Dubai retains top spot in attracting new FDI projects
For the second time in a row, Dubai held its position as the top destination globally for attracting Greenfield foreign direct investment projects last year, strengthening its position as a top Global Centre for FDI projects despite ripples in the global economy, a report has found.
Quoting data from the 2022 Financial Times fDi markets report, Dubai Media House said the emirate achieved a whopping 89.5% year-on-year growth in FDI projects revealed last year.
Total FDI capital also received a massive boost, surging 80.3%, consolidating Dubai’s status as among the top-three global city economies – a noteworthy aim of Dubai Economic Agenda D33.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council, highlighted Dubai’s “ability to sustain its compelling investment value proposition”, adding the emirate offers the opportunity-rich environment, sustainability, deep stability, and infrastructure required to ensure the long-term trust of international businesses, investors and entrepreneurs.
Citing information from Dubai FDI Monitor, the media office said these projects helped create an estimated 38,447 jobs in Dubai last year, compared to 24,932 in 2021.
Dubai’s economy has seen a strong revival from the coronavirus-triggered slowdown in 2020. Its GDP has been maintaining strong growth momentum since, driven by a significant recovery in retail and, travel and tourism sectors.
According to data from the emirate’s statistics centre, Dubai’s economy expanded by 4.6% on an annual basis in the first nine months of last year, with retail trade accounting for 24.1% of its GDP. Dubai’s GDP is expected to expand by 3.5% this year.
Last year, the emirate’s share in luring global Greenfield FDI projects reached 4%, representing a 1.9% increase on an annual basis. It attracted 837 projects, seeing the highest growth in the global share in the last seven years.
According to the media office, the top five source countries for these projects accounted for 54% of the total last year, involving the US, the UK, India, France, and Switzerland. The top five source countries for FDI capital represented 72% of the total estimated flows into Dubai in 2022, involving Canada, the UK, the US, India, and Switzerland.
Hotels and tourism, software and IT services, transport and warehousing, consumer products, and renewable energy were counted among the top sectors. They represented 68% of the total announced FDI projects and 76% of the total estimated flows into the emirate.