Information, stability are key to attracting FDI

Marwan bin Jassim Al Sarkal, CEO of Shurooq, said that factors which are considered important by investors include stability, information, and regulations.

When it comes to attracting foreign direct investment into a country, investors look for stability, information, and returns, experts at the Sharjah FDI Forum 2017 said on Tuesday.
Held under the patronage of His Highness Dr. Sheikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, the third edition of the Sharjah FDI Forum brings together experts to talk about the Fourth Industrial Revolution, and how foreign direct investment (FDI) is necessary for the growth of a nation's economy.
Speaking on FDI inflows into Sharjah, Marwan bin Jassim Al Sarkal, CEO of Shurooq, said that factors which are considered important by investors include stability, information, and regulations.
"Information is the key to attracting investments from one place to another," he said. "However, the support of the government is vital. In the late 70s, the leadership of Sharjah looked at how the emirate could stand out to investors, and 20 years down the line it became apparent that Sharjah was the industrial center of the region, creating jobs and attracting talent."
In 2016, the UAE was able to attract 29 per cent of global investment inflows from the Middle East. FDI inflows into Sharjah in 2017 may grow by 15 per cent, increasing the total value of FDI into the emirate by Dh1 billion.
"What foreign investors want, based on our experience, is stability, long-term visibility and safety, to ensure that their investment in a country will be profitable and safe in the long term," said Phillippe Yvergniaux, executive director of International Cooperation Business France.
Deepak C. Khanna, CEO, International Finance Corporation, added that investors also look for sustainable profit margins, especially when they are looking at overseas investments.
Speaking on the role that the UAE government has played in ensuring steady investment inflows, Al Sarkal said: "The UAE has developed a great legal system that protects the interests of investors; the freezones have also aided in this mission. The key for the future is to push startups, cater to innovation, and continue to attract interested parties to the region."
"We are prepared to see greater foreign activity when it comes to long-term projects in the UAE, especially those in the energy and transportation segments," he added. "However, while there is an advantage in opening up the market to foreign investments, we should have regulations that ensure that it is not done at the expense of local companies."
- rohma@khaleejtimes.com