UAE is world’s 11th FDI destination

The UAE ranking has improved among the world’s top countries for foreign direct investment (FDI), becoming 11th most attractive destination for FDI in 2014 mainly due to local firms increasing their foreign ownership quotas of late.

According to global consultancy AT Kearney, the UAE was the only country from the Middle East and Africa to be ranked among the top 25 countries.

It was ranked 14th in the world for most attractive for FDI in 2013.

The key factor that contributed to the upward ranking was the UAE firms increasing their foreign ownership ceilings prior to MSCI upgrade of the UAE from frontier to emerging markets.

The emirates has also been ranked in the top 10 countries for positive outlook. In the survey conducted by AT Kearney, 39 per cent of respondents rated the UAE outlook more positive compared to 2012 and ranked it 6th worldwide for the most positive outlook.

“The UAE reclaims its position from 2010 after a minor dip in the rankings in 2012 and 2013. It reported a $9.6 billion inflow of FDI in 2012, up from $7.7bn the year before. Following of the opening of new areas for foreign investment, several large Emirati companies are lifting the total value of equity that may be held by foreign investors,” AT Kearney said.

A number of UAE companies including Dubai Investments, Deyaar, Union Properties, Mashreq and others have announced lifting of foreign ownership ceiling.

AT Kearney said FDI in hospitality business is expected to increase as Dubai prepares to host the 2020 World Expo. The total investment needed for the event is $8.8bn, including plans to double the number of hotel rooms in Dubai.

Global FDI destinations

The US topped the index for the second consecutive year, demonstrating sustained investor confidence in the strength of its ongoing economic recovery. After the US, other top 10 countries are China, Canada, UK, Brazil, Germany, India Australia, Singapore and France.

Around 49 per cent of respondents indicated that their outlook for the US is significantly more positive now than it was two years ago.

Survey respondents include C-level executives and regional and business heads. The 300 participating companies represent 26 countries and span all industry sectors. All companies report global revenue of more than $1bn. The survey was conducted in January and February 2014.

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