According to data, Dubai continued to maintain its leadership position among the world’s preferred destinations for foreign direct investment, attracting Dh15.9 billion ($4.3 billion) worth of foreign direct investment (FDI) capital inflows in the first nine months of 2021. The investment places Dubai third globally in key metrics including attracting greenfield FDI capital and projects, for FDI into reinvestment projects and for being among the top global FDI locations of the future, according to the ranking by Financial Times’ FDI Markets, which captures and compares FDI data across the world.
Foreign direct investment (FDI) is a category of investment that reflects the objective of establishing a lasting interest by a resident enterprise in one economy (direct investor) in an enterprise (direct investment enterprise) that is resident in an economy other than that of the direct investor.
16% jump in FDI projects
“Dubai has continued to introduce and implement initiatives that improve business confidence. Global investors have placed their faith in Dubai’s business ecosystem, making it among the most attractive FDI locations in the world,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council.
FDI reinvestment projects accounted for 11 percent of the total FDI projects in the emirate. FDI job creation witnessed a huge growth of 36 percent during the first nine months of 2021 compared to the same period last year, as 16,430 new jobs were created compared to 12,090 jobs in the same period prior to last year.
The total number of FDI projects increased by 16 percent, from 326 in the first nine months of 2020 to 378 in the same period of 2021.
UK leads capital inflows to Dubai
FDI source countries, according to ‘Dubai FDI Monitor’, put the United Kingdom on the lead with 29 percent of FDI capital inflows into Dubai during the first nine months of 2021, followed by France with 19 percent, the United States at 14 percent, Saudi Arabia at six percent, and India at four percent. These five countries together accounted for 72 percent of the total capital inflow into Dubai. In terms of the number of FDI projects, the United Kingdom ranked first with 20 percent, followed by the United States with 19 percent, India with 11 percent, France with six percent, and Germany with five percent.
“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. 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. These measures augment Dubai’s attraction for investors seeking opportunities across strategic and emerging sectors while cementing its position as a global economic hub” Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum added.
Dubai was also ranked third among the top global FDI locations of the future in 2021, according to the ‘FDI Global Cities of the Future 2021/2022’ report published by FDI Intelligence.
The emirate also ranked second globally in the ‘Major Cities for FDI’ subcategory as well as in ‘Economic Potential and Business-friendly Environment’, with the third position in the ‘Connectivity’ subcategory, highlighting the high level of investor confidence in Dubai and its future-readiness.