Dubai has maintained its status as the world’s top foreign direct investment (FDI) hub, maintaining its global top spot in attracting FDI projects in the first half of 2022.
The emirate attracted 492 FDI projects in the first six months of 2022, an increase of 80.2% over the same period in 2021, according to data released by the Department of Economy and Tourism (DET) of Dubai.
Dubai also ranked first globally in attracting greenfield FDI projects during the same period this year, according to the Financial Times’ FDi Markets, its online database of cross-border greenfield investments.
Greenfield projects accounted for 56% of Dubai’s FDI projects during the period, according to the Dubai Investment Development Agency (Dubai FDI), a DET entity, using data from its Dubai FDI Monitor.
Dubai recorded FDI inflows of 13.72 billion Dhs in the first half of 2022, reflecting a growth of 14.6% compared to the same period last year.
FDI investments and projects generated 15,164 new jobs in the first half of 2022, a year-on-year growth of 33.5% compared to the first half of 2021. FDI among Middle Eastern and North African (MENA) countries. .
Underscoring its focus on retaining investment and investor confidence, Dubai ranked fourth globally in reinvestment FDI projects, 10th globally in reinvestment FDI capital inflows and eighth in terms of jobs created by reinvestment projects.
Dubai ranked first globally in attracting greenfield FDI projects in 2021, with 418 greenfield FDI projects, and the latest figures justify its business-friendly initiatives and policies. Investor confidence in the emirate remains high, reflecting its economic stability and bright growth prospects.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, said: “We remain committed to enriching Dubai’s conducive business environment to explore new avenues of growth with our partner investors to achieve even greater success in the years to come. . Further diversifying the economy, attracting more investment in up-and-coming sectors and enhancing growth opportunities in the digital economy will remain our strategic goals for Dubai’s development journey.
While 56% of FDI projects that entered Dubai in the first half of 2022 were greenfield projects, 29% fell into the new forms of investment category, 6% were equity-backed FDI projects. risk, 5% were mergers and acquisitions (mergers and acquisitions), 3% were reinvestments and 1% were joint ventures.
Data from the “Dubai FDI Monitor” also showed that medium and high-tech projects accounted for 62% of total FDI projects in the first half of 2022, while 38% were low-tech investment projects. The focus on technology indicates that Dubai has been successful in attracting global talent and capital in its transition to a digital economy.
Recently, the “Dubai FDI Monitor” received a special mention from the United Nations Economic and Social Council for Asia and the Pacific (UNESCAP) as a global best practice in investment tracking and monitoring.
The United Kingdom (36%), the United States (20%), France (10%), Singapore (5%) and Switzerland (4%) were the main source countries of FDI in Dubai during the first half of 2022. In terms of FDI projects, the top five source markets were the United States (18%), the United Kingdom (15%), India (13%), as well as Singapore and France (4% each).
The five largest sectors in terms of FDI capital inflows to Dubai in the first half of 2022 were specialist contractors (28%), the non-residential building construction sector (12%), accommodation and food services (12%), data processing, hosting and related services (6%) and power generation (4%)
The wholesale and retail sector and the accommodation and catering sector lead with 11% each in number of FDI projects, followed by the sectors of computer systems design and related services, software publishing and administrative and support services, with 7% each.
The emirate ranked first in the world in terms of the number of projects in the creative industry and FDI projects in business services, financial services, transport and warehousing, industrial equipment and sectors sales, marketing and support.
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