Dubai maintains top global ranking for attracting Greenfield FDI projects in H1 2023

Emirate attracts inflow of Dh20.87 billion between January and June this year

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Published: Sun 8 Oct 2023, 6:06 PM

Dubai remains the top global destination for attracting Greenfield Foreign Direct Investment (FDI) projects, with the emirate attracting 511 greenfield projects in H1 2023, as per Financial Times ‘fDi Markets’ data.

During the first half of 2023, Dubai’s global share in the attraction of greenfield FDI projects stood at 6.58 per cent — up from 3.83 per cent over the same six-month period last year. The results, which underscore the emirate’s status as a key investment hub, aligns directly with the city’s 10-year Dubai Economic Agenda D33, which aims to double the size of the emirate’s economy over the next decade.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said: “Dubai’s ability to maintain its top ranking in attracting greenfield FDI projects reflects the city’s ability to create unparalleled growth opportunities and value for global investors. Guided by the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the emirate has intensified its drive to accelerate economic diversification and innovation. This commitment, coupled with the adoption of advanced technologies, is shaping a future filled with endless opportunities for progress and prosperity. With the clear growth roadmap set out by the Dubai Economic Agenda D33, we continue to work to create an investment environment that not only wins the trust of investors from all over the world but also encourages them to contribute to Dubai’s transformation.”

In parallel, new data released by Dubai FDI Monitor at Dubai’s Department of Economy and Tourism (DET), shows the city logged a total of 880 announced FDI projects between January and June of this year, a year-on-year growth of 70 per cent. The Dubai FDI Monitor tracks, substantiates and analyses all types of FDI projects announced within the emirate.

Dubai FDI Monitor data also indicates that Dubai’s greenfield FDI projects account for 65 per cent of total announced FDI projects. The report also states year-on-year reinvestment FDIs increased from 3 per cent to 4.4 per cent when comparing H1 2023 with the same period in 2022.

Dubai also saw a year-on-year rise in global greenfield FDI capital attraction, reaching Dh20.87 billion. According to Financial Times’ fDi Markets data, Dubai climbed from eighth in H1 2022 to sixth globally in H1 2023.

Additionally, Dubai ranks first globally in the attraction of HQ FDI projects, according to the data, by attracting 33 HQ projects in the first half of this year, ahead of London and Singapore.

Helal Saeed Almarri, Director General of Dubai’s Department of Economy and Tourism, commented: “We are continuing to accelerate efforts to deliver the Dubai Economic Agenda D33. As we work to enhance the city’s competitiveness and business environment internationally, these strong increases in announced FDI projects for H1 2023 drive home how our progressive policy enablers and diverse attraction programmes are resonating with global investors and decision makers alike.”

The data also shows Dubai rose from ninth in H1 2022 to fourth place globally in H1 2023 in employment creation from FDI projects. The climb follows a 43.3 per cent surge in job creation in H1 2023 compared to H1 2022, equating to a total of 24,236 jobs created through FDI.

In line with DET’s economic diversification initiatives, Dubai’s efforts to retain and attract highly skilled talent were illustrated in the top six sectors contributing to estimated job creation by FDI in H1 2023: Business services at 5,212 jobs (21.5 per cent share), software and IT at 3,525 jobs (14.5 per cent), food and beverages at 3,090 jobs (12.7 per cent), financial services at 1,813 jobs (7.5 per cent), consumer products at 2,104 jobs (8.3 per cent) and real estate at 921 jobs (3.8 per cent).

Dubai FDI Monitor states the emirate continued to attract medium-to-high-technology and low-technology FDI projects in H1 2023, with rates of 63 per cent and 37 per cent, respectively, unchanged from last year. The data illustrates the prevalence of medium-high technology FDI ventures in Dubai, underscoring the city’s status as a global hub for cutting-edge FDI projects and a nexus for specialised talent in the digital economy.

In terms of key sectors bringing FDI capital into Dubai, financial services (52 per cent), business services (12.8 per cent), software and IT services (7.5 per cent), real estate (6.9 per cent) and F&B (3 per cent) lead the way. The Dubai FDI Monitor showed the top five sectors accounted for 82 per cent of total FDI capital inflow and 70 per cent of total FDI projects. Leading sectors by FDI projects include business services (22.4 per cent), software and IT (17.8 per cent), F&B (12.2 per cent), financial services (9 per cent) and consumer products (8.3 per cent).