FDI to account for 5% of UAE's GDP in five years

Dubai - Open policies and economic diversification help enhance business environment, say experts at the Annual Investment Meeting

Open economic policies helped enhance the UAE's attractiveness to foreign direct investment (FDI), said Sultan bin Saeed Al Mansouri, UAE Minister of Economy, in his welcome speech at the sixth edition of the Annual Investment Meeting (AIM) in Dubai on Monday.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, inaugurated the AIM, the theme for which is 'The New World of FDI, Key Features and Best Practices'.
"The Ministry of Economy aims to increase the contribution of FDI to five per cent of the country's gross domestic product over the next five years. This is in line with the goals of the National Agenda of the UAE Vision 2021," Al Mansouri said.
The UAE is the second largest FDI recipient in the West Asia region, according to the 2015 UNCTAD World Investment Report. Increased FDI pushed the UAE to No 1 rank regionally and 22nd globally in the World Investment Report 2015.
In terms of FDI projects in 2015, the UAE maintained its dominance in attracting the highest FDI within the GCC.
"... adapting open economic policies, sound and strategic plans pursued by the government on economic diversification have contributed to the development of various sectors and enhanced the attractiveness of the UAE's business environment to record levels," Al Mansouri said.
The minister added: "Our country has succeeded in just four decades to reduce dependence on oil to 30 per cent of GDP, making economic diversification a headline, and confirmed that oil is important. However, it will not exceed the contribution of more than 20 per cent of GDP by the year 2021. Our strategy at the moment is to build a knowledge-based economy, driven by industrial sectors such as transportation, renewable energy, space and information technology."
He said: "The AIM's theme stems from the realisation that FDI is only one form of investment. Companies increasingly choose from multiple market strategies, ranging from exports, franchise, joint ventures, strategic alliances or partnerships, sub-contracting or outsourcing ..."
He welcomed the IORA ministers and heads of delegations. "The UAE is honoured to host the second Indian Ocean Rim Association ministerial economic business conference on April 12 and 13 in Dubai under the theme 'SMEs and Innovation: Investing in Sustainable Future'.
"The Annual Investment Meeting has become a unique platform to promote investment and foster partnerships in public and private sectors," he said.
The welcome address was followed by the launch of the AIM annual FDI report which revealed the latest trends in FDI flows globally and regionally, with frontier and emerging markets in particular. A special focus was given to the competitiveness of fast growth markets and key opportunities and challenges they have to face.
- abdulbasit@khaleejtimes.com