Fahad Al Gergawi, chief executive officer, Dubai Investment Development Agency
(Dubai FDI), said thanks to the strategic foresight of Dubai’s leadership and
the emirate’s future-readiness, global investors and entrepreneurs have realised
success and growth in Dubai over the years. “Our performance in 2020 flows from
the success stories that drive investor confidence and the opportunities shaping
future economic potential.”
With more than 50 per cent of all announced FDI projects in the emirate
classified as greenfield FDI, Dubai’s consolidated its status as a smart and
sustainable city of the future, a gateway to regional growth markets and a
leading global business hub in 2020, despite the stringent measures it took to
combat the global pandemic.
FDI capital from reinvestment projects reached Dh1.6 billion in 2020, exceeding
the Dh1 billion mark for the first time since 2016, as per data from Dubai FDI
Monitor.
The US was the top FDI source country, accounting for 21 per cent of capital and
22 per cent of FDI projects. Others among the top five source countries for FDI
capital included France (16 per cent), Japan (11 per cent), the UK (7.0 per
cent), and Germany (6.0 per cent). In terms of projects, the UK accounted for
(14 per cent), France (6.0 per cent), India (6.0 per cent), and the Netherlands
(4.0 per cent) made up the rest of the top five in FDI projects. The top five
source countries accounted for 60 per cent of the total FDI capital flows and 52
per cent of the total number of announced FDI projects.
The top five sectors accounting for 69 per cent of the total FDI capital flows
in 2020 were accommodation & food services (40 per cent), electric power
generation (13 per cent), information services (8.0 per cent), healthcare &
social assistance (4.0 per cent), and retail & whole trade (4.0 per cent). The
top five sectors that received FDI projects, accounting for 54 per cent of the
announced FDI projects into Dubai in 2020, were accommodation & food services
(18 per cent), retail & wholesale trade (14 per cent), software publishers (10
per cent), finance & insurance (6.0 per cent), and management of companies (6.0
per cent).
Dubai’s dynamic innovation, entrepreneurship, and venture capital ecosystem
enabled Dubai-based startups to attract an estimated Dh2.36 billion in FDI
capital through 31 investment deals in 2020, according to data from MAGNiTT, a
Dubai-based firm that captures and analyses startup funding information.
The share of FDI projects in strategic sectors reached 57 per cent of all
announced FDI projects in Dubai in 2020, which further strengthens the
foundation for Dubai’s sustainable economic development. These investments
accounted for 91 per cent of estimated FDI capital flows, reaching a record
Dh22.5 billion. “The Dubai Government’s strategic plans and accelerated
future-readiness have especially attracted strategic FDI into high and
medium-tech sectors in 2020, as 76 per cent of all strategic FDI projects in
2020 were high and medium-tech with a total of Dh11.2 billion in estimated FDI
capital,” Dubai Economy said.
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