The emirate achieved 89.5 per cent year-on-year growth in total announced FDI projects last year

Dubai retained its position as the world’s top destination for attracting greenfield foreign direct investment projects in 2022 for the second consecutive year, cementing its position as a worldwide FDI hub despite global economic headwinds, a report has found.

The emirate, the tourism and commercial hub of the Middle East, achieved 89.5 per cent year-on-year growth in FDI projects announced last year, Dubai Media Office said, citing data from the 2022 Financial Times fDi Markets report on Sunday.

Total FDI capital last year also surged 80.3 per cent, consolidating the emirate status as among the top-three global city economies, a key goal of the Dubai Economic Agenda D33.

“Dubai’s ability to secure the No. 1 global ranking for Greenfield FDI projects for the second year in a row demonstrates its ability to sustain its compelling investment value proposition, even at a time when the worldwide economy is facing headwinds,” Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council, said.

“The emirate offers the deep stability, sustainability, infrastructure and opportunity-rich environment needed to ensure the long-term trust of international investors, businesses and entrepreneurs.”

Dubai attracted an estimated Dh47 billion ($12.8 billion) in FDI capital in 2022, almost doubling the Dh26.07 billion recorded in 2021.

An estimated 38,447 jobs were created in Dubai last year through these projects, compared to 24,932 in 2021, the media office said, citing data from Dubai FDI Monitor.

“Over the years, Dubai has forged dynamic partnerships with global investors to accelerate innovation and create enduring economic value,” Sheikh Hamdan said.

“Dubai leads the world in attracting FDI in a wide range of industries, especially future-oriented sectors, a fact that is a testament to the strategic vision articulated in the Dubai Economic Agenda D33.”

Dubai’s economy has bounced back strongly from the pandemic-driven slowdown in 2020. The emirate’s gross domestic product has maintained strong growth momentum since, driven by a strong recovery in travel and tourism, and retail sectors.

The emirate’s economy expanded by 4.6 per cent on an annual basis in the first nine months of 2022, with retail trade accounting for 24.1 per cent of its GDP, according to data from the emirate’s statistics centre.

Emirates NBD estimates Dubai’s full-year growth for 2022 at 5 per cent and expects its GDP to expand by 3.5 per cent this year.

Dubai last year continued to maintain and improve its leadership position across key FDI attractions, while economic momentum continued across sectors of the economy.

The emirate ranked first in attracting FDI projects into tourism, business services, financial services, transport and warehousing, consumer products, and software and IT services sectors, the fDi Markets data showed.

Dubai also emerged as the 2022 world leader in attracting FDI projects in the creative industries cluster, in research and development projects.

Dubai’s share in attracting global Greenfield FDI projects reaches 4 per cent in 2022, a 1.9 per cent increase on an annual basis. It attracted a record 837 projects, achieving the highest growth in global share in the past seven years.

The top five source countries for FDI projects accounted for 54 per cent of the total in 2022, split among the US (20 per cent), the UK (13 per cent), India (12 per cent), France (5 per cent) and Switzerland (4 per cent), the Media Office said.

The top five source countries for FDI capital accounted for 72 per cent of the total estimated flows into the emirate in 2022, split among Canada (41 per cent), the UK (12 per cent), the US (11 per cent), India (4 per cent) and Switzerland (4 per cent).

Transport and warehousing, hotels and tourism, renewable energy, software and IT services, and consumer products were the top sectors.

They accounted for 76 per cent of the total estimated flows into Dubai and 68 per cent of announced FDI projects.

“Dubai’s leading global FDI ranking underpins a comprehensive framework of initiatives that were launched to further strengthen the city’s business and investment environment,” Helal Almarri, director general of the Department of Economy and Tourism, said.

“The growth of the city’s share in global Greenfield FDI projects clearly indicates our strategy’s effectiveness.”

https://www.thenationalnews.com/business/economy/2023/05/14/dubai-retains-position-as-top-global-hub-for-fdi-projects-in-2022/