Dubai expects to attract nearly Dhfour billion in fresh foreign capital this year as investors from other countries pour applications to tap the emirate’s rebounding potential, an official was reported on Wednesday as saying.

Over the past three months, Dubai recorded a whopping 50 per cent increase in such applications from many European countries, including Germany, Switzerland, Britain and Austria, said Fahd Gargawi, executive director of the investment office at the Dubai Economic Development Department.

He said the applications had been submitted to DED in collaboration with the Geneva-based Cramer Salamian law firm, which has contracted with Dubai to promote business opportunities in the emirate worldwide.

“This sharp rise in investment applications and other enquiries about the business climate here show the emirate is still very attractive for investors and a safe haven for foreign companies,” he told Emirat Alyoum newspaper.

“The increase supports our forecasts that foreign direct investment in Dubai will increase by at least 10 per cent to Dh27 billion at the end of 2011 from Dh23 billion at the end of 2010….the applications cover key sectors such as hydrocarbons, petrochemicals, metals, light commodities and precious stones.”

Gargawi said the surge in investment applications from Europe was not at the expense of demand for investment from other countries.

“It’s just that there was a remarkable increase from applications by European investors…this means that companies in countries which suffer from financial crises appear to be looking for more stable and profitable markets,” he said.

“Their choice of Dubai is because it provides an ideal business environment, it has little taxes and enjoys an advanced services and logistics system that caters for the needs of all socio-economic sectors.”