The UAE has been ranked as the second most preferred destination for foreign direct investments globally, as the country continues efforts to further diversify its economy.
The Emirates was second to the US, but outranked the UK (at third), India (fourth) and Germany (fifth) in the rankings, state news agency Wam cited an FDI Intelligence report as saying.
The Emirates, which received Dh167 billion ($45.5 billion) in FDI last year, aims to increase that figure to Dh1.3 trillion by 2031.
The UAE was also ranked as the world’s top FDI performer last year relative to the size of its economy, followed by Namibia and Costa Rica, according to FDI Intelligence’s Greenfield FDI Performance Index released this week.
“Investor confidence in the Gulf’s business hub remained strong last year,” the report said. The country received “more than 14 times the volume of FDI projects that one might expect given the size of its economy”, it added.
To boost FDI, the UAE has unveiled several initiatives including 100 per cent foreign ownership of companies, reduced visa restrictions and incentives for small and medium enterprises.
It also unveiled the NextGen FDI programme, which seeks to speed up licensing, increase the issuance of bulk or golden visas, improve banking services and provide commercial and residential lease incentives for technology companies seeking to relocate to the country.
The UAE's push to sign a series of Comprehensive Economic Partnership Agreement with its partners around the globe has also helped to boost FDI.
Launched in 2021, Cepa deals reduce tariffs and remove trade bottlenecks and boost bilateral investment in priority areas.
