Dubai records 190 FDI deals worth Dh12 billion

Capital flows into Dubai-based startups exceeded Dh739 million in H1 2020. - File photo

Foreign direct investments (FDI) continued to flow into Dubai as the number of announced FDI projects reached 190 in the first half of 2020, attracting an estimated capital of Dh12 billion, reflecting the emirate's strong appeal among foreign investors even during the challenging times of coronavirus pandemic.
Data from the "Dubai FDI Monitor" released by Dubai Investment Development Agency (Dubai FDI) revealed that the emirate attracted foreign investment in strategic sectors such as technology, e-commerce, and pharmaceutical industries.
During the first half of 2019, Dubai had attracted Dh46.6 billion in foreign investments, an increase of 135 per cent over the previous year.
Moreover, capital flows into Dubai-based startups exceeded Dh739 million in H1 2020. The emirate was also placed 7th globally among the top 10 global cities in the rankings of the 'FDI Aerospace Cities of the Future 2020-21' report, and ranked 2nd globally in FDI performance in the sector. Data from 'Dubai FDI Monitor' also showed a 53 per cent increase in medium and high technology investments in H1 2020, compared to the same period last year.
"The sustained FDI flows in H1 2020 reflect the continued attractiveness of Dubai's investment environment, and its success in combating the Covid-19 pandemic and starting the recovery phase in record time. Thanks to the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, Dubai has further enhanced its ability to attract investments into emerging opportunities across strategic and new sectors, and enhanced its pivotal role as a global economic hub," said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.
Data showed that 50 per cent of total announced projects are greenfield FDI projects, followed by new forms of investment (NFI) projects (36 per cent), re-investment projects (8 per cent), mergers and acquisitions (4 per cent), and new joint ventures (2 per cent).
The USA topped the list of source countries in terms of FDI capital flows to Dubai in H1 2020, accounting for 25 per cent of the total, followed by France (18 per cent), Belgium (9 per cent), and UK and China (8 per cent each). These five countries together accounted for 68 per cent of total FDI capital flows to Dubai.
The emirate was ranked third in the number of greenfield FDI projects and fourth in FDI capital flows, according to Financial Times' fDi Markets. The fDi Markets' Global Venture Capital FDI Ranking 2020 report also ranked Dubai first in the Mena region and 11th globally among the top 20 most popular destinations for venture capital investments.
Sami Al Qamzi, director-general of Dubai Economy, said FDI trends in H1 2020 confirmed Dubai's success in creating new investment opportunities despite the challenges posed by the Covid-19 crisis.
He stressed that despite the challenges posed by COVID-19, the first half witnessed positive developments in the investment environment in the UAE and Dubai, driven by stimulus packages to support business continuity and publication of executive regulations of the UAE FDI law.
Fahad Al Gergawi, CEO of Dubai FDI, affirmed that Dubai is currently one of the world's leading global investment destinations in terms of crisis preparedness and resilience, thanks to the policies and measures adopted by the leadership to navigate the challenges posed by Covid-19.
"With the easing of restrictions on movement and travel, we are working closely with investors to facilitate the realisation of announced FDI projects that faced challenges as a result of the Covid-19 crisis," Al Gergawi added.
Anurag Chaturvedi, CEO of Chartered House, said key factors that attract foreign direct investment are modern Infrastructure, lower inflation rate, access to finance and stable government.
"Since Dubai is focused to attract e-commerce, fintech and pharmaceutical entrepreneurs, it shall develop a conducive environment for these sectors to attract more foreign investment. In my opinion, more sectors will be added to 100 per cent ownership model and combination of the above mentioned factors shall increase FDI to Dubai, going forward," said Chaturvedi. - waheedabbas@khaleejtimes.com