Attracting 492 projects, 56% of which are new, during the first half of 2022

Dubai once again tops the world's cities in attracting foreign direct investment projects

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, with 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 the third place globally in the classification of job creation from foreign direct investment, after creating 15,164 jobs during the first half of 2022, a growth of 33.5% compared to the same period in 2021, according to data from the Financial Times "FDI Markets". 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 

On this occasion, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of the Emirate of Dubai, expressed his appreciation for all the combined efforts to consolidate Dubai's distinguished position as a major destination for investment at the regional and global levels. Its qualitative weight as a partner that enjoys a great deal of 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, deepening the investors’ feeling that it is the most worthy destination for hosting their investments and the most capable of providing 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, may God protect him, Dubai has laid solid foundations for its relationship with foreign investors, the most important of which is mutual trust. The world level, flexible regulatory and legislative frameworks that take into account 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 solidity and strength that enabled them to overcome situations The exceptional circumstances that have 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 on the land of 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, which is 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 fields of the digital economy will remain among the strategic objectives of Dubai’s development process during the next stage.” 

Quick start 

H.E. Helal 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 World Expo 2020, the return of global tourism, and the activities of conferences, meetings, exhibitions and various incentives, in addition to a set of special legislation and policies. With visas, Dubai demonstrates sustainable resilience in the context of international economic and supply chain challenges.

He added: "Through a clear and stable roadmap that looks to the future, driven by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, the emirate is working to accelerate its pace of development to achieve the goals of the 50 Principles, foremost of which is the establishment of the economy. The best and most dynamic in the region and the world over the next fifty years.Our achievements in attracting investment confirm our commitment to working to enhance Dubai’s leading position, raise its economic and tourism competitiveness, expand international trade horizons, and keep pace with future developments, which in turn contributes to consolidating the strategic vision of the wise leadership in making Dubai is the best city in the world to live and work.

Types of 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 new forms of investment projects, 6% for foreign direct investment projects from venture capital, and 5% for projects Mergers and acquisitions, 3% for reinvestment projects, and 1% for joint ventures.

The data of the Dubai Investment Monitor revealed that medium and high-tech investment projects acquired 62% of the total foreign direct investment projects in the first half of 2022, and 38% of low-tech investment projects, which is in line with the department’s directions to provide all support to the structural transformation process it is witnessing. The Emirate of Dubai is transforming into a diversified and innovative digital economy that aims to attract specialized global talent and capital.

It should be noted that the Dubai Investment Monitor has recently received international recognition as a global best practice in tracking and monitoring investments, by the United Nations Economic and Social Commission for Asia and the Pacific.

The most prominent source countries and sectors that attract investments

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 2022, according to the data of the "Dubai Investment Monitor", were as follows: the United Kingdom 36%, the United States 20%, France 10%, Singapore 5%, 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%, 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.

global supremacy 

The data of the Financial Times "FDI Markets" 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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