Dubai experienced a year-on-year increase in attracting global Greenfield FDI capital, reaching in the first half (H1) 2023, AED 20.87 billion (USD 5.68 billion). This is according to a report by Financial Times’ ‘fDi Markets‘ data, a comprehensive online database dedicated to cross-border greenfield investments.
33 HQ projects
Moreover, Dubai holds the top global position in attracting HQ FDI projects, as confirmed by Financial Times Ltd.’s “fDi Markets” data. In H1 2023, Dubai successfully attracted 33 HQ projects, surpassing both London and Singapore. This accomplishment further underscores the emirate’s growing reputation as a prominent global hub for the headquarters of major companies.
Greenfield FDI projects
Dubai continues to secure its position as the leading global destination for attracting Greenfield Foreign Direct Investment (FDI) projects. In H1 2023, the emirate successfully attracted an impressive 511 Greenfield projects. Based on data from Financial Times Ltd.’s “fDi Markets,” Dubai climbed from the eighth position in the firstH1) of 2022 to the sixth position globally in the mentioned period.
Dubai maintains its exceptional global performance as a premier investment destination, surpassing Singapore by an impressive margin of 325 projects. In H1 2023, Dubai’s global share in attracting Greenfield FDI projects reached 6.58 percent, a significant increase from 3.83 percent during the same period last year. These results not only reaffirm Dubai’s standing as a pivotal investment hub but also align with the city’s ambitious 10-year Dubai Economic Agenda D33, which strives to double the size of the emirate’s economy in the next decade.
Unparalleled growth
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, highlighted that Dubai’s ability to maintain its top ranking in attracting Greenfield FDI projects reflects the city’s capacity to generate unparalleled growth opportunities and value for global investors. He noted that under the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the emirate has intensified efforts to accelerate economic diversification and innovation. This commitment, combined with the adoption of advanced technologies, is shaping a future filled with countless opportunities for progress and prosperity. His Highness emphasized that with the clear growth roadmap outlined in the Dubai Economic Agenda D33, ongoing work is focused on creating an investment environment that not only garners the trust of investors worldwide but also encourages their active participation in Dubai’s transformative journey.
880 announced FDI projects
Simultaneously, the latest data unveiled by Dubai FDI Monitor, a division of Dubai’s Department of Economy and Tourism (DET), reveals that the city registered a total of 880 announced FDI projects during the period of January to June this year, marking a significant year-on-year growth of 70 percent. The Dubai FDI Monitor diligently tracks, verifies, and analyzes various types of FDI projects announced within the emirate.
According to data from the Dubai FDI Monitor, Greenfield FDI projects in Dubai make up 65 percent of the total announced FDI projects. Additionally, the report highlights an increase in year-on-year Reinvestment FDIs, rising from 3 percent to 4.4 percent when comparing H1 2023 with the corresponding period in 2022.
Read more: Dubai is once more first globally in attracting FDI projects
Enhancing competitiveness
Helal Saeed Almarri, director general of DET, expressed that they are actively intensifying their efforts to implement the Dubai Economic Agenda D33, which was introduced by His Highness Sheikh Mohammed bin Rashid Al Maktoum.Â
Al Marri acknowledged that the robust growth in announced FDI projects for H1 2023 signifies the effectiveness of Dubai’s progressive policy enablers and diverse attraction programs in resonating with global investors and decision-makers. He further emphasized that these endeavors are aimed at enhancing the city’s competitiveness and business environment on an international scale.
Significant progress
According to data from Financial Times Ltd.’s “fDi Markets,” Dubai has made significant progress in employment creation from FDI projects. The city ascended from the ninth position in H1 2022 to the fourth place globally in H1 2023. This climb is a result of a remarkable 43.3 percent surge in job creation during H1 2023, compared to H1 2022, resulting in a total of 24,236 jobs being generated through FDI.
Aligned with the economic diversification initiatives of Dubai’s DET, the city’s efforts to attract and retain highly skilled talent are exemplified by the top six sectors that contributed to estimated job creation through FDI in H1 2023. These sectors include Business Services, which accounted for 5,212 jobs (with a 21.5 percent share), Software and IT with 3,525 jobs (14.5 percent), Food & Beverages with 3,090 jobs (12.7 percent), Financial Services with 1,813 jobs (7.5 percent), Consumer Products with 2,104 jobs (8.3 percent), and Real Estate with 921 jobs (3.8 percent).
Global hub
As per the Dubai FDI Monitor, Dubai maintained its ability to attract both medium-to-high-technology and low-technology FDI projects in H1 2023, with rates of 63 percent and 37 percent, respectively, remaining unchanged from the previous year. This data highlights the prominent presence of medium-high technology FDI initiatives in Dubai, emphasizing the city’s position as a global hub for advanced FDI projects and a center for specialized talent in the digital economy.
Key sectors
When it comes to the key sectors attracting FDI capital to Dubai, Financial Services leads the pack with 52 percent, followed by Business Services at 12.8 percent, Software & IT Services at 7.5 percent, Real Estate at 6.9 percent, and F&B at 3 percent. The Dubai FDI Monitor data reveals that these top five sectors account for 82 percent of the total FDI capital inflow and 70 percent of the total FDI projects. In terms of FDI projects, the leading sectors are Business Services at 22.4 percent, Software & IT at 17.8 percent, F&B at 12.2 percent, Financial Services at 9 percent, and Consumer Products at 8.3 percent.
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