Global and regional investors’ confidence in Dubai as a destination for foreign direct investments (FDI) and as the FDI hub for the wider Middle East and North African (MENA) region has grown, according to preliminary results of a survey.
Conducted by the Foreign Investment Office (FIO), an agency of the Department of Economic Development (DED), the survey reveals that more than 70 per cent of global and regional investors have investments in Dubai or plan to invest within the next three years.
The survey was conducted among more than 1,000 global and regional investors.
The preliminary findings identified that 54 per cent of the participants already have a presence in Dubai and an additional 16 per cent of global and regional investors plan to enter Dubai in the next three years. Most of these global companies look to Dubai as an essential part of their total value chain to access the attractive markets of the Mena region, maintaining their most vital and strategic activities in Dubai.
The broader Mena region has an expanding labour force and growing consumer market of around 1.7 billion individuals. It is characterised by a young and vibrant population where the majority of the population is below 25 years of age.
The International Monetary Fund (IMF) predicts that the region will post a gross domestic product (GDP) growth rate of 5.5 per cent - all factors that make the MENA region attractive for foreign investors.
The past decade has brought dramatic growth in FDI flows into the Middle East. FDI in the Gulf Cooperation Council (GCC) region has grown from $3 billion in 2000 to $62 billion in 2008, according to the United Nations Conference on Trade and Development (UNCTAD).
Total inflow to the UAE was $21 billion in 2008, according to FDI Intelligence - an indication of investor confidence.
Emirates Business
