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DMCC seeks to lure new wave of US firms

DMCC accounts for 15%of all foreign direct investment in Dubai

Published: Sun 25 Aug 2024, 4:36 PM

By
Issac John

DMCC is home to more than 45 per cent US businesses in the UAE. — FIle photo

DMCC, a leading free zone and Government of Dubai authority on commodities trade and enterprise, seeks to attract a new wave of American companies to its Dubai business district to reinforce its position as home to more than 45 per cent US businesses in the UAE.

DMCC said it is looking to uphold the UAE’s status as home to the largest US foreign direct investment stock in the Middle East.

Aimed at broadening the UAE-US trade and investment across key economic sectors, the free zone, recently briefed American businesses on Dubai’s unique, business-friendly environment, world-class infrastructure and myriad opportunities on offer for American entrepreneurs in Dubai during its second Made for Trade Live roadshow of the US this year. A DMCC delegation has visited the cities of San Francisco, California, and Denver, Colorado.

The free zone, home to over 24,000 businesses from around the globe, has nearly 700 US companies, making the district home to over 45 per cent of the estimated 1,500 American businesses in the UAE. With bilateral non-oil trade reaching an all-time high of $ 31.4 billion in 2023, DMCC sees significant opportunities for American businesses looking to establish their regional presence and scale up operations from Dubai.

“Dubai has been the longstanding hub of choice for American companies in the region for many years. The record levels of trade and investment we saw last year is a testament to this, and to the continued attractiveness of Dubai for US companies in terms of our market size, infrastructure, trade connectivity, and ease of doing business,” said Ahmed bin Sulayem, executive chairman and chief executive officer, DMCC.

“With almost 700 US companies in our district, we represent almost half of the American business presence in the UAE – a position we will aim to consolidate in the future as we expand our business ecosystems and tap into the huge potential of sectors such as tech, AI, energy and more,” said Sulayem.

DMCC accounts for 15 per cent of all foreign direct investment in Dubai, up from 11 per cent last year, and 7.0 per cent of the emirate’s GDP estimated at Dh430 billion in 2023.

According to UN Trade & Development, global FDI flows in 2023, at an estimated $1.37 trillion, showed an increase of 3.0 per cent over 2022. Yet, excluding a few large European deals, global FDI flows were 18 per cent lower. In line with global FDI flows, Dubai attracted an estimated Dh39.26 in total FDI capital during 2023.

Ranking 19th globally for FDI attractiveness, the UAE is an advantageous location for American companies due to its business-friendly environment and its diversified economy (with 66 per cent of the country’s economic activity coming from non-oil sectors, according to the IMF). A series of bold new reforms, including allowing 100 per cent foreign ownership and long-term visa, has opened up new opportunities to international companies, especially in the technology and manufacturing space.

The UAE remained the top US export destination in the Middle East and Africa for the fifth consecutive year in 2023. US exports to the UAE reached $24.8 billion in 2023, exceeding 2022 exports of $20.8 billion, by 19 per cent. US exports to the UAE support 125,000 jobs in the US, while UAE exports to the US totaled $6.6 billion in 2023.