Dubai brings in $4.3bn in FDI in first nine months of last year

The 2021 figure represented a “significant increase” over the same period in 2020 when FDI slowed because of the Covid-19 pandemic, according to data from the ‘Dubai FDI Monitor’ released by Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economy and Tourism (DET) in Dubai. Dubai has sought to increase FDI as it looks to diversify its economy.

“Dubai has continued to introduce and implement initiatives that improve business confidence. Global investors have placed their faith in Dubai’s business ecosystem, making it among the most attractive FDI locations in the world. Initiatives such as full foreign ownership, an evolving visa administration, and the alignment of the work week with global markets demonstrate Dubai and the UAE’s responsiveness to business needs,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.

FDI reinvestment projects accounted for 11 percent of the total FDI projects in the emirate. FDI job creation witnessed a huge growth of 36 percent during the first nine months of 2021 compared to the same period last year, as 16,430 new jobs were created compared to 12,090 jobs in the same period prior to last year.

The total number of FDI projects increased by 16 percent, from 326 in the first nine months of 2020 to 378 in the same period of 2021. As much as 58 percent of the inbound FDI is in strategic sectors and 52 percent is in greenfield projects, or projects developed on a vacant site. High and medium technology investments comprise 64 percent of inbound FDI capital, with an increase of 2 percent over the same period in the previous year.

The UK led FDI investment, followed by France and Dubai. The US, Saudi Arabia and India also made the list for capturing the highest percentage of FDI investment, according to the ranking by Financial Times’ fDi Markets, which captures and compares FDI data across the world.