Declaring that UAE's leading position in FDI attraction cannot be left to chance, the Minister of Economy, Shaikha Lubna Al Qasimi, yesterday said a Foreign Investment Law, which is to be drafted by the Ministry of Economy as per the mandate given by the Cabinet, will seek to regulate incoming foreign investments into the UAE, introduce best practice elements, and provide investors with a "one-stop" legal reference point for foreign investors.

Speaking at the first National Investment Reform Workshop of the UAE, the Minister said with the UAE ranked unfavourably in terms of ease of starting a business and ease of closing a business, "much more needed to be done at the Federal level and in coordination with the different Emirates."

Stressing the need to draft a unified investment law, she said the Ministry of Economy is currently championing the National Investment Reform Agendas (NIRA) initiative alongside the Ministry of Finance and Industry, the Central Bank, Abu Dhabi Investment Authority, Dubai Investment Group, the Securities and Commodities Authority, and other stakeholders.

Shaikha Lubna pointed out that the UAE has made significant strides in FDI performance over the last decade. "We have moved up from the 90th position, worldwide, in the period 1993-1995, to the 15th position in the period 2003- 2005. In a decade, we have achieved the largest FDI figure in the region in terms of magnitude. As a ratio to GDP, we are only preceded by Lebanon."

As one of the lowest taxed countries in the world, with no corporate or income taxes and no sales tax, the UAE has become a  lucrative location for FDI vis-a-vis other regional and international countries. "Foreign companies investing in the UAE can benefit from cost efficiencies, in power, gas and water, that renders.  We have low tariffs, low currency risk, extremely low financial risk, no  restrictions on repatriation of profits or capital, and numerous double taxation  agreements."

Over the past few years, FDI flow into the UAE has been on the rise against the backdrop of an all round economic buoyancy supported by government's progressive and liberal investment policies. Last year saw a remarkable surge in FDI flow to the country with a total of $18.72 billion being invested in 160 projects, according to a leading market research tool for tracking and analysing foreign direct investment projects.

Shaikha Lubna said despite the impressive trends in FDI, there is a need for FDI reform. " In an era of growing emphasis on knowledge economies as the 'underwriter' of prosperity in the long run, and given the employment challenges facing the region as a whole, we are witnessing increasing competition, worldwide, to attract FDI. Regionally, Jordan, Iraq, Tunisia and Morocco have either revised or are revising their investment laws. Egypt created a Ministry of Investment to cater to the growing needs for investment. Other countries have recognised that, in order to meet the dire economic challenges facing the region, economic liberalisation is necessary."