Foreign direct investment in Dubai falls 11 percent: Report

Published April 2nd, 2017 - 08:04 GMT
According to the report, Dubai saw nearly 11.5 percent fewer new investment projects last year. (Pixabay)
According to the report, Dubai saw nearly 11.5 percent fewer new investment projects last year. (Pixabay)

Foreign direct investment flows into Dubai fell nearly 11 percent last year as tougher market conditions continued to impact the region.

In its FDI Monitor report, based on Financial Times data, Dubai Investment Development Agency said the emirate attracted Dhs25.5bn ($6.9bn) in foreign investment last year compared to Dhs28.6bn ($7.78bn) in 2015.

The number of new investment projects was also down 11.47 percent, from 279 last year to 247 this year.

Strategic projects accounted for 60 percent of new investment initiatives and 92 percent of foreign direct investment in 2016.

Nearly three quarters (73 percent) of projects were classed as medium and high technology, including 100 start-ups and small enterprises with an annual turnover of less than $20m.

Research and development investment also increased from 1 percent of the total in 2015 to 5 percent in 2016.

The US, UK, India, Germany and Italy accounted for 152 projects, while Canada, the UK, France, Spain and the US were among the leading sources of capital.

Despite the decrease in overall investment, Dubai ranked seventh worldwide in terms of FDI inflows for 2016 and stood third behind London and Singapore for new investment initiatives.

 


© Motivate Publishing. All rights reserved.

You may also like