Hamdan bin Mohammed: 492 projects chose Dubai as a partner in the first half of 2022

Dubai leads the world in attracting foreign direct investment projects

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The Emirate of Dubai has maintained its distinguished global performance in attracting foreign direct investment projects, after it succeeded in attracting 492 projects during the first six months of 2022, which is the emirate's highest performance for a six-month period at all, and a growth of 80.2% compared to the same period in 2021, according to The latest data issued by the Department of Economy and Tourism in Dubai.

The emirate ranked first in the world among the list of the most attractive cities for new foreign direct investment projects, during the same period, according to data from "FDI Markets", the most comprehensive database on new foreign investments around the world.

New projects accounted for 56% of the total foreign direct investment projects that Dubai attracted during the mentioned period, according to a report by the "Dubai Investment Monitor", issued by the Dubai Investment Development Corporation, one of the institutions of the Department of Economy and Tourism in Dubai.

The value of capital flows of foreign direct investment projects in Dubai amounted to 13.72 billion dirhams (3.73 billion US dollars) during the first half of this year, achieving a growth of 14.6% compared to the same period last year.

The emirate continued to maintain its regional lead and climb to third place globally in the classification of job creation from foreign direct investment, after creating 15,164 jobs during the first half of this year, with a growth of 33.5% compared to the same period in 2021, according to the data of the "Financial Times - FD". iMarkets.

Dubai also maintained its leadership in employment related to foreign direct investment among the countries of the Middle East and North Africa.

Emphasizing the renewed confidence of investors, Dubai ranked fourth globally in the classification of reinvestment projects, in terms of the number of projects, and tenth globally in terms of capital flows, and eighth in terms of creating related jobs.

safety and stability

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, expressed his appreciation for all the concerted efforts among them to consolidate the distinguished position that Dubai enjoys as a major destination for investment at the regional and global levels, and to confirm its qualitative weight as a partner with a large balance of investments. Confidence in the global investment and financial circles, despite the rapid changes that the region and the world have experienced over the past period, thanks to the elements Dubai provides of safety and stability, deepened the investors’ feeling that it is the most worthy destination to host their investments and best able to provide opportunities for growth and prosperity.

His Highness said: "With the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Dubai has laid solid foundations for its relationship with foreign investors, the most important of which is mutual trust. Flexible regulatory and legislative frameworks that take into account the common interests with all investors, whether individuals or institutions, and an environment that supports innovation, research and development and attracts distinguished professional talents and competencies from around the world. Together, these factors give our partnerships with investors more consolidation and strength that enabled them to overcome the exceptional situations that It has swept the world over the past few years, with performance indicators continuing their strong rise, which heralds more opportunities for growth and prosperity during the next phase of various investment activities in Dubai.We are committed to providing all the capabilities to our partners in various investment sectors to create more success stories together.”

His Highness added: "There is no doubt that medium and high-tech investment projects acquired 62% of the total foreign direct investment projects attracted to Dubai in the first half of this year, as evidence that we are moving in the right direction, in achieving the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, towards consolidating Dubai’s position as the global capital of the digital economy, and an important player in the global digital system.

Diversifying sources of income, attracting future investments, and expanding in the areas of the digital economy will remain among the strategic objectives of Dubai’s development process during the next phase.”

His Highness said in a tweet on Twitter yesterday: "With the vision and directives of His Highness Sheikh Mohammed bin Rashid, Dubai is the first in the world to attract foreign direct investment projects.

492 projects chose Dubai as a partner in the first half of 2022, in a new vote of confidence in a safe and stable business environment, flexible legislative frameworks, highly efficient infrastructure and great ambition for the future.

His Highness added: "Our strong partnerships with the global investor community are growing, with a firm commitment to providing all possibilities for growth, taking into account the investor's interest and ensuring the highest levels of protection for his business, in order to achieve more joint successes with which Dubai's position as a major investment destination in the region and the world is consolidated."

Quick start

Hilal Saeed Al Marri, Director-General of the Department of Economy and Tourism in Dubai, said: “This year has seen a rapid start, reinforced by the success achieved by the emirate’s hosting of the global event (Expo 2020), the return of global tourism, and the activities of conferences, meetings, exhibitions and various incentives, in addition to a set of legislation and policies. visa requirements, and Dubai’s demonstration of sustainable resilience in the context of international economic and supply chain challenges.”

foreign investment

The positive growth of foreign direct investment places the Emirate of Dubai in an advanced rank in the world, among the main measures, including attracting foreign direct investment projects and capital of all kinds, whether new, reinvestment projects, mergers and acquisitions, and new forms of investment.

Dubai Investment Monitor data show that the proportion of new foreign direct investment projects amounted to 56% of the total number of projects in 2022, while the rest of the projects were distributed by 29% for projects of new forms of investment, 6% for foreign direct investment projects from venture capital, and 5% For mergers and acquisitions projects, 3% for reinvestment projects, and 1% for joint ventures.

The data revealed that medium and high-tech investment projects accounted for 62% of the total foreign direct investment projects in the first half of 2022, and 38% for low-tech investment projects, which is in line with the department's directions to provide all support for the structural transformation process in the Emirate of Dubai to A diversified and innovative digital economy aimed at attracting specialized global talent and capital.

Investment Attractive Sectors

With regard to source countries, the five most prominent countries in foreign direct investment capital flows to the Emirate of Dubai in the first half of this year, according to the data of the Dubai Investment Monitor, are as follows: the United Kingdom 36%, the United States 20%, France 10%, Singapore 5%, and Switzerland 4%.

The ranking of the top five countries in terms of FDI project flows to Dubai was as follows: the United States 18%, the United Kingdom 15%, India 13%, Singapore and France 4% each.

The classification of the five most prominent sectors in terms of foreign direct investment capital flows to the Emirate of Dubai in the first half, according to the data of the "Dubai Investment Monitor", revealed that the "specialized commercial contractors" sector topped the list with 28%, followed by the non-residential building construction sector 12%, the sector Housing and food services 12%, data processing, hosting and related services sector 6%, and electric power generation 4%.

In terms of the number of foreign direct investment projects in the same period, the wholesale and retail trade sector, housing and food services sector topped the list with 11% each, followed by the computer systems design and related services sectors, software publishing, and administrative and support services, with 7% each.

• 13.72 billion dirhams, the value of capital flows of foreign direct investment projects in Dubai in the first half.

• New projects accounted for 56% of the total foreign direct investment projects that Dubai has attracted.

Dubai Crown Prince:

• «With the vision and directives of Mohammed bin Rashid, Dubai has laid solid foundations for its relationship with foreign investors, the most important of which is mutual trust».

• «We are committed to providing all the capabilities to our partners to create more success stories together».

• “Medium and high-tech projects have acquired 62% of the total foreign investment, evidence that we are moving in the right direction.”

global supremacy

The Financial Times - FDI Markets data showed the success of the Emirate of Dubai in achieving global leadership in many sub-sectors of foreign direct investment, as the emirate ranked first in the world in terms of the number of projects of creative industries activities, as well as the number of foreign investment projects. In each of the sectors: business services, financial services, transportation and warehousing, industrial equipment, sales, marketing and support.

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