[ad_1]
Is Dubai heading for another economic boom? The answer from industry and financial experts is yes. Their insights are based on the latest Dubai FDI Monitor data, which ranks Dubai first in the Arab world and third in global FDI attractiveness.
“Dubai is now one of the most attractive FDI locations in the world. Global investors have confidence in our business ecosystem,” said HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council.
Experts agree with Dubai’s political leadership, which has been presiding over a series of reforms to boost economic growth. Interestingly, Dubai attracted $4.3 billion in FDI capital inflows from 371 projects in the first nine months of 2021, a significant increase from the previous year.
“At a time when the world is still recovering from a pandemic-induced economic slowdown, attracting $4.3 billion in foreign direct investment is a very reassuring thing,” said Rakesh Menon, a former global senior vice president at JPMorgan Chase & Co.
In fact, Menon spent considerable time in Dubai as a senior banking professional with Standard Chartered and Citibank before moving to London. According to him, Dubai is shaping itself as a wealthy European country.
“This is not the old Dubai anymore. The new Dubai is about AI, blockchain, crypto, startups, fintech and other emerging technologies. I see a trend of the US and Europe moving their blockchain platforms to Dubai ,” Menon noted, taking cues from the FDI source countries published by the Dubai FDI Monitor.
The United Kingdom (UK) received 29% of inflows into Dubai, followed by France (19%), the United States (14%), Saudi Arabia (6%) and India (4%). Together, these five countries accounted for 72% of Dubai’s total capital inflows.
In terms of FDI projects, the UK ranks in the top 20%, followed by the US (19%), India (11%), France (6%) and Germany (5%). According to Menon, the figures suggest that Dubai is able to sustain Western interest, which is key to future events.
“Then you also need to consider Dubai’s strategic location, which helps it control 70 to 75 percent of global GDP. So I can say with confidence that Dubai is now riding the next wave of economic prosperity that has just begun,” Menon added.
HE Helal Saeed Al Marri, Director-General of the Ministry of Economy and Tourism, HE Helal Saeed Al Marri, attributed the latest FDI trends to the emirate’s future policies, the creation of new investment avenues and continued improvements in the area of ease of doing business.
Krishnakumar Varma, founder of Finage Consulting Pvt Ltd, agrees and praises the infrastructure Dubai has created over the years. “Their infrastructure is simply unparalleled. Recent reforms, such as 100% ownership, have also further fueled Dubai’s growth,” Varma elaborates.
Varma is a senior banking professional who has worked in Dubai for over 30 years and has worked for leading banks such as Emirates NBD, First Abu Dhabi Bank, NBQ, Doha Bank and HSBC, and believes that long-term investment in Dubai leads to the world The birthing infrastructure of a first-class bank is finally paying off.
What Varma said was reflected in the Dubai FDI Monitor data, which confirmed that as much as 58% of inbound FDI took place in strategic sectors, compared to 52% in greenfield projects. The total number of FDI projects increased to 378, an increase of 16%, compared to 326 in 2020.
Menon and Varma agree that Dubai will soon become a global hub for emerging technologies, as the emirate is eager to increase revenue from non-oil sources. Indeed, Saudi Arabia is stepping up its competition. “But it won’t be easy for them to catch up to Dubai,” Menon added.
Meanwhile, Dubai FDI CEO Fahad Al Gergawi attributed Dubai’s FDI performance to an innovative strategy and a global approach. Encouraged by the inflow of foreign direct investment, Al Gergawi is optimistic that the emirate will continue to attract global businesses. “New momentum has just begun,” he concluded.
Disclaimer: This article is part of the Dubai Business Featured Content series
[ad_2]
Source link