UAE FDI flow surges 21%

FDI flow into the UAE is estimated to have surged 21 per cent to $9 billion in 2012 from $7.6 billion in the previous year.

In 2012, Dubai drew a bulk of the FDI inflow by recording Dh16.5 billion in the first half, an increase of seven per cent compared to the same 2011 period.

According to estimates by investment experts, Dubai would have sustained the same trend in the second half of 2012 to post FDI receipts exceeding Dh27 billion.

FDI flow into the six-nation GCC, which controls over 40 per cent of the world’s recoverable crude deposits, stood at around $27.9 billion in 2012 compared with about $24.5 billion in 2011, an increase of 13.8 per cent, according to the Kuwaiti-based Gulf Investment Corporation. The UAE and Saudi Arabia are expected to have attracted more than half those investments, mainly from the West and Asia.

Dawood Al Shezawi, Fahad Al Gergawi, Abdullah Ahmed Al Saleh, Sultan bin Saeed Al Mansouri and Khalifa Al Daboos at the press conference of Annual Investment Meeting 2013 in Dubai on Wednesday. — KT photo by Juidin Bernarrd

Inter-Arab Investment Guarantee Corporation data shows that the UAE attracted more than $75 billion in FDI between 2000 and 2010 to emerge as the second largest foreign capital destination in the Arab world after Saudi Arabia. According to experts, the cumulative FDI flow into the UAE would cross $100 billion in 2013.

Al Mansouri said that trade, logistics and services sectors would continue to drive UAE’s growth.

“The UAE has succeeded in cementing its leading position in the international investment map, as it expands its investments in infrastructure, renewable energy, industry and agriculture,” he said.

Announcing the third Annual Investment Meeting, or AIM, which is to run from April 30 to May 2 in Dubai, Al Mansouri said at a Press conference that his ministry has succeeded in boosting UAE’s openness to international markets through several activities and strategic projects that helped open up new channels of cooperation with other countries.

Also present at the Press conference were Khalifa Al Daboos, Deputy CEO of Investment Corporation of Dubai; Fahad Al Gergawi, CEO of Dubai FDI Office at Dubai’s Department of Economic Development; and Dawood Al Shezawi, CEO of Strategic Marketing and Exhibition, the organiser of the AIM.

The AIM is held under the theme of “A Future International Economic Landscape in the making, implications on FDI Growth in Frontier and Emerging Countries.”

The minister said the AIM is milestone in the revitalisation of FDI across the world, impacting positively on the global economy.

The minister predicted that the UAE would continue its solid economic growth in 2013 despite international crisis and slow recovery in developed nations.

Khalifa Al Daboos said hosting the AIM would position Dubai as a leader in initiating activities aimed at achieving recovery in the world economy given that the FDI flows are very critical in this process as the world faces successive financial crisis.

Al Daboos said the ICD is very keen in participating in the AIM to review promising investment projects in world markets, given its mandate to generate higher return on investments “in a way that will benefit the regional financial community.”

He noted that the timing of the event was very important to rally support for UAE’s bid to host Expo 2020 in Dubai. “If Dubai wins the bid, it would offer new channels of investments as 25 million visitors are expected to visit the event that runs for six months.”

Fahad Al Gergawi described Dubai as a favorite destination for investors and regional and international companies that are looking to expand its business in Middle East.

“Given the full recovery of Dubai economy and increasing investment opportunities, the emirate is set to welcome more investments and companies in the wake of the political unrest taking place in several Arab countries and the global financial crisis as the UAE enjoys political stability and security while experiencing rapid economic growth,” said Al Gergawi.

He said attracting foreign investment is a priority for Dubai Government as per its long term strategies that aim at turning Dubai into one of the most competitive business centers by 2015.

He said the AIM is expected to attract a record participation from 84 countries, including 42 ministers and 5,000 investors from all over the world.

Dawood Al Shezawi said organisers are putting the final touches for the third edition of the AIM.

He said the event would introduce a Tripartite High-Level Meeting which will bring together relevant parties from the trade and investment community including senior officials, CEOs, representatives of multilateral agencies and experts from leading research centers.

— issacjohn@khaleejtimes.com