Dubai received Dhs13.72bn in FDI during the first half of 2022, an increase of 14.6% compared to last year.
Dubai maintained its position as the world’s leading foreign direct investment (FDI) hub during the first half of 2022, ranking first internationally for luring FDI projects.
According to figures issued by Dubai’s Department of Economy and Tourism, the emirate attracted 492 FDI projects in the first half of 2022, representing an increase of 80.2% compared to the same time in 2021. (DET).
FDI Markets, an online database of cross-border greenfield investments, Dubai placed top internationally in luring greenfield FDI projects during the same period this year.
Greenfield developments accounted for 56% of Dubai’s FDI projects throughout the time, according to the Dubai Investment Development Agency (Dubai FDI). This DET-affiliated organization analyzed data from its Dubai FDI Monitor.
Dubai received Dhs13.72bn in FDI during the first half of 2022, an increase of 14.6% compared to the previous year.
FDI investments and projects generated 15,164 new jobs in the first half of 2022, a 33.5% increase over the first half of 2021. Dubai also maintained its top position in FDI-related employment among Middle Eastern and North African nations (MENA).
Dubai ranks fourth internationally in terms of reinvestment FDI projects, tenth globally in terms of reinvestment FDI capital inflows, and eighth globally in terms of the number of jobs produced by reinvestment projects.
Dubai ranked #1 worldwide in luring greenfield FDI projects in 2021, with 418 greenfield FDI projects, and the most recent statistics validate its business-friendly measures and regulations. The emirate continues to have a high level of investor trust, reflecting its economic stability and promising growth potential.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, stated, “We remain committed to enhancing Dubai’s conducive business environment to explore new growth avenues with our investor partners and achieve even greater success in the coming years.” Our strategic objectives for Dubai’s development journey will remain to diversify the economy more, attract more investment in future-focused sectors, and expand growth prospects in the digital economy.
56% of the FDI projects that entered Dubai in the first half of 2022 were greenfield projects, 29% were new forms of investment, 6% were venture capital-backed FDI projects, 5% were mergers and acquisition (M&A) projects, 3% were reinvestment projects, and 1% were joint ventures.
The “Dubai FDI Monitor” also revealed that medium and high-tech projects accounted for 62% of all FDI projects in the first half of 2022, while low-tech investment projects accounted for 38%. The emphasis on technology demonstrates Dubai’s success in drawing global talent and finance as it transitions towards a digital economy.
The United Nations Economic and Social Council for Asia and the Pacific (UNESCAP) recently recognized the “Dubai FDI Monitor” as the finest global practice for tracking and monitoring investments.
The United Kingdom (36%), the United States (20%), France (10%), Singapore (5%), and Switzerland (4%) were the leading source nations for FDI capital in Dubai during the first half of 2022. Regarding FDI projects, the top five source markets were the United States (18%), the United Kingdom (15%), India (13%), and Singapore and France (4 percent each).
In terms of FDI capital inflows to Dubai in the first half of 2022, the five most prominent sectors were specialty trade contractors (28%), non-residential building construction (12%), accommodation and food services (12%), data processing, hosting and related services (6%) and electric power generation (6%). (4 percent)
In terms of the number of FDI projects, the wholesale and retail trade sector and the lodging and food services sector led the list with 11% each, followed by the computer systems design and related services sector, software publication, and administrative and support services with 7% each.
The emirate ranked first in the number of creative industry projects and foreign direct investment projects in the business services, financial services, transportation and warehousing, industrial equipment, and sales, marketing, and support sectors.