Dubai’s cultural and creative industries ranked first globally in the number of new projects started through foreign direct investment last year, a new report has found.
The emirate saw a record 451 new creative and cultural economy projects, surpassing London, Singapore, Paris and Berlin, said the Dubai FDI Monitor report, compiled by the emirate's Department of Economy and Tourism.
Total FDI capital flows to Dubai’s cultural and creative industries increased to Dh7.36 billion ($2 billion) in 2022, ranking it first in the Mena region and 12th globally, the data showed.
The emirate improved its global ranking from 14th place in 2021.
“These notable accomplishments exemplify the remarkable strides made by Dubai’s cultural and creative industries and highlight the strength of its economic ecosystem,” Sheikha Latifa bint Mohammed, chairwoman of the Dubai Culture and Arts Authority and member of the Dubai Council, said on Sunday.
“The emirate attracts innovators and talented individuals worldwide, providing them with an enabling environment where innovative projects can flourish, ground-breaking ideas can be nurtured and ambitious concepts can be transformed into thriving economic ventures.”
The UAE emerged from the coronavirus pandemic with a sharper focus on pushing into high-value sectors as it presses forward with diversifying its economy and reducing its reliance on oil.
The cultural and creative industries currently contribute 3.5 per cent to the UAE’s gross domestic product and this share is projected to grow to 5 per cent by 2031, said Noura Al Kaabi, Minister of Culture and Youth.
The UAE Culture Agenda 2031 was launched in 2018 as the first nationwide strategy unifying the efforts of the sector.
In 2021, the nation launched the 10-year National Strategy for the Cultural and Creative Industries, the first in the Arab world, aiming to boost the two sectors.
The strategy intends to expand the size and capabilities of the two sectors and rank them among the top 10 most important economic industries in the Emirates.
It also aims to double the number of establishments operating in the two sectors and the number of jobs they provide.
It also aims to increase the volume of exports of their products and services and the average spending of families in the sectors.
Al Quoz Creative District - in pictures
The plan will also develop legislation and policies to help entrepreneurs and freelancers, and improve returns on investments.
The US, India, the UK, France and Switzerland emerged as the leading foreign direct investors in Dubai’s cultural and creative industries in terms of FDI projects last year, according to the report, based on data from the Financial Times’ fDi Markets.
The US, India, Switzerland, France and the UK topped the list in terms of FDI capital inflows.
Greenfield FDI accounted for 76 per cent of the projects in Dubai’s cultural and creative industries in 2022, followed by new forms of investments (13 per cent of the total), mergers and acquisitions and reinvestment projects (5 per cent each), and joint ventures (1 per cent).
“The number one global ranking in attracting FDI projects into the cultural and creative sectors also highlights Dubai’s commitment to build on and leverage its supportive environment, world-class infrastructure and a legislative system that stimulates the creative economy, attracting a new generation of global talents, investors and entrepreneurs,” said Helal Al Marri, director general of the Department of Economy and Tourism in Dubai.
In terms of the number of new jobs in the creative and cultural industries, Dubai held on to its top rank regionally and sixth globally with 12,368 jobs created from FDI last year, the report said.
Over the past few years, the top sub-sectors in Dubai’s creative industries that have grown dynamically have been non-video game software publishers, custom computer programming services, architectural, engineering and related services, data processing, hosting and related services, and the motion picture and sound recording industries, the report said.
