Dubai has been ranked the number one destination globally for attracting greenfield foreign direct investment (FDI) projects, according to the Financial Times’ FDI Markets report. Dubai achieved 89.5% year-on-year growth in total announced FDI projects in 2022, while total FDI capital surged 80.3% over the same period, consolidating the emirate’s status as one of the top three global cities.
The emirate ranked first in attracting FDI projects into tourism, business services, financial services, transport and warehousing, consumer products, and software and IT services sectors. Dubai also emerged as the 2022 world leader in attracting FDI projects in the creative industries cluster, in research and development projects, and in attracting FDI project headquarters. Dubai attracted a total of 1,173 FDI projects in 2022.
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Dubai has retained its number one global ranking for attracting Greenfield foreign direct investment (FDI) projects in 2022 for the second consecutive year. The latest data from the 2022 Financial Times ‘FDI Markets’ report shows that Dubai achieved 89.5% year-on-year (YoY) growth in total announced FDI projects and 80.3% YoY growth in total FDI capital. This reinforces Dubai’s position as the top FDI hub in the world and one of the top three global cities, in line with the Dubai Economic Agenda D33 launched by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai.
Dubai’s FDI Market in 2022
Dubai’s top spot in attracting Greenfield FDI projects can be attributed to several factors, including its deep stability, sustainability, infrastructure, and opportunity-rich environment. Dubai has forged dynamic partnerships with global investors to accelerate innovation and create enduring economic value. It has also attracted FDI in a wide range of industries, especially future-oriented sectors, such as tourism, business services, financial services, transport and warehousing, consumer products, and software and IT services sectors.
According to Financial Times Ltd. ‘FDI Markets’ data for 2022, Dubai continued to maintain and improve its leadership position across key FDI attraction metrics. Dubai also emerged as the 2022 world leader in attracting FDI projects in the creative industries cluster, research and development projects, and in attracting FDI project headquarters by hosting international companies’ global and regional headquarters.
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Dubai’s Leading FDI Sectors
Dubai’s leadership position in attracting FDI can be attributed to its focus on key sectors. The tourism sector is one of the most important sectors for Dubai, and it has attracted FDI projects in this sector. Dubai is also a hub for business services, financial services, transport and warehousing, consumer products, and software and IT services sectors. The creative industries cluster, research and development projects, and attracting FDI project headquarters are also key sectors for Dubai.
Dubai’s FDI Strategy and Initiatives
Dubai’s leading global FDI ranking is a result of a comprehensive framework of initiatives launched to further strengthen the city’s business and investment environment, based on the directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, and Prime Minister of the UAE and Ruler of Dubai. The Dubai Economic Agenda D33 aims to consolidate Dubai’s position as one of the world’s top urban economies.
The growth of the city’s share in global Greenfield FDI projects demonstrates the effectiveness of the strategy and highlights the city’s position as the capital of the global digital economy and a hub for innovation and technology. Dubai has taken several initiatives to enhance its FDI market, such as the establishment of the Dubai Investment Development Agency, which aims to enhance Dubai’s investment environment and attract more foreign investment.
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Dubai’s Position as the Capital of the Global Digital Economy
The growth of the city’s share in global Greenfield FDI projects clearly indicates Dubai’s position as the capital of the global digital economy and a hub for innovation and technology. It further ensures that increasing FDI inflow remains a top priority and key goal of the D33 Agenda.
Comparison to 2021
Compared to 2021, Greenfield FDI (wholly owned) and new forms of investments increased by 6% in 2022. The new forms of investments demonstrate the level of Dubai’s domestic market maturity and the diverse non-equity-based partnership opportunities across joint ventures, strategic alliances, sub-contracting, licensing, production-sharing franchising, and turnkey projects.
Dubai’s Share in Attracting Global Greenfield FDI Projects
The emirate’s share in attracting global Greenfield FDI projects reached 4%, an increase of 1.9% compared to 2021, with a record 837 projects enabling the city to achieve the highest growth in global shares across the past seven years, according to data from Financial Times Ltd. Dubai’s success in attracting Greenfield FDI projects can be attributed to its strategic location, advanced infrastructure, favorable business climate, and innovative policies aimed at facilitating investment and entrepreneurship.
The emirate’s focus on diversifying its economy and expanding its knowledge-based sectors, such as technology, research and development, and creative industries, has also contributed to its leadership position in attracting FDI.
Overall, Dubai’s retention of the No. 1 global ranking for attracting Greenfield FDI projects in 2022 highlights the emirate’s resilience, adaptability, and attractiveness as an investment destination, even in the face of global economic challenges. It also reinforces Dubai’s commitment to maintaining its position as a leading global city and a hub for innovation, entrepreneurship, and sustainable growth.
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