Dubai has secured its position as the leading city globally for attracting Greenfield Foreign Direct Investment (FDI) projects during the first half of 2024, based on data from Financial Times Ltd’s ‘fDi Markets.’ The city secured 508 Greenfield FDI projects from January to June 2024, capturing 6.2% of the global market, an increase from 5.7% in the same period last year.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, highlighted that the city’s continuous success is a testament to the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE. His forward-thinking strategies have transformed Dubai into a top-tier destination for foreign investment.
Sheikh Hamdan emphasised that Dubai’s evolving policies and growing infrastructure have strengthened its position as a key destination for investors and global corporations. His comments came during a briefing presented by Helal Saeed Almarri, Director General of Dubai’s Department of Economy and Tourism, which focused on the city’s FDI performance and tourism sector for the first half of 2024.
Sheikh Hamdan noted that since 2021, Dubai has maintained its dominance in attracting foreign investments, bolstered by its advanced economic framework and supportive policies. This steady performance highlights the city’s appeal to investors seeking innovation and sustainable development. Sheikh Hamdan further reiterated Dubai’s commitment to securing its place among the top three cities globally in terms of business, tourism, and quality of life. He reiterated the importance of continuing strong policies to attract investments in alignment with the Dubai Economic Agenda D33, which aims to double the emirate’s economic size by 2033.
Dubai has consistently outpaced other financial centres such as London, Singapore, and New York in attracting Greenfield FDI since the latter half of 2021. In 2024, the city led in various sectors, including tourism, real estate, and fintech, cementing its status as a global investment leader.
Regionally, Dubai climbed from sixth to third globally in terms of Greenfield FDI capital, while rising to the top spot in the Middle East and North Africa region in 2024. This rise reflects Dubai’s efforts to create a favourable environment for investors, featuring regulatory improvements and strategic initiatives encouraging economic growth.
In total, Dubai saw the announcement of 801 FDI projects in the first half of 2024, with an estimated value of AED 21.85 billion, according to Dubai FDI Monitor. This includes various forms of investments such as greenfield ventures, reinvestments, and mergers. The total FDI capital increased by 8% compared to the same period in 2023, underscoring Dubai’s growing appeal to investors.
In terms of job creation through inward FDI, Dubai ranked fifth globally while continuing to hold the top spot in the MENA region. The city attracted talent across industries such as IT services, textiles, and financial services.
Helal Saeed Almarri praised Dubai’s ability to consistently attract Greenfield FDI, crediting the city’s strategic vision and its appeal to global investors. He also highlighted that despite global challenges like economic volatility, Dubai continues to offer a conducive business environment and access to global markets. Almarri added that the Dubai Economic Agenda D33 is key in driving long-term growth by supporting sectors such as AI, logistics, and tourism.
Economic resilience Hadi Badri, CEO of Dubai Economic Development Corporation, highlighted that Dubai’s consistent performance in attracting FDI stems from its leadership’s strategy to foster a sustainable economy. He also mentioned that Dubai’s strong growth in both project numbers and capital reflects its investor-friendly environment and collaborative approach with stakeholders.
During the same briefing, Sheikh Hamdan was updated on Dubai’s robust tourism performance, which continued to contribute to its ranking as the top city for Greenfield FDI in tourism-related projects, capital, and job creation. Between January and July 2024, Dubai saw 10.62 million international visitors, marking an 8% rise compared to the previous year. The city’s hotels also performed well, with improvements in occupancy rates and revenue metrics.
According to Dubai FDI Monitor, new forms of investments (NFIs) and reinvestment FDI projects grew during the first half of 2024, showcasing Dubai’s market maturity and the range of investment opportunities it offers. In terms of capital inflows, India ranked as the top source country, followed by Switzerland, the United States, the United Kingdom, and France.
The top sectors for FDI capital included building materials, IT services, and tourism, while business services and food and beverages led in terms of the number of FDI projects. These sectors reflect the city’s diversified economy and its attractiveness to investors across various industries.
Original article reference: Government of Dubai.
