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$9.2 billion total foreign direct investment recorded in UAE

The report, compiled by the ministry of Economy in cooperation with the United Nations Economic and Social Commission for Western Asia (ESCWA), United Nations Conference on Trade and Development (UNCTAD), UAE Central Bank, Abu Dhabi Chamber of Commerce and Industry (ADCCI) and Dubai Investment and Development Authority, was the first of its kind on FDI in the UAE for 2004.

The first documented report, which was prepared on implementation of the federal cabinet's resolution in 2005 to create a data base for foreign investment, surveyed 465 companies across the country.

National manpower in the companies represented 6 per cent against 94 per cent for non-national employees. Male staff dominated the human resources scene in these firms constituting 92 per cent, the report indicated. The report said that total spending of these companies on technology for 2004 reached Dh3.9 million, pumping huge funds of Dh107 million on research and development (R&D).

Figures showed that total exports and sales of commodities and services of the these firms were valued at Dh44.3 billion against imports worth Dh23.8 billion for 2004.

The report noted that European countries topped the list in terms of volume of investment holding 35 per cent and the UK led the European countries with 20 per cent of investment. Second in line were the GCC countries taking 26 per cent while the rest of Arab and African countries registered the smallest amount of FDI. The largest rate of capital, the report observed, were reported in the manufacturing industries and water and power supplies at 29.5 per cent, followed by the retail/whole sale, vehicle maintenance and personal items at 21.7 per cent. The percentage was 19 in mining and energy, 10 in real estate and commercial ventures and 6 in transport and storage. The financial brokerage, construction, and education and health sectors recorded 7,4 and 0.4 per cent respectively. "The prime leverage for investment in the UAE is its strategic location as a gateway to regional and global markets," it affirmed.

On obstacles hindering FDI flow into the UAE, the report singled out complicated administrative formalities, lack of qualified administrators, shortage of skilled workforce, non-availability of land and properties and poor flexibility of the labour market as the foremost barriers.