WAM -- The UAE Government’s new foreign direct investment, FDI, law passed in 2018 could accelerate FDI flows by up to 20 percent this year, from the eight percent average growth rate, as per the recent estimates of the Ministry of Economy.
The landmark law is predicted to further strengthen the already business-friendly climate in the country.
The law is going to take a prominent spot in the upcoming global FDI discussions at the Annual Investment Meeting 2019 in Dubai happening from 8th to 10th April, 2019. High-level representatives from the country are expected to present the key provisions of the law before a global audience alongside other factors that make the Emirate a preferred FDI destination in the Arab region.
"Attracting international investments is critical to the sustainable development of any country, and in the case of the UAE, to its economic diversification strategy. Higher FDI results in more job opportunities and stronger international ties and can lead to the faster realisation of the objectives of both UAE Vision 2021 and UN Sustainable Development Goals 2030," Dawood Al Shezawi, CEO of Annual Investment Organising Committee, said.
Under the law, a powerful FDI unit will be established within the Ministry of Economy. It will propose FDI policies, identify priorities, formulate relevant programmes, and lead the implementation of the Cabinet-approved proposals. It will also oversee the establishment of a comprehensive database for UAE investments as well as assist in the registration and licensing of FDI projects, to name a few.
"As the country prepares for a post-oil future and continues to transition to a knowledge- and innovation-driven economy, the FDI law is going to be an influential factor that will drive the UAE’s socio-economic growth and development in the 21st century," Al Shezawi said.
The outlook on the UAE’s development remains upbeat. The International Monetary Fund has estimated that the country’s real gross domestic product, GDP, will experience a 3.7 percent increase this year compared with 2.9 percent in 2018. Non-oil GDP is also forecasted by the Central Bank of the UAE to expand at 3.4 percent in 2019 compared to 2.6 percent in 2018.
"At this year’s AIM, we are bringing the discussions deeper by looking into the impact of next-generation technologies such as Robotics, Artificial Intelligence, and Blockchain on investment and global trade. As such, the event’s theme, ‘Mapping the Future of FDI: Enriching World Economies through Digital Globalisation,’ will help direct our dialogues towards the adoption of a new way of thinking amidst these digital explosions. The enactment of the new FDI law comes at a time when disruptive technologies are being implemented left and right," he said in conclusion.