Dubai attracts Dhs46.6b in FDIs during H1 2019

The Emirate of Dubai has witnessed exceptional growth during the first half of 2019, with foreign direct investments, FDIs, reaching a record-breaking Dhs46.6 billion, Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, announced on Sunday.

This new record represents a growth of 135 percent compared to the same period last year, His Highness added, noting that this FDI growth within the emirate is “a testament to global confidence in Dubai’s economy.”

During the first half of 2019, Dubai has continued to progress in global rankings of the most attractive cities for FDI, ranking third in the world in attracting FDI, in terms of both capital flows and the number of greenfield projects.

“Dubai is among the top three global FDI locations thanks to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, who created a global investment environment in Dubai that keeps pace with the aspirations of investors, entrepreneurs and technology shifts in the region and the world,” Sheikh Hamdan bin Mohammed continued..

The FDI flows and rankings results were revealed by Dubai Investment Development Agency, DUBAI FDI, an agency of Dubai Economy, based on the Financial Times’ fDi Markets, a global online platform that monitors data on capital flows and greenfield FDI projects around the world and the ‘Dubai FDI Monitor’ data.

Sheikh Hamdan pointed out that Dubai has been particularly successful in attracting advanced technology and specialised talent in the first half of 2019. “This is a proud achievement for Dubai. With the growth of talent and technology, Dubai will accelerate its drive to become the smartest and most sustainable city of the future.”

According to ‘Dubai FDI Monitor’ data, FDI projects with High and Medium Technology component reached 47 percent of total FDI projects in the first half of 2019, based on the Organisation for Economic Cooperation and Development, OECD, classification criteria.

Moreover, FDI projects with a high and medium technology component were at the forefront of creating new jobs with a 48 percent share of the 24,294 new jobs created by FDI projects in the first half of 2019.  

Sheikh Hamdan noted that according to the Financial Times’ fDi Markets data, the emirate ranking ninth globally in job creation through FDI. “This achievement will further strengthen Dubai’s position as one of the most attractive destinations for promising talent, thanks to our leadership’s initiatives to develop legislative frameworks that enhance the role of talent in building a knowledge and innovation economy in Dubai and the UAE,” he concluded.

Meanwhile, Dubai will play host to the Solar Asset Management MENA Conference, the biggest gathering of solar industry stakeholders which will take place on 17-18 November.

A massive $15bn worth of solar projects are expected to be operational in the next five years in the Middle East while the current solar power market in MENA is estimated to be worth more than $20 billion, according to the Middle East Solar Industry Association, MESIA, in a projection ahead of conference. It has forecast a further growth, saying that the region sees shrinking cost of solar coupled with a surge in clean energy demand.

The MENA region is expected to require 267 GW of additional power generation capacity by the year 2030, representing a jump of 66 percent, which has led to the region turning its gaze to renewables, solar in particular, to meet its needs. Situated on the global sunbelt and with irradiation levels rising above 6 kWh/m2, the MENA region is well-equipped with all the necessities to become an oasis of solar energy production.

Desert-proofing solar operations in the region will be of paramount concert for solar project stakeholders, and will be among the key topics that will be discussed during the conference.

WAM