His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, said that the significant growth in foreign direct investment (FDI) into Dubai is a testament to global confidence in Dubai's economy. “Dubai is among the top three global FDI locations thanks to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which created a global investment environment in Dubai that keeps pace with the aspirations of investors, entrepreneurs and technology shifts in the region and the world,” he added.
HH Sheikh Hamdan announced that Dubai has recorded exceptional growth during the first half of 2019, with FDI projects worth a record AED 46.6 billion in that period, a growth of 135% compared to the same period last year. During the first half of 2019, Dubai has continued to progress in global rankings of the most attractive cities for FDI, ranking third in the world in attracting FDI, in terms of both capital flows and the number of greenfield projects. The FDI flows and rankings results were revealed by Dubai Investment Development Agency (DUBAI FDI), an agency of Dubai Economy-Government of Dubai, based on the Financial Times’ fDi Markets, the world’s leading online platform that monitors data on capital flows and greenfield FDI projects around the world and the ‘Dubai FDI Monitor’ data.
HH Sheikh Hamdan pointed out that Dubai has been particularly successful in attracting advanced technology and specialised talent in the first half of 2019. “This is a proud achievement for Dubai. With the growth of talent and technology, Dubai will accelerate its drive to become the smartest and most sustainable city of the future,” he added. According to ‘Dubai FDI Monitor’ data, FDI projects with High and Medium Technology component reached 47% of total FDI projects in the first half of 2019, based on the Organisation for Economic Co-operation and Development (OECD) classification criteria. Moreover, FDI projects with High and Medium Technology component were at the forefront of creating new jobs with a 48% share of the 24,294 new jobs created by FDI projects in the first half of 2019. HH Sheikh Hamdan pointed out that Dubai ranked ninth globally in job creation through FDI, according to the Financial Times’ fDi Markets data. “This achievement will further strengthen Dubai’s position as one of the most attractive destinations for promising talent, thanks to our leadership’s initiatives to develop legislative frameworks that enhance the role of talent in building a knowledge and innovation economy in Dubai and the UAE,” he concluded.
Sami Al Qamzi, Director General of Dubai Economy, stated that Dubai has maintained a leading position among top global cities in FDI attraction over the past five years, which reflects what Dubai offers in terms of diverse investment opportunities in key economic sectors. “The FDI results of the first half of 2019 is a testament to the Dubai economy’s competitiveness and resilience in the face of global shifts and challenges that have adversely affected the flows of FDI globally in recent years,” he added. Al Qamzi further stressed that that Dubai’s rise in global FDI rankings confirms the growing confidence of the global investment community in Dubai’s investment environment, under the guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai and the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, which has played a key role in enhancing Dubai’s FDI readiness and attractiveness to become the preferred location for global business and startups’ growth and expansion,” he added.
Al Qamzi pointed out that the growth of FDI flows into Dubai comes at a time when there have been many positive developments in the UAE’s investment environment. “A new FDI Law, numerous economic incentives and concerted efforts to deepen cooperation and partnerships with the private sector have all contributed to Dubai’s record FDI achievements,” said Al Qamzi. “Dubai is classified as a Major City in international rankings for top FDI locations, ranking third in overall rankings and second in economic potential in the latest “Global Cities of the Future 2018-2019", report by the Financial Times’ fDi Benchmark study, thanks to Dubai’s strategic initiatives across key economic sectors, which offer current and future opportunities for the investor community,” he concluded.
Fahad Al Gergawi, Chief Executive Officer of DUBAI FDI, reiterated that the record FDI results achieved by Dubai in the first half of 2019 are in line with expectations, thanks to Dubai’s leadership, which has led to remarkable 2018 results, the highest in 10 Years. Al-Gergawi pointed out that FDI projects are characterised by directing capital, technology and talent to productive and operational capacity, which reflects Dubai’s investor readiness and promising investment opportunities. “Dubai supports global business and startup growth and expansion, making it a gateway to regional and global markets, and a global hub for talent, innovation and entrepreneurship,” he added.
Al Gergawi revealed that based on “Dubai FDI Monitor” data analysis, Dubai’s diverse economy has been particularly successful in creating new investment opportunities in terms of strategic investment projects that reflect global business growth and expansion in Dubai. “Dubai has attracted 257 FDI projects in the first half of 2019. 61% of total projects were greenfield, followed by 27% new forms of investments (NFIs), 6% reinvestment, 5% mergers and acquisitions (M&As), and 1% for new joint ventures, with Strategic FDI projects accounting for 62% of total FDI capital flows to Dubai in the first half of 2019,” said Al Gergawi. As for FDI source countries, according to “Dubai FDI Monitor” data, in the first half of 2019, the United States continues to lead FDI capital flows to Dubai by 34%, while China has risen to the second position with 28%, followed by the UK with 11%, France with 5% and Singapore with 5%. The five countries together accounted for 83% of total FDI capital flows to Dubai in the first half of 2019.
Al Gergawi highlighted that notable FDI deals were recorded in Dubai during the first half of 2019 including the Uber acquisition of Careem, Mastercard International investment in Network International. The emirate saw capital flows worth AED 13 billion during the year. Major FDI projects announced during this period included the “Zhejiang China Commodities Group” investment in the new ‘Merchant Market’ joint venture and “China Co-Op Group” investment in the construction of a new food processing plant in Dubai. Both projects amount to AED 12.5 billion in greenfield FDI. Moreover, “Dubai FDI Monitor” data indicates to increased corporate reinvestments in Dubai, such as the new HSBC Middle East Headquarters project with an estimated value of AED 918 million, Siemens’ new Solar Hydrogen Facility with an estimated value of AED 248 million, the BMW Training Centre project with an estimated value of AED 29 million, along with large construction investments like the W Palm Hotel by Marriott that carries an estimated value of AED 745 million.“ Full data and analysis of FDI flows into Dubai including capital, project profiles and global rankings are available on www.DubaiFDImonitor.ae, a smart service by Dubai FDI that provides access to the latest FDI data to investors around the clock,” said Al Gergawi.
Al Gergawi pointed out that FDI inflows to Dubai will help shed light on the trends that shape the future growth of investment flows to Dubai as part of the ‘Dubai Investment Week’ programme held under the patronage of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council. The week-long programme of events will showcase how Dubai has transformed the challenges of future cities into opportunities for growth, partnership and innovation through a rich agenda that includes four strategic forums. These include the ‘FDI Readiness Forum’, a capacity-building forum dedicated to investment promotion professionals; the ‘Impact FDI Forum,’ to be held in partnership with the Dubai Future Foundation; the ‘FDI Policy Forum,’ to be held in partnership with Mohammed bin Rashid School of Government, as well as sector focused investment opportunity forums organised in partnership with the Dubai Health Authority (DHA) and Dubai Multi Commodities Centre (DMCC).
‘Dubai Investment Week’ will be held from September 29 to October 3, 2019 under the theme “Investing in the City of the Future”. The opening Ceremony of the event, which will be held on Monday 30 September at Jumeirah Emirates Towers, will feature international keynotes, dialogue between leaders and the Impact FDI Awards ceremony.