Dubai retained its position as the world's top destination for foreign direct investment projects in the first half of this year, according to a report.
In the first six months of the year, the emirate attracted 492 FDI projects, an 80.2 per cent year-on-year jump, according to data published by Dubai’s Department of Economy and Tourism (DET), Dubai Media Office said in a statement on Monday.
Dubai witnessed FDI inflows of Dh13.72 billion ($3.74bn) in the January-June period, reflecting growth of 14.6 per cent compared with the same period last year.
The emirate offers one of the safest and most stable business environments, boosting investor appetite, said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.
“The emirate provides a policy ecosystem for future-focused high-tech sectors, while its robust infrastructure offers a productive environment for conventional businesses.
“Alternative investments and high-tech projects contribute an increasing proportion of the emirate’s growing FDI inflows, underscoring Dubai’s position as the capital of the global digital economy and a hub for innovation and advanced technology,” Sheikh Hamdan said.
Dubai also ranked first globally in attracting greenfield FDI projects during the same period, as per the Financial Times’ ‘fDi Markets’ — one of the most comprehensive online database on cross-border greenfield investments.
Greenfield projects accounted for a 56 per cent share of Dubai’s FDI projects during the period, according to the Dubai Investment Development Agency (Dubai FDI), a DET entity, using data from its Dubai FDI Monitor.
Meanwhile, FDI investments and projects generated 15,164 new jobs in the first half of the year, up 33.5 per cent on the year.
Dubai also retained its top rank in FDI-related employment among countries in the Middle East and North Africa. It ranked fourth globally in reinvestment FDI projects, 10th globally in reinvestment FDI capital inflows and eighth in terms of jobs created by reinvestment projects.
“We started the year at an accelerated pace, catalysed by a hugely successful Expo 2020, a reignition of global tourism … a raft of progressive visa policies and legislation, and Dubai showing strong and sustained resilience within the context of international economic and supply chain pressures,” Helal Al Marri, DET’s Director General, said.
“Our achievements in attracting investment affirm our commitment to work towards advancing Dubai’s leading position, raising its economic and tourism competitiveness, expanding the horizons for international trade, and keeping pace with future developments to position Dubai as the best city in the world to live, work and invest.”
While 56 per cent of the FDI projects that came into Dubai in the first half of this year were greenfield projects, 29 per cent belonged to the category of new forms of investment, 6 per cent were VC-backed FDI projects, 5 per cent were mergers and acquisition projects, 3 per cent were reinvestment and 1 per cent joint ventures.
The top source countries for FDI capital in Dubai during the first half were the UK (36 per cent), the US (20 per cent), France (10 per cent), Singapore (5 per cent) and Switzerland (4 per cent).
In terms of FDI projects, the top five source markets were the US (18 per cent), the UK (15 per cent), India (13 per cent), and Singapore and France (4 per cent each).
The five most prominent sectors in terms of FDI capital inflows to Dubai in the six-month period were speciality trade contractors (28 per cent), non-residential building construction sector (12 per cent), accommodation and food services (12 per cent), data processing, hosting and related services (6 per cent), and electric power generation (4 per cent).