Dubai emerged as the number one destination for foreign direct investments (FDI) globally in 2021, as global economies gradually recuperate from the impact COVID-19, a new report showed.
The UAE emirate saw an 87 percent increase in FDI projects last year at 441, compared to 2020’s figure at 236 projects, according to British business intelligence firm Investment Monitor.
The Dubai FDI growth happens on the back of a wider recovery in global FDI projects, which data showed surging 18 percent in 2021.
“Global greenfield foreign direct investment (FDI) levels returned to pre-Covid-19 pandemic levels after a sharp decline in 2020, with the number of FDI projects growing by 18% in 2021. Our FDI Projects Database recorded 16,516 projects for the year,” Glenn Barklie, the firm’s chief economist, said.
London came second on the list with a 23 percent year-on-year increase, followed by other economic hubs, including Singapore, Sydney, and Dublin.
Barklie said widespread Covid-19 vaccinations helped these hubs to quickly recover from the pandemic. The UAE, in particular, was one of the first countries to reopen its borders after a global shutdown in March 2020.
India and China, the report showed, were the only two emerging economies that topped the list of the FDI destination countries 2021.
India’s increase was due to an inflow of investments in the software and IT services sector while China’s increase was driven by electronics, chemical sectors and tourism.
Globally, software and IT services sector took the lion’s share of FDI projects in 2021, followed by business and professional services. The communications and media registered the highest growth – at 98 percent – although only taking the third biggest share.
The US was the highest source of FDI that year, raking in 3,815 outbound projects, or a 27 percent increase from 2020. It is followed by the UK at 1,643 projects. Germany, France, and Switzerland were also in the top five FDI sources.
Most FDI projects came from US e-commerce giant Amazon, staging 241 deals – an increase of 55 percent.
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