Globally, UAE places second in attracting the highest foreign direct investment (FDI)
The United Arab Emirates (UAE) continues to attract foreign direct investments (FDI) at an impressive rate, according to the latest FDI Performance Index report, cited by the state news agency Wam. The report states that the UAE was followed by Namibia and Costa Rica in the global rankings, making it the second most preferred destination for FDI worldwide.
Last year, the UAE received Dh167 billion ($45.5 billion) in foreign direct investments, more than 14 times the volume one might expect given the size of its economy. This strong performance earned the Emirates the title of the world's top FDI performer last year relative to the size of its economy.
The UAE's success in attracting FDI can be attributed to a multi-faceted approach that includes large-scale infrastructure development, sectoral diversification aligned with innovation and sustainability, free zone incentives, investor-friendly laws, and strategic international positioning backed by global partnerships.
One of the key initiatives is the NextGen FDI programme, launched in 2021. This programme aims to speed up licensing, improve banking services, increase the issuance of bulk or golden visas, and offer commercial and residential lease incentives for technology companies. The UAE has also introduced 100% foreign ownership of companies and reduced visa restrictions to make it easier for foreign investors to do business in the country.
The UAE's commitment to FDI is evident in its ambitious goal to increase foreign direct investments to Dh1.3 trillion by 2031. To achieve this, the UAE is pursuing a series of Comprehensive Economic Partnership Agreement (Cepa) deals, such as the recently launched agreements with Israel and India. These deals aim to reduce tariffs and remove trade bottlenecks in priority areas.
The report by FDI Intelligence also states that investor confidence in the UAE's business hub remained strong last year, reflecting the country's commitment to stability and growth. As the UAE continues to implement initiatives and agreements to boost FDI, it is poised to maintain its position as a global leader in attracting and retaining foreign direct investments.
[1] Gulf News, "UAE's FDI push: A multi-faceted approach", link
[2] Khaleej Times, "UAE ranked second globally for FDI", link
[3] Zawya, "UAE's FDI Performance Index: What does it mean?", link
[4] Arabian Business, "Microsoft to open global engineering development center in Abu Dhabi", link
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