Dubai attracted foreign direct investment (FDI) of Dh46.6 billion in the first half of 2019, up 135 per cent on the same period last year, according to the Dubai Media Office.
In a statement published at the start of Dubai Investment Week, the Dubai government said it ranked third in the world for attracting FDI, both in terms of the capital value flows and number of greenfield projects.
“A new FDI Law, numerous economic incentives and concerted efforts to deepen cooperation and partnerships with the private sector have all contributed to Dubai’s record FDI achievements,” said Sami Al Qamzi, director-general of Dubai Economy.
“The FDI results of the first half of 2019 is a testament to the Dubai economy’s competitiveness and resilience in the face of global shifts and challenges that have adversely affected the flows of FDI globally in recent years,” he added.
In the first half of 2019, Dubai attracted 257 FDI projects with 61 per cent of total projects being greenfield, 27 per cent new forms of investment, 6 per cent reinvestments, 5 per cent made via mergers and acquisitions, and the remaining 1 per cent through new joint ventures.
In terms of investment sources, 34 per cent of the capital invested came from the US, 28 per cent from China, 11 per cent from the UK, and 5 per cent from both France and Singapore, according to the Dubai FDI Monitor. These five countries together accounted 83 per cent of total FDI capital flows into Dubai in the first half of 2019.
Notable FDI deals recorded in Dubai during the first half of 2019 include Uber's acquisition of Careem and Mastercard's investment in payment processor Network International. Around Dh13bn of capital flowed in through such investments.
Major FDI projects announced during the first six months included Zhejiang China Commodities Group's investment in the new ‘Merchant Market’ joint venture and China Co-Op Group's investment in a new food processing plant in Dubai. Both projects amount to Dh12.5bn in greenfield FDI.
There were also increased corporate reinvestments in Dubai, such as HSBC's new Middle East headquarters worth an estimated Dh918 million, Siemens’ new Solar Hydrogen Facility worth Dh248m and the BMW Training Centre project worth Dh29m, among others.
The FDI flows and rankings results were revealed by Dubai Investment Development Agency (Dubai FDI), which is part of Dubai Economy, the emirate's economic development arm.
Dubai Investment Week runs from September 29 to October 3.