Dubai reported a 70 per cent year-on-year growth in total foreign direct investment (FDI) projects in the first half of 2023, according to Financial Times ‘fDi Markets’ data, with greenfield FDI projects accounting for 65 per cent of the total.
The emirate attracted 511 greenfield projects and climbed to sixth position in FDI capital attraction, with an inflow of $5.7bn (Dhs20.9bn) in H1 2023 to remain the top global destination for attracting greenfield FDI projects.
The city’s global share in the attraction of greenfield FDI projects stood at 6.58 per cent in the first six months of 2023, up 3.83 per cent compared to the corresponding period a year earlier.
The growth aligns with the city’s 10-year Dubai Economic Agenda (D33), which is aimed at doubling the size of the economy over the next decade.
“Dubai’s ability to maintain its top ranking in attracting greenfield FDI projects reflects the city’s ability to create unparalleled growth opportunities and value for global investors,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai.
“With the clear growth roadmap set out by D33, we continue to work to create an investment environment that not only wins the trust of investors from all over the world but also encourages them to contribute to Dubai’s transformation.”
Dubai accelerates diversification
The Financial Times ‘fDi Markets’ data shows Dubai rose to fourth place in employment creation from FDI projects in H1 2023 from ninth in H1 2022.
The Middle East business and tourism hub ranks fourth globally in job creation from FDI, with 43.3 per cent growth in the six months to June compared to the same period a year ago. The latest data shows that 24,236 new jobs were created during the period under review.
Dubai’s efforts to retain and attract highly skilled talent were illustrated in the top six sectors contributing to estimated job creation by FDI in H1 2023, in line with the Department of Economy and Tourism’s economic diversification initiatives.
Meanwhile, in terms of key sectors bringing FDI capital into Dubai, financial services accounted for 52 per cent, business services (12.8 per cent), software & IT services (7.5 per cent), real estate (6.9 per cent) and F&B (3 per cent).
Similarly, the Dubai FDI Monitor showed that the top five sectors accounted for 82 per cent of total FDI capital inflow and 70 per cent of total FDI projects. Leading sectors by projects include business services (22.4 per cent), software & IT (17.8 per cent), F&B (12.2 per cent), Financial Services (9 per cent) and consumer products (8.3 per cent).