Dubai attracted 15.9 billion dirhams ($4.3 billion) in foreign direct investment from 378 projects in the first nine months of 2021 as the emirate’s economy continued to recover from the coronavirus pandemic.
“Dubai has continued to introduce and implement initiatives that improve business confidence,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council of the emirate.
“Global investors have placed their trust in Dubai’s business ecosystem, making it one of the most attractive locations for FDI in the world. Initiatives such as full foreign ownership, an evolving visa administration and alignment of the working week with global markets demonstrate the responsiveness of Dubai and the UAE to business needs.
FDI reinvestment projects accounted for 11% of total FDI projects in the emirate, while job creation from FDI jumped 36% in the first nine months of 2021 to 16,430 new jobs, according to data from the “Dubai FDI Monitor” published by the Dubai Investment Development Agency (Dubai FDI), which is part of the emirate’s Department of Economy and Tourism.
The total number of FDI projects increased by 16% to 378 during the period. No less than 58% of incoming FDI is intended for strategic sectors and 52% for completely new projects. Investments in high and medium technology accounted for 64 percent of FDI inward capital, an increase of 2 percent from the same period a year earlier, according to the data.
The UK, France and the US are among the top FDI source countries, followed by Saudi Arabia and India, according to the data.
The five countries together accounted for 72% of the total capital inflow to Dubai. In terms of number of FDI projects, the UK ranked first with 20%, followed by the US with 19%.
“Dubai’s strategic sectors are well positioned to receive participation from global investors and lay the foundations for economic recovery and growth,” said Helal Al Marri, Director General of the Department of Economy and Tourism in Dubai.
“We are committed to pursuing policies that effectively support a growth-oriented business environment.”
The “FDI Global Cities of the Future 2021/2022” report published by fDi Intelligence, a division of FinancialTimesranked Dubai as the third best global location for FDI of the future in 2021. Dubai was also ranked second globally in the sub-category of major cities for FDI as well as economic potential and enabling environment to businesses, with the third position in the Connectivity sub-category.
“At Dubai FDI, we have continued to support existing and potential investors on their journey throughout the pandemic period,” said Fahad Al Gergawi, Managing Director of Dubai FDI. “Expo 2020 Dubai has proven to be an excellent platform to attract global businesses, ensuring economic growth accelerates.”
Business conditions in Dubai’s non-oil private sector economy were at their highest level in two and a half years in December, driven by a surge in new orders amid increased demand from Expo 2020 Dubai and an improvement in the tourism sector.
The emirate’s seasonally adjusted IHS Markit Purchasing Managers’ Index rose to 55.3 in December from 54.5 in November, signaling a marked improvement in operating conditions as the non-oil economy continued to recover. to sort out.
Property transactions have also surged in the emirate amid the economic recovery. Dubai recorded 84,196 real estate transactions worth 300 billion dirhams last year, the highest annual value recorded in the emirate’s history, the Dubai Land Department said.
Updated: January 30, 2022, 3:17 p.m.