The FDI destination of choice" has been released by the Foreign Investment Office (FIO) part of the Dubai Economic Department. The findings are encouraging as overall investor confidence in Dubai fared well, indicating a positive position after times of global turbulence.
Asked about their future plans, 81 percent of investors who have investments in Dubai, mentioned that they plan to maintain or increase investment in the emirate. These findings are especially striking when compared to equivalent global figures. When asked about their global investment budgets, 37 percent of global investors indicated that they plan to decrease their investments. Almost half of the investors who are planning to increase their investments in Dubai plan to reinvest in their current businesses.
"The general rule that the current investor is essential to future investment flows appears to hold true in Dubai. This is especially important in times of global turbulence when many investors seek new opportunities" said Mr. Fahad Al Gergawi, CEO of Foreign Investment Office (FIO).
The report finds that approximately 29 percent of the bullish investors plan to enter into new joint ventures with local partners, and 14 percent plan to acquire equity in local companies in order to grow their presence in the market.
The report highlights a number of industries as more positively inclined than others to invest in. The industries that have the most attractive profile in Dubai are telecoms and utilities. Dubai is also a top ten choice among executives from the financial services industry, being the sixth most important destination globally for future investments. Non-financial services executives (representing companies from fields such as transportation, business services, health care, legal services and education) ranked Dubai among the global top 20 FDI destinations. Finally, primary industry investors rank Dubai above the global median while manufacturing industries (both heavy and light manufacturing) are more bearish about Dubai's prospects ranking Dubai below the global median.
"Considering the solid foundation of FDI attractiveness in Dubai and the reported future prospects, the Foreign Investment Office (FIO) will continue to consider ways and venues to further support Dubai in cementing its top FDI destination globally," concluded Mr. Al Gergawi.