80% investors to hike or maintain Dubai investments

Four in five (81 per cent) of existing investors in Dubai plan to increase or maintain investments in the emirate, according to a survey that forms part of the final report ‘Dubai – The FDI destination of choice’, released by the Foreign Investment Office (FIO), part of the Dubai Economic Department.

The findings are encouraging as overall investor confidence in Dubai fared well, indicating a positive position after times of global turbulence, the FOI said in a statement.

These findings are especially striking when compared to equivalent global figures. When asked about their global investment budgets, 37 per cent of global investors indicated that they plan to decrease their investments. Almost half of the investors who are planning to increase their investments in Dubai plan to reinvest in their current businesses.

“The general rule that the current investor is essential to future investment flows appears to hold true in Dubai. This is especially important in times of global turbulence when many investors seek new opportunities” said Fahad Al Gergawi, CEO of FIO.

The report finds that approximately 29 per cent of the bullish investors plan to enter into new joint ventures with local partners, and 14 per cent plan to acquire equity in local companies in order to grow their presence in the market.

The report highlights a number of industries as more positively inclined than others to invest in.

The industries that have the most attractive profile in Dubai are telecoms and utilities. Dubai is also a top ten choice among executives from the financial services industry, being the sixth most important destination globally for future investments. Non-financial services executives (rep-resenting companies from fields such as transportation, business services, healthcare, legal services and education) ranked Dubai among the global top 20 FDI destinations.

Finally, primary industry investors rank Dubai above the global median while manufacturing industries (both heavy and light manufacturing) are more bearish about Dubai’s prospects ranking Dubai below the global median.

“Considering the solid foundation of FDI attractiveness in Dubai and the reported future prospects, the FIO will continue to consider ways and venues to further support Dubai in cementing its top FDI destination globally,” concluded Al Gergawi.