Foreign direct investment (FDI) in Dubai hit AED16.5bn ($4.49bn) during the first six months of 2012, official statistics released on Sunday revealed.
According to the foreign investment office in the emirate’s Department of Economic Development (DED), 113 companies initiated 115 FDI projects during the first half of the year, which accounted for 1.5% of total global FDI projects.
The report added that January saw the highest average capital investment while the highest number of projects in a single month (26) was recorded in April 2012.
The figures showed that total FDI flowing into Dubai during January-June 2012 increased 7% in the first half of 2011.
“More and more firms and investors worldwide are now convinced of the unique growth opportunities Dubai provides as a regional hub and business centre. The rise in number of multinationals relocating to Dubai and in FDI across key industry sectors in the emirate validate this,” said Fahad Al Gergawi, Chief Executive Officer of Dubai FDI.
“Dubai FDI is particularly proud to see such positive outcomes achieved by the government of Dubai as our focus is on comprehensively promoting business in Dubai and enabling investors to take advantage of Dubai’s competitiveness,” Gergawi added.
Countries like India, USA, UK, Saudi Arabia, Qatar, Germany, Switzerland and France were the top source countries of FDI in Dubai during H1 2012. The top 10 countries accounted for 83 projects, or 72% of the total, and their combined investment of AED15.5 billion ($4.22bn) was 94% of the January-June 2012 FDI into Dubai. The UK and India accounted for 29% of the FDI projects, investing mainly in business services.
“It is also noteworthy that a new breed of investors is finding Dubai the place to be. Dubai’s world-class infrastructure, convenient links to the East as well as West and distinguished lifestyle is especially appealing for this generation of ambitious and innovative entrepreneurs,” Al Gergawi explained.
The figures suggested that almost 93.9% of the FDI projects initiated in Dubai during January-June 2012 are new investments, compared to 88% in the first half of 2011. Moreover, almost 45% of the projects came from companies that had not previously had a project recorded in Dubai.
Average capital investment in the new projects was AED149 million ($40.56m), while average capital investment for expansion was AED56 million ($15.25m).
The most attractive sectors of Dubai’s economy for foreign investors were real estate, leisure and entertainment, chemicals, financial services, business services, food and drinks, healthcare, communications, and metals.
The top ten sectors together attracted 77 projects worth AED15 billion ($4.08bn), representing 67% of the total projects and 93% of the net capital invested.