Dubai sees Dh28.6 billion in FDI in 2014

Projects aimed at the regional market captured 84% of the investments in 2014

Dubai: Infrastructure development initiatives and the services industries remained the major drivers of capital into Dubai in 2014 as the emirate witnessed Dh28.6 billion ($7.8 billion) in foreign direct investment (FDI).
The latest estimates by Dubai Investment Development Agency (Dubai FDI), an agency of the emirate’s Department of Economic Development (DED), show that the USA, the UK, India and other European countries such as France and Germany were major source markets.

The UAE’s FDI was valued at $12 billion (Dh44 billion) in 2013.
Dubai FDI said that with clear signs of recovery and iconic projects on board, the real estate sector, financial services, hotels and tourism, alternative/renewable energy, business services, software and IT services were the top sectors together accounting for 78 per cent of investment, or Dh22 billion in 2014. These sectors also claimed 133 projects, half of the total FDI projects in 2014.
“The latest FDI figures once again prove that Dubai remains the preferred and ideal destination for investors and businessmen, who have confidence in the national economy, which is witnessing steady growth in various sectors. Dubai’s hosting of the Expo 2020 has stimulated a major influx of investors and growth opportunities. We welcome all kinds of investments and global companies that are looking for stability and business development in an integrated investment environment,” commented Sami Al Qamzi, Director General of DED.

Growing realisation
“A strategic message we have been sending out to investors worldwide is the importance of being in Dubai to grow and expand. From the top FDI sectors in Dubai and projects of scale, it is evident that there is growing realisation of Dubai’s ability to facilitate business and competitively serve an expanding consumer market spread across the Middle East, North Africa and South Asia,” added Fahad Al Gergawi, Chief Executive Officer of Dubai FDI.
Projects aimed at the regional market captured 84 per cent of the investments in 2014 while the domestic (15 per cent), subregional (1.6 per cent) and global (1.1 per cent) markets followed in that order.
Out of a total of 41 source countries, the top ones — US, UK, India, Netherlands, Germany and Italy — generated a total of Dh23.9 billion throughout the year across 141 projects. In terms of investment, these countries represented almost 84 per cent of the total FDI for the whole year and 59 per cent of the total in terms of the number of projects.