His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, stated that the increase in foreign direct investment (FDI) inflows demonstrates growing investor confidence in Dubai, UAE.

His Highness reported that FDI into Dubai reached US$4.84 billion, a 26% increase compared to the first half of last year, during the first half of 2018. The number of FDI projects also rose significantly to 248, a 40% increase over the same period last year. These figures are from Dubai FDI Monitor data published by the Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development (DED) in Dubai.

“This increase in FDI capital and projects reinforces Dubai’s leading position as the preferred location for global businesses and startups seeking growth and expansion. It’s a clear reflection of investor confidence in Dubai’s economy,” Sheikh Hamdan added. Dubai’s ability to maintain its status as a top global FDI destination reflects the confidence of the global investor community in its business environment, he said. They value its ability to offer diverse investment opportunities in key growth sectors, especially knowledge and technology.

The Dubai FDI Monitor shows that 43% of all FDI projects in the first half of 2018 utilize high and medium technology, according to the Organisation for Economic Co-operation and Development (OECD)*. Strategic projects accounted for 56% of all investment projects attracted to Dubai in the first half of 2018. India and Thailand were among the top five source countries for FDI capital. India was also among the top five countries initiating investment projects.

Sheikh Hamdan emphasized Dubai’s success in attracting investments from both developed and developing markets. Dubai provides a platform for businesses to serve markets across the Middle East, Africa, and South Asia. This has strengthened the emirate’s status as a strategic gateway to regional and international markets and a pivotal hub in the global economy, he said.

He also acknowledged Dubai FDI’s role in increasing global awareness of the advantages Dubai offers. These advantages include being a smart and sustainable city of the future, a gateway to regional growth markets, and a global business hub. Dubai is also a city that attracts FDI that contributes positively to sustainable economic growth and prosperity.

His Excellency Sami Al Qamzi, Director General of DED, stated: “FDI flows in the first half of 2018 reaffirm the sustained growth of Dubai’s economy and the emirate’s diversity, competitiveness, and attractiveness.” He said the 2018 results build on Dubai’s achievements in 2017, which include being ranked 4th in greenfield FDI projects, 10th in FDI capital flows, and 5th in FDI reinvestment projects globally.

He also stressed that Dubai’s economy is confident of boosting FDI flows. This confidence is supported by strengthening economic stimulus, closer cooperation and partnership within the business community, and new laws. These laws enhance Dubai’s competitiveness as a preferred FDI destination and a leading incubator for innovation.

His Excellency Fahad Al Gergawi, CEO of Dubai FDI, said the growth of foreign investments into Dubai, as well as new projects and investments based on advanced technology, underscores Dubai’s significant role in driving the 4th Industrial Revolution. It also demonstrates its ability to be prepared for future economic shifts. The emirate’s strategic approach of encouraging investment in industries based on innovation, artificial intelligence (AI), and the Internet of Things (IoT) have also proven attractive for investors, he said.

Al Gergawi added: “We are confident about the future prospects for enhancing FDI flows, especially following the issuance of new laws that enhance Dubai’s competitiveness as a preferred global destination for investment and an incubator for innovation and creativity, including laws allowing 100% foreign ownership of companies (and) 10-year residency visas for investors, innovators, professionals, and top-performing students.”

Dubai has witnessed an increase in FDI capital inflows in the past year despite the decline in global FDI flows. Total FDI flows reached AED27.3 billion in 2017, a 7% increase compared to 2016.

*OECD classifies technology as high, medium-high, medium-low, and low-technology. This classification is based on the importance of expenditures on research and development relative to the gross output and value-added of different industries producing goods for export. Examples of high-technology industries are aircraft, computers, and pharmaceuticals. Medium-high-technology includes motor vehicles, electrical equipment, and most chemicals. Medium-low-technology includes rubber, plastics, basic metals, and ship construction. Low-technology industries include food processing, textiles, clothing, and footwear.