Dubai achieves $7.8 billion FDI in 2014
Dubai attracted nearly Dh29 billion, or $7.8 billion, foreign direct investment (FDI) in 2014 mainly in infrastructure development initiatives and the services industries.
Estimates by the Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development (DED), showed that the USA, the UK, India and other European countries such as France and Germany were major source markets.
With clear signs of recovery and iconic projects on board, the real estate sector, financial services, hotels and tourism, alternative/renewable energy, business services, software and IT services were the top sectors accounting for 78 per cent of investment, or Dh22 billion, in 2014. These sectors also claimed 133 projects, half of the total FDI projects in 2014.
“The latest FDI figures once again prove that Dubai remains the preferred and ideal destination for investors and businessmen, who have confidence in the national economy, which is witnessing steady growth in various sectors. Dubai hosting Expo 2020 has stimulated a major influx of investors and growth opportunities. We welcome all kinds of investments and global companies that are looking for stability and business development in an integrated investment environment,” said Sami Al Qamzi, Director General of the DED.
Fahad Al Gergawi, CEO of Dubai FDI, said: “A strategic message we have been sending out to investors worldwide is the importance of being in Dubai to grow and expand. From the top FDI sectors in Dubai and projects of scale, it is evident that there is growing realisation of Dubai’s ability to facilitate business and competitively serve an expanding consumer market spread across the Middle East, North Africa and South Asia.”
Projects aimed at the regional market captured 84 per cent of the investments in 2014 while the domestic (15 per cent), sub-regional (1.6 per cent) and global (1.1 per cent) markets followed in that order.
With more and more businesses establishing their international and regional hubs in Dubai, setting up headquarters was one of the top five business activities. Sales, marketing and support, business services, logistics, distribution and transportation and manufacturing were the others leading in a total of 10 activities in terms of the number of projects attracted.
Out of a total of 41 source countries, the top ones — US, UK, India, Netherlands, Germany and Italy — generated a total of Dh23.9 billion throughout the year across 141 projects. In terms of investment, these countries represented almost 84 per cent of the total FDI for the whole year and 59 per cent of the total in terms of the number of projects.
Khaleej Times, 29th March 2015