Dubai sees improved FDI inflow in H1 2012
- United Arab Emirates: Sunday, September 30 - 2012 at 14:30
- PRESS RELEASE
Dubai attracted Dhs16.5bn in foreign direct investment (FDI) during the first six months of 2012, according to statistics compiled by Dubai FDI, the foreign investment office in the emirate's Department of Economic Development (DED).
The first half of the year saw 115 FDI projects being initiated in Dubai by 113 companies. January saw the highest average capital investment while the highest number of projects in a single month - 26 - was recorded in April 2012.
Total FDI that flowed into Dubai during January-June 2012 was 7% up from the first half of 2011. The presence of larger projects is the most notable feature of the FDI inflow during H1 2012.
Overall FDI trends during January-June 2012 reaffirm Dubai's pre-eminence as an investment destination of choice and reflect a growing confidence globally on the growth prospects across key sectors of the emirate's economy.
"More and more firms and investors worldwide are now convinced of the unique growth opportunities Dubai provides as a regional hub and business centre. The rise in number of multinationals relocating to Dubai and in FDI across key industry sectors in the emirate validate this," said Fahad Al Gergawi, Chief Executive Officer of Dubai FDI.
"Dubai FDI is particularly proud to see such positive outcomes achieved by the government of Dubai as our focus is on comprehensively promoting business in Dubai and enabling investors to take advantage of Dubai's competitiveness," added Al Gergawi.
Similar to the first half of 2011, India, USA, UK, Saudi Arabia, Qatar, Germany, Switzerland and France were on top among the source countries for FDI into Dubai in H1 2012 too. The top 10 countries accounted for 83 projects, or 72% of the total, and their combined investment of Dhs15.5bn was 94% of the January-June 2012 FDI into Dubai. The UK and India accounted for 29% of the FDI projects, mainly in business services.
"It is also noteworthy that a new breed of investors is finding Dubai the place to be. Dubai's world-class infrastructure, convenient links to the East as well as West and distinguished lifestyle is especially appealing for this generation of ambitious and innovative entrepreneurs," added Al Gergawi.
Almost 93.9% of the FDI projects initiated in Dubai during January-June 2012 are new investments, compared to 88% in the first half of 2011. Moreover, almost 45% of the projects came from companies that had not previously had a project recorded in Dubai.
Average capital investment in the new projects was Dhs149m, while average capital investment for expansion was Dhs56m.
The sector-wise breakdown of new FDI initiatives shows Real Estate, Leisure and Entertainment; Chemicals; Financial Services; Business Services; Food and Tobacco; Healthcare; Communications; and Metals as leading FDI industries during the first half of 2012. The top ten sectors together attracted 77 projects worth Dhs15bn, representing 67% of the total projects and 93% of the net capital invested.
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