The UAE Government’s new foreign direct investment (FDI) law could accelerate FDI flows by up to 20 percent this year, according to the Ministry of Economy.
The landmark law, which is predicted to further strengthen the business-friendly climate in the country, will be discussed at the Annual Investment Meeting 2019 in Dubai next week.
High-level representatives from the country are expected to present the key provisions of the law before a global audience alongside other factors that make the emirate a preferred FDI destination in the Arab region, state news agency WAM reported.
"Attracting international investments is critical to the sustainable development of any country, and in the case of the UAE, to its economic diversification strategy. Higher FDI results in more job opportunities and stronger international ties," said Dawood Al Shezawi, CEO of Annual Investment Organising Committee.
Under the law, a powerful FDI unit will be established within the Ministry of Economy. It will propose FDI policies, identify priorities, formulate relevant programmes, and lead the implementation of the Cabinet-approved proposals.
It will also oversee the establishment of a comprehensive database for UAE investments as well as assist in the registration and licensing of FDI projects.
"As the country prepares for a post-oil future and continues to transition to a knowledge- and innovation-driven economy, the FDI law is going to be an influential factor that will drive the UAE’s socio-economic growth and development in the 21st century," Al Shezawi said.
The International Monetary Fund has estimated that the UAE’s real gross domestic product (GDP) will experience a 3.7 percent increase this year compared with 2.9 percent in 2018. Non-oil GDP is also forecast by the Central Bank of the UAE to expand at 3.4 percent in 2019 compared to 2.6 percent in 2018.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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