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Friday, September 22, 2023

Dubai again tops list for attracting greenfield FDI projects


Dubai maintained its top position globally for attracting greenfield FDI projects in 2022, further cementing its position as the world’s top FDI hub, according to the Financial Times’ 2022 ‘fDi Markets’ report.

Dubai topped the list for the second year in a row, with total FDI projects announced in 2022 up 89.5% year-on-year, while total FDI capital soared 80.3% over the same period, further cementing the emirate’s position as one of the world’s top three cities, a key focus of Dubai’s economic agenda D33 The goal, initiated by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.

According to the Financial Times, the emirate’s share of attracting global greenfield FDI projects hit 4%, up 1.9% compared to 2021, with a record 837 projects bringing the city’s Highest growth in global share’ fDi Markets, the most comprehensive online database of cross-border greenfield investments. Dubai has attracted a total of 1,173 FDI projects in 2022.

The Dubai FDI Monitor data also showed that total FDI capital inflows to Dubai are expected to be AED 47 billion (US$ 12.8 billion) in 2022, compared to AED 26.07 billion in 2021.

It is estimated that 38,447 jobs will be created in Dubai in 2022, compared to 24,932 in 2021.

In 2022, the top five source countries of FDI projects accounted for 54% of the total, namely the United States (20%), the United Kingdom (13%), India (12%), France (5%) and Switzerland (4%).

Furthermore, the top five source countries of FDI capital accounted for 72% of the estimated total inflows to the UAE in 2022, being Canada (41%), the UK (12%), the US (11%) and India (4%). %) and Switzerland (4%).

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said: “Dubai ranks first globally in greenfield FDI projects for the second year running. Demonstrates its ability to sustain its momentum. Even in times of global economic headwinds, and a compelling investment value proposition.

“Driven by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the emirate provides the high level of stability, sustainability needed to ensure long-term growth , infrastructure and opportunity-rich environment trusted by international investors, businesses and entrepreneurs. Over the years, Dubai has established dynamic partnerships with global investors to accelerate innovation and create lasting economic value. Dubai has a strong presence in a wide range of industries , especially in future-oriented industries, is a world leader in attracting foreign direct investment, a fact that is a testament to the strategic vision articulated in D33, Dubai’s Economic Agenda, which aims to strengthen Dubai as one of the world’s top urban economies status.”

The Financial Times’ fDi Markets 2022 figures show that Dubai has maintained and improved its leadership in key FDI attraction indicators.

The emirate ranks first in attracting FDI projects into the tourism, business services, financial services, transportation and warehousing, consumer goods, and software and IT services sectors.

Dubai has also become a world leader in attracting FDI projects by 2022 in terms of creative industry clusters, R&D projects and attracting FDI project headquarters by hosting global and regional headquarters of international companies.

Helal Saeed Almarri, Director General, Dubai Ministry of Economy and Tourism, said: “Dubai’s leading global FDI ranking supports the framework of comprehensive initiatives launched to further strengthen the city’s business and investment climate under the directive of His Highness Sheikh Mohammed, Vice President and Prime Minister of the UAE Sheikh bin Rashid Al Maktoum of Dubai.

“Our strategy to further consolidate the city as one of the top three global cities in line with Dubai Economic Agenda D33 is reinforced by our achievements in attracting and stimulating foreign direct investment and reflects the confidence of investors, multinational corporations, entrepreneurs – “There have been ups and downs, and global talent has poured into Dubai. The city’s growing share of global greenfield FDI projects clearly demonstrates the effectiveness of our strategy and underscores the city’s status as a global capital of the digital economy and a center for innovative technologies, further Ensuring increased FDI inflows remains a top priority and a key D33 agenda objective,” added Helal Almarri.

Overall, Dubai ranks seventh globally in attracting Greenfield FDI Capital and fifth globally in FDI Jobs in 2022.

From a Middle East and North Africa perspective, Dubai ranks second in FDI Capital and first in FDI Jobs.

Greenfield FDI (wholly owned) and new forms of investment are up 6% in 2022 compared to 2021. The new forms of investment demonstrate the maturity of the Dubai domestic market and the diverse opportunities for non-equity partnerships between joint ventures, strategic alliances, subcontracting, licensing, production sharing franchises and turnkey projects.

The top five sectors – transport and warehousing, hospitality and tourism, renewable energy, software and IT services, and consumer goods – accounted for 76% of Dubai’s total estimated inflows and 68% of announced FDI projects – with the transport and warehousing sector leading the way in accounting for FDI 45% dominant share of capital. The Dubai FDI Monitor data also showed that the top five business functions accounted for 78 percent of Dubai’s estimated total inflows, while accounting for 93 percent of the total number of FDI projects announced in 2022.

By 2022, business services remain a prominent business function based on FDI projects and FDI capital.

Types of Foreign Direct Investment by Project

Compared to 2021, Dubai leads the way in many important indicators as it attracts different types of FDI projects and capital, including greenfield FDI and new forms of investment: mergers, acquisitions, reinvestments, venture capital-backed FDI and greenfield joint ventures world.

Complementing the increase in FDI capital in 2022, the hotel and tourism and software and IT services industries contribute to the growth in the estimated total employment created through FDI.

In 2022, high-tech FDI projects accounted for 63% of the projects recorded in this sector, underscoring Dubai’s position as the destination of choice for high-tech FDI projects and a global hub for professionals in the digital economy.


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