*By Mohammad Ali Rashed Lootah
Foreign direct investment (FDI) projects are fundamental for the economic ambitions of Dubai. These cross-border investments fuel growth through capital accumulation, create valuable jobs, boost productivity, and equip us with emerging technologies.
Dubai is regarded worldwide as an ideal place for FDI projects, and thriving companies are here now supporting local talents and attracting new workers to the emirate. Here at Dubai Chambers, we are harnessing this success to ensure further FDI projects and promote a dynamic investment environment across Dubai.
The global FDI landscape
Over the past few years, the global FDI landscape has been strongly impacted by the uncertainty of the markets and the fragmentation of global trade. Geopolitical disruptions and high food and energy prices have made supporting FDI a real challenge for many countries. These challenges, that have been felt more acutely in developing countries, can only be tackled through concerted and collaborative efforts of the global community.
Despite the global challenges, Dubai has emerged as a global leader in FDI. In 2023, Dubai’s financial market reached its highest peak in eight years, and the resilience of the economy of the emirate has been truly attractive for international investors. The strategic location of Dubai – close to the leading trade routes – favorable tax incentives and strong economic policies have also made the emirate attractive for FDI inflows and economic growth.
Dubai’s success in FDI
A central objetive of Dubai Chambers is retaining and increasing FDI in the emirate. We have made great progress in recent years, with Dubai posting a 80% increase in the FDI inflow in 2021-22.
We are also extremely proud to see Dubai named as a global leading destination to attract greenfield projects (one that lacks constraints imposed by prior work) in FDI in the most recent edition of the Financial Times’ “fDi Markets”. The numbers show that the emirate has attracted 511 greenfield projects in the first half of 2023. The data also underlines that the global share of Dubai to attract FDI greenfield projects ramped up to 6.58% during the first half of 2023 compared 3.83% in the same period of 2022.
The most recent FDI data released by Dubai’s Department of Economy and Tourism (DET) have also confirmed an extremely healthy growth. The figures show that the city of Dubai announced 880 FDI projects from January to June 2023, up 70% year on year.
By ensuring that Dubai retains its status as a major FDI hub, we’re supporting Dubai’s 10-year economic plan known as D33 that aims to double the size of the economy of the emirate over the next decade. A healthy FDI ecosystem within the emirate encourages the economic diversification and fosters innovation. It also leads to a significant job creation: FDI projects are estimated to have created 5,2121 jobs in corporate services, 3,525 jobs in IT and software, and 3,090 jobs in food and beverage in the first half of 2023 only.
About Brazil and Dubai
Dubai Chambers reports that Brazil is the leading partner in Latin America. The economic changes Brazil has experienced in recent years provide business opportunities to international companies interested in navigating this complex but rich market that benefits from a wealth of natural resources, lands to explore sustainably, and a large population that’s open to new cultures, products and services.
With the government of Brazil putting a strong emphasis on trade and investments as tools to boost economic growth, a wide range of opportunities have opened for global companies aiming to expand into the region. The Dubai Business Forum served as a platform to explore mutually beneficial partnerships, showcase high-potential industries in the Brazilian market, and boost high levels of trade and investments.
Dubai and the United Arab Emirates are a major business gateway for Brazilian companies that seek to expand into the Middle East, Asia and Africa. Sectors with high potential for investments include agribusiness, logistics, infrastructure, and sustainable energy, as well as emerging industries like fintechs, agritechs, and healthtechs.
*Mohammad Ali Rashed Lootah is the president and CEO of Dubai Chambers
The authors are solely responsible for the opinions of the article.
Translated by Guilherme Miranda
