Monday 02, April 2018 by Jessica Combes

UAE attracts $10.3 billion FDI in 2017

 

Annual Investment Meeting (AIM) kicks off on 9 April, as global FDI flow to developing economies grow two per cent to $653 billion in 2017.

Global investment is seeing a bumpy recovery as worldwide foreign direct investment (FDI) flows reach $1.52 trillion in 2017, according to the World Investment Report published by the United Nations Council on Trade and Development (UNCTAD). FDI to developing economies remained stable, at an estimated $653 billion, two per cent more than the previous year.

However, several issues relating to FDI, obstacles to investment and development, will be addressed at a three-day mega global event, Annual Investment Meeting (AIM), taking place at the Dubai World Trade Centre, from 9 to 11 April 2018.

The FDI inflow in to the UAE reached $10.3 billion in 2017, according to the UAE Competitiveness and Statistics Authority, up from $9.6 billion recorded in 2016. This takes the total FDI stock of the country to $128.94 billion in 2017.

“The UAE’s FDI inflow is a living testimony of how liberal approach and an ease in doing business is helping the UAE attract more investment. The UAE’s FDI stock now exceeds US$128.85 billion, which is significant and puts the UAE ahead of most countries in the Middle East. Additionally, in the real estate sector, Dubai Land Department’s sound regulation that ensures maximum investment protection through escrow account has helped the emirate attract AED 107 billion investment in 2017 by 39,480 investors through 52,958 transactions – more than 65 percent of which was carried out by foreign investors. Besides, the country’s 45 free zones collectively create a large gateway for trade and investment. In 2017, the UAE’s free zones handled AED 225.5 billion worth of exports, a growth of 6.6 per cent from the previous year, according to the UAE Central Bank. The forthcoming Annual Investment Meeting will focus on accelerating FDI flows across the world and explore new ways to boost investment and trade,” said Dawood Al Shezawi, the CEO of AIM.

A recent report by Bank Santander, says, the new Commercial Companies Law and a liberal investment regime are some of the main drivers of FDI into the country and there are currently 18 draft laws that are intended to address a range of issues that are regarded as hampering foreign investment in the UAE. These laws notably cover insolvency and arbitration laws, as well as a draft foreign investment law. There has also been talk about removing the obligation that 51 percent of company capital to be held by an Emirati national, as well as about the opening of the banking and insurance sectors.

 

  

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