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UAE 2nd largest FDI recipient country in Mena

UAE Business

Cumulative foreign direct investment (FDI) to the UAE jumped to $117.9 billion by the end of 2016 from $109 billion by the end of 2015, marking a growth of 8.2 per cent and making it the second largest recipient of FDI in Mena.

The FDI inflow was supported by increasing investments in areas of transformational and other heavy industries, according to recent reports.

According to the 2017 Global Investment Report published by the United Nation’s Council on Trade and Development (UNCTAD), the UAE is the 11th largest FDI recipient in Asia. Its main investors are the UK, Japan and Hong Kong. After having declined in 2009, FDI inflows recovered. In 2016, the UAE attracted $8.9 billion (a 1.7 per cent increase on 2015), with the political and economic stability of the country attracting investors. The bulk of FDI is concentrated in the sectors of retail/wholesale trading, real-estates, insurance and manufacturing industry.

Annual Investment Meeting (AIM), the most prominent regional event enticing foreign direct investments, will take place at the Dubai World Trade Centre from April 9-11, 2018.

AIM is an initiative of the UAE Ministry of Economy, held under the patronage of Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. The annual gathering of investors and government policy-makers will discuss issues relating to investment and development.

With a theme – linking developed and emerging markets through FDI: Partnerships for inclusive growth and sustainable development – AIM is expected to draw more than 20,000 investors, delegates and trade visitors across the three-day event.

“Foreign Direct Investment can be used as a vehicle to achieve sustainable economic growth. In the UAE, we are continuously working to adopt policies and structures that will ultimately provide us with the right environment to not only be able to attract FDI, but also to retain its positive effects and desired spillovers,” Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said in a statement to announce the 8th edition of the AIM Congress.

“It is now widely understood that sustainable development is not necessarily a consequence of FDI. In fact, FDI can have negative consequences on sustainable development, if the right policies and frameworks are not laid out accordingly.”

World Bank released its annual Doing Business Report 2018 that showed the UAE jumped to 21st rank out of 190 countries, advancing five positions from 26th in the 2017 Doing Business Report.

“We are embarking on a brand new era, one where consciousness reigns supreme. Today, most of us are conscious of the fact that we are all part of a larger ecosystem, one that relies heavily on the prosperity of other organisms within our ecosystem,” Al Mansouri said.

“With the theme Linking Developed and Emerging Markets: Partnerships for Inclusive Growth and Sustainable Development, the 8th edition of the Annual Investment Meeting will be dedicated to discovering how such partnerships between developed and emerging markets can be utilised to strengthen our shared goals, through responsible FDI, as we work to create solutions for today’s problems, while ensuring that future generations have the ability to live in a thriving and socially and economically responsible world, abundant with resources and opportunities for all.”

The UAE represents a lure for attracting foreign direct investment for many reasons, some of which are; the readiness and efficiency of the infrastructure and the developed efficient land, sea and air transportation, which has contributed to its success in establishing thirty-one general and specialized free trade zones.

The AIM is an international conference and exhibition promoting cross-border investment flow to achieve sustainable global economic growth – participated by government ministers, senior government officials, investment promotion agencies, government bodies, chambers of commerce and industries, business councils, business groups, private sector organisations, investors, banks and financial institutes and other stakeholders.

The AIM Exhibition 2018 will feature in its three-day event all the different industry projects and services catered for the investment growth of various participating regions. This will focus on promoting FDIs and effective ways to attract investors to various economy sectors.

Since its inception in 2011, AIM has brought together tens of thousands of exhibitors and visitors to network, promote projects and attract investment in the various participating countries. The exhibition gives opportunities for governments and private organisations to launch and promote their projects to a vastly diverse audience. In 2017, AIM attracted more than 19,000 visitors and participation of 535 exhibitors from 141 participating countries.

This included countries such as China, Egypt, India, Morocco, Nigeria, Russia, Saudi Arabia, Ukraine, UK and USA to name a few who chose AIM 2017 as the platform through which to promote the investment opportunities in their countries and regions.- TradeArabia News Service

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