Is Dubai on the verge of a new economic boom? Yes, according to industry and financial analysts. They base their conclusions on the most recent statistics from the Dubai FDI Monitor, which places Dubai top in the Arab world and third internationally in terms of FDI attraction.
“Dubai is becoming one of the most attractive FDI destinations in the world.” H.H.Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, states, “Global investors have placed their trust in our business ecosystem.”
Experts agree with Dubai’s political leadership, which has overseen a series of measures aimed at boosting the economy. In the first nine months of 2021, Dubai attracted $ 4.3 billion in FDI capital inflow from 371 projects, a significant rise from the previous year.
“Attracting $ 4.3 billion in FDI at a time when the world is still recuperating from the pandemic-induced downturn is heartening,” says Rakesh Menon, former global senior vice president of JP Morgan Bank in London.
Menon spent a significant amount of time in Dubai as a top banking executive with Standard Chartered Bank and Citi Bank before relocating to London. Dubai, he claims, is transforming itself into a prosperous European country.
“This isn’t the same Dubai as before. AI, Blockchain, Crypto, Startups, Fintech, and other emerging technologies are all part of the new Dubai. “I see a tendency of the US and Europe relocating their blockchain platforms to Dubai,” Menon observes, using the Dubai FDI Monitor’s list of FDI source countries.
The United Kingdom (UK) topped capital inflows into Dubai with 29%, followed by France (19%), the United States (14%), Saudi Arabia (6%), and India (1%). (4 percent ). These five countries together contributed to 72 percent of Dubai’s total capital influx.
In terms of FDI projects, the UK came in front with 20%, followed by the US (19%), India (11%), France (6%), and Germany (3%). (5 percent ). According to Menon, these data demonstrate Dubai’s ability to maintain the interest of the West, which holds the key to future events.
“You must also consider Dubai’s strategic location, which allows it to control 70 to 75 percent of world GDP.” As a result, I am confident in saying that Dubai is now riding the next wave of economic growth, which has just begun,” Menon adds.
H.E. Helal Saeed Al Marri, Director-General of the Department of Economy and Tourism, credits the recent FDI trends to the emirate’s forward-thinking policies, the introduction of new investment avenues, and continual improvement in the field of ease of doing business.
Finage Consulting Pvt Ltd founder Krishnakumar Varma agrees and praises Dubai’s infrastructural development throughout the years. “Their infrastructure is unrivalled in the industry.” Dubai’s growth is being fueled even more by recent measures such as 100 percent ownership,” Varma explains.
Varma, a senior banking executive with over 30 years of experience in Dubai with top banks such as Emirates NBD, First Abu Dhabi Bank, NBQ, Doha Bank, and HSBC, says Dubai’s long-term investment in world-class infrastructure is finally paying off.
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