The recent release of the 2010 A.T. Kearney FDI Confidence Index report ranked UAE as the 11th global FDI destination. Dubai was ranked as the preferred destination of choice in the MENA region for future Foreign Direct Investment (FDI) serving as a major gateway for fortune 1000 global investors.
Fahad Al Gergawi, CEO of Foreign Investment Office part of the Dubai Department of Economic Development, believes that the results will support the emirate to maintain and eventually improve Dubai's FDI status, thus supporting the overall UAE economy. "We are pleased to see the confidence investors have in Dubai. It is now up to us to seal our position as the FDI destination of choice for future investments in the MENA region, and fulfil our obligations to maintain and grow current and future investors”.
Foreign investors look towards Dubai and the UAE now as an established, more advanced market as it has the experience, the infrastructure and the dynamic business environment. To a great extent, Dubai is facing similar challenges to many developed economies which is a sign of economic maturity. However, this presents a new set of policy challenges for Dubai to support ongoing strategic investments.
The rise of foreign investment in Dubai has been meteoric and its sheer momentum has played a large role in the economic well-being of the emirate. According to the FT Intelligence Report, in 2008, Dubai’s FDI contributed US$21 billion (AED77.3 billion) to the GDP, hence positioning Dubai as one of the most attractive markets for investment. Further to the report, FDI magazine stated that Dubai was also ranked first in the classification of the ‘future cities for investments in the MENA region’. There are still challenges to be met, but with the strength of existing businesses, and the commitment to develop the emirate further, Dubai aims to attract even more FDI in the years to come.
“We have plans to further increase investors’ confidence that Dubai offers the right environment for any business to establish itself or expand. We will make every possible effort to leverage the enormous advantages the city of Dubai offers. Moving forward, FIO will continue to develop policies and legislation that enhances the competitiveness of Dubai and promote the interests of investors,” added Al Gergawi.
The Dubai Foreign Investment Office (FIO) has the responsibility of attracting and facilitating foreign investment into Dubai and has commissioned an in-depth special survey and research report on how to achieve added competitiveness by developing and changing foreign investment policy. The report is expected in September 2010.