The United Arab Emirates Ministry of Economy and Planning recently launched a massive project to compile a database on all foreign direct investment (FDI) in the UAE, while the UAE Central Bank has expressed the need to implement legislation to regulate foreign investment in the country.
An official ministry statement said that "The project is the first of its kind in the UAE and its aim is to establish a database on FDI in the country. The goal of the project is to implement appropriate laws and legislations to attract more FDI."
GCC members Saudi Arabia, Bahrain, Oman and Kuwait have similar FDI programs.
A team of workers from key government departments has been established to work on the project, which will enable authorities to track where such investment is most attractive to investors and to what degree, according to <i>Gulf News</i>.
The project is the result of what is thought to be the lack of information regarding such foreign investment, including its source, size and ultimate destination.
Executive Director of the Banking Supervision and Examination Department of the UAE Central Bank, Saeed Abdullah Al Hamiz, said it was natural to cooperate in implementing a defined policy regarding foreign direct investment in the UAE. He also encouraged the issuance of an investment law.
He added that the UAE is likely to attract considerable FDI, mainly due to its political and economic stability, tax-free market and freedom to transfer funds.
He pointed out, however, the importance of distinguishing between FDI in the form of industrial, agricultural, services and tourism projects and those such as bonds or shares, usually referred to as portfolio investments, which can be easily transferred abroad.
