Here’s a snapshot of Dubai's FDI landscape today:
1. FDI Inflow
The latest official figures from Dubai Investment Authority shows that a total of Dh20 billion in FDI entered Dubai in 2015. Moreover, 279 new FDI projects were set up in 2015, an increase of 16 per cent of the 240 projects in 2014. The projects created more than 14,000 jobs in 2015.
2. Top FDI Sectors
Dubai economy shows steady growth in various sectors. Top industries by number of FDI projects in 2015 were professional services, IT services, transportation, warehousing, finance, and retail.
3. FDI Projects
According to the Dubai FDI report, 71 percent of FDI projects in 2015 qualified as high tech, generating 59 percent of total FDI. Dubai aims to accelerate the transition to a green and sustainable economy. The Emirate attracts smart city technologies, renewable energy and green buildings among other high-tech sectors.
4. Top Investors
Out of a total of 40 source countries, the top source countries for foreign direct investment are the Saudi Arabia, the US, the UK, India, and Kuwait. These top five countries generated a total of AED14.9 billion ($4 billion) of FDI in 2015, representing 76 percent of total FDI for the year.
Official figures showed that the US, the UK, India, Germany and Switzerland were the top source countries for the number of projects in 2015, generating 168 of total FDI projects.
5. The Forecast
The Emirate’s stable landscape for investment, diversified economy, and taxation policies will continue to bring in foreign direct investment in the medium term. Dubai Expo 2020 will also stimulate a major influx of investors and bringing new opportunities to the market. It is predicted that Expo will attract $20 billion investment. Thus, the outlook for Dubai’s economy over the next few years is positive, with infrastructure investment set to continue ahead of Expo 2020. The real GDP growth averaged 4.1 per cent in 2015. The IMF predicts that the government spending will drive a rapid acceleration to more than 5 percent GDP growth by 2020. The Emirate is also diversifying its economy. Diversification is helping overcome the negative impact of lower oil prices. The government aims to stepping up structural reforms aimed at further developing the private sector, transitioning towards a knowledge-driven economy, and promoting export sectors. Dubai will remain one of the most preferred destinations for investors in the medium term.