São Paulo – The enactment of a law on foreign direct investment (FDI) in 2018 in the UAE is expected to lead to an increase in inflows in 2019. Investment is expected to climb by as much as 20% this year, up from an average of 8%, as per the UAE Ministry of Economy. The numbers were made public this Friday (5) by the organizers of the Annual Investment Meeting (AIM), a congress on FDI set to run from April 8 to 10 in Dubai, the UAE.
The new FDI law will be in discussion during the AIM, and local officials will go in-depth on its key aspects, as well as features that make the UAE the preferred FDI destination in the region, including its strategic location and business-friendly environment.
“Attracting international investments is critical to the sustainable development of any country, and in the case of the UAE, to its economic diversification strategy. During the event, UAE representatives will showcase investment and growth prospects in the country brought about by the new law and its steady national socio-economic development,” AIM Organizing Committee CEO Dawood Al Shezawi was quoted in a press release as saying.
The law provides that an FDI unit will be created within the Ministry of Economy. The unit will propose policies, identify priorities, outline relevant programs and lead implementation of government-approved proposals. It will also oversee the creation of a comprehensive data bank for UAE investment, as well as assist with registration and licensing of FDI projects. The unit’s inception is expected to improve transparency, as well as provide investors with a clearer picture of the local economy.
The International Monetary Fund (IMF) estimates that real Gross Domestic Product (GDP) will be up 3.7% this year, up from 2.95% in 2018. Non-oil GDP is expected to be up 3.4% in 2019 according to the UAE Central Bank, up from 2.6% in 2018. “As the country prepares for a post-oil future and continues to transition to a knowledge- and innovation-driven economy, the FDI law is going to be an influential factor that will drive the UAE’s socio-economic growth and development in the 21st century,” Al Shezawi said.
In addition to the main conference, the AIM will feature workshops, presentations and a fair featuring exhibitors from around the world – including a Brazilian Pavilion of agribusiness companies. Check out the full coverage of the event on ANBA next week.
Translated by Gabriel Pomerancblum
